Water Markets
Water Trading
Water to the value of $3 billion was traded during the 2009 - 2010 financial year. This is an increase of 88% compared to 2007 - 2008, when $1.6 billion was spent in Australia's emerging water markets.
While a lot of debate occurs about carbon reduction and the use of a cap and trade market to achieve it, many countries are watching Australia's use of water markets and how we manage our water.
Australia has the largest cap and trade water market in the world. It exists in the Murray-Darling Basin (MDB). A cap on the issuing of new water licences in most of the MDB commenced in 1995. So, any new business which requires irrigation water in the MDB, will need to enter the market to purchase water.
Geographically, the MDB is the size of France and Spain combined. NSW is the largest trading State followed by Victoria and then SA. Water trading in Queensland will grow and is likely to overtake WA and SA in the years to come.
Chart 1: Value ($ billion) of water trading in Australia
Source: Percat Group Pty Ltd ACN 101 161 764 trading as Percat Water
Irrigators are encouraged by Australian Governments to trade water across States, regions and irrigation districts to move water to where it is most needed.
More and more, our cities are buying water entitlements (licences) from irrigators to ensure that people have sufficient drinking water and our industries can continue to manufacture.
Water markets have expanded with the introduction of the cap on new government licences and shortages of water across Australia.
Water trading has increased significantly to a high of about 30,000 trades per year.
Disclaimer
The facts and figures in this website are based on information obtained from Australian Water Investments and its preferred partner, Percat Water, as well as different water authorities. Australian Water Investments and Percat Water are not valuers. Users of the website should make their own enquiries about prices and information provided on this website and individual valuations of water are recommended.
This website contains general information about water markets in Australia. No facts or figures or statements of opinion in this website should be treated as financial product advice or taken to be an offer or the solicitation of an offer in relation to any securities or other investment. Australian Water Investments Pty Ltd does not currently hold an Australian Financial Services Licence.