Finding a balance between practical and acceptable groundwater management, and providing for the needs and impacts of mining developments remains a challenge. The changes that accompanied the recent implementation of water reforms have provided greater flexibility for the water manager and greater certainty for the resource user. However uncertainty associated with understanding of complex aquifer systems, balanced against providing for the needs of mining developments, the rights of existing water resource users and expectations of the broader community have not diminished the conflicting issues faced by water resource managers and resource developers. Licensing under the Water Act 2000 provides the regulatory link with the taking of water for water supply purposes or as a consequence of the mining activity. This paper outlines key elements of sustainable water resource management involving certainty of access to water and adaptive environmental management that are delivered through conditioning the water licences issued for the particular mining development. Implementation of this approach is illustrated through a case study involving the BHP Billiton Cannington Mine in North West Queensland.