Increased scrutiny and contestation over recent water allocation practices and licencing decisions in the Northern Territory(NT) have exposed numerous inadequacies in its regulatory framework. Benchmarking against the National Water Initiative shows that NT lags behind national standards for water management. We describe key weaknesses in NT’s water law and policy, particularly for Indigenous rights and interests. NT is experiencing an acceleration of development, and is conceptualised as a ‘hydrological frontier’, where water governance has institutionalised regulatory spaces of inclusion and exclusion thatentrench and (re)produce inequities and insecurities in water access. Regulationsdemarcate spaces in which laws and licensing practices provide certainty and security of rights for some water users, with opportunities to benefit from water development and services, while leaving much of NT (areas predominantly owned and occupied by Indigenous peoples) outside these legal protections. Water allocation and planning, as well as water service provision, continue to reinforce and reproduce racialised access to (and denial of) water rights. Combining an analysis of the law and policies that apply to water for economic development with those designed to regulate domestic water supply, we present a comprehensive and current picture of water insecurity for Indigenous peoples across the NT.