National Overview
Water market activity

Australia’s water market facilitates the buying and selling of water entitlements and allocations to allow water to move between different urban, rural and environmental uses. Entitlement trades involve permanent transfers of the water access licence. Allocation trades involve the buying and selling of allocated water in a year.

The Murray–Darling Basin is by far the most active water market of the nine regions, generally accounting for more than 95% of surface water entitlement trade and almost all of the allocation trade in the National Water Account. In 2013–14, the volume of surface water entitlements traded in the Murray–Darling Basin was 1,957,514 ML. The trade in surface water allocations was 5,217,964 ML, 13% less than in 2012–13. The decrease in surface water allocation trading activity is consistent with low water storage and drier conditions across the region.

Interstate trade

Interstate water trading mainly occurs in the southern Murray–Darling Basin (between New South Wales, Victoria, South Australia, and the Australian Capital Territory), and to a lesser extent between northern New South Wales and Queensland.  

In 2013–14 trading, Queensland and South Australia were net importers of allocation water, while New South Wales and Victoria were net exporters. The largest net volume of allocation trade was from Victoria to South Australia (286,119 ML), followed by New South Wales to South Australia (253,244 ML). This pattern of water movement is consistent with the previous year’s allocation trade.

More water market information is available at the Australian Government Water Market portal.

Interstate trade allocation trading activity, expressed as volume and direction of net trade, in the Murray–Darling Basin in 2013–14