Because the largest part of Australia is desert, semi-arid lands known as outback. This coupled with low rainfalls and dry winters have lead to the water scarcity in Australia.
Adding to what jmendez mentioned, this water crisis is having a severe impact on Australia and many other islands surrounding New Zealand. Water is having to be flown into these areas, along with desalination machines. This already means bad news for crops, so a food shortage is probably on its way shortly. The governments are having all of their people ration every bit of water that they can, and we can only hope that they all remain safe in this crisis.
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