Yes FreeDiver, they are making a mistake.
Its a practice that the early Samericans put into use to great effect - they supported millions by this method.
An 'open' Canal releases any heat made by friction of large amounts of moving water into open air, unlike a closed pipe. Anything bigger than the ones in Sydney for Sydney Water tend to cause buckling.
The so called 'Greens' aren't real Greens - they're just another bunch of Polititians aren't they. Its not like they are really out there ...on the land. Hell, they wish to legalise Heroin.

The transferance of water uphill (or through via tunnels) is by ducting systems - not to hard to do at all. Of course it would be hard to transport water up really steep inclines or gradients.
...since this idea came into effect 10 years ago, there hasn't been a better idea since to replace it. Maybe the fact that it is not an Anglo-Saxon idea, might be why it is not supported more so although those that do, seem to be the type of Farmers that are progressive and make a 'profit' efficiently and comfortably beyond the reach of oppressive CSIRO & Govt 'control'.
A lot of 'Political Australia' doesn't like things going on in Australia that might lead this country into a better future and 'Political Australia ...behind. So Political Australia makes sure everything is 'chained down' and with words like "If it ain't broke, don't fix it" - this Country slowly goes nowhere but into the slow death of stagnation. No offence Political Australia - but 'political australia' IS BROKE (starting with NSW).
Hope this helps.
Progressive thinking and practices and results is far better long term than short fixes of 'cash'. What good is cash when most just leave Australia and go overseas to spend it.
Instead of burning and back-burning huge amounts of land around people who cry foul for living in 'fire-prone' regions ...why not build 'Fire-Proof' Houses, etc? The Straw Bale House is possibly the most superior and cheapest form of housing. It takes a good 1/2 hour for fire to burn anywhere near 'through' the wall. But I guess the Building Industry prefers the Australian Public to buy more expensive and inferior materials and makes sure the Council's endorse such inadequate methods.
No - just quick fix cash and she'll be right mate.