The Australian water markets were established in the mid-1980s. By the 1990s, water entitlements and allocations had gained momentum. Australia has faced some drought months, and this has led to water scarcity in several parts of the country., especially irrigation regions. The irrigation sector is facing severe pressure on its structural advancement. As a result, the government relies on water markets or trading. It is buying water from willing irrigators to distribute and meet environmental needs. Goulburn Murray Irrigation District is mandated to examine the efficiency of water entitlement and allocation markets. Here is all there is to know about it.
Accessing Information About Trading Opportunities And Current Prices
There are downloadable fact sheets containing all information regarding trading procedures and rules. Additionally, you can contact a licensing unit at GMW to help confirm the water trading rules that apply to your licence before continuing with the purchase or selling process. Unfortunately, the GMW can’t provide the current market value information regarding the Goulburn-Murray water trading prices. However, if you decide to proceed with the application, you can get information about water pricing and market activity from your local water broker. You can always find one through the advertisement in the local newspaper.
If you want to trade or buy Water to the Victorian Murray, then it’s best to monitor the limits. The limits fluctuate, and the Goulburn-Murray water trading prices are also unpredictable. Even after reaching the required limits, there are still possibilities that more trade opportunities will reopen. It will happen if the inter-valley trade balance decreases, which usually occurs when:
- There is a back-trade
- When the MDBA uses Water from the inter-valley trade account as the river manager, and
- If any inter-valley trade carries over balance spills.
Water users use either permanent or temporary Water dreading to fit different purposes. Usually, two participating groups are selected from the two different water traders. Permanent Water Trading; In the GMIS water year; 1999/2000, there were about 480 transactions. A water year is from 1 July to 30 June. While the number of transactions was high, the number of participants was low at 315. It was due to multiple trading by some participants. Temporary Water Trading; the GMIS holds large numbers of temporary water transitions each water year.
Understanding the Trade Rule
The Victorian Government made a new decision regarding the long-term trade and operations of the GMIS. Continuously, the government reviewed the Goulburn-Murray water trading prices and operational rules to help come up with a long-term rule. These rules were to strike a balance between the two, supporting further trade water users rely on. The main purpose of introducing the new rule was to avoid further damaging the environment at the lower Goulburn River and to decrease the risks in Murray.
This long-term trade rule matches the operating rules that will help keep the flows lower with better variables over the summer and autumn months. It will help prevent any damage seen in the 2017-18 and 2018-19 water years. At the time, the flows were high for longer periods. These long-term rules are similar to what was working in previous years. The only key modification is improving trade, the better concern for recreational and cultural values, and environmental outcomes.
With the new trade rule, Goulburn-Murray water trading will remain below 150 gigaliters, which is an increase of 130 gigalitres under interim rule. Additionally, the trade rule has also undergone refinement to aim at certainty and simplicity, with three major trade announcements every year. These are; 1 July, 15 October and 15 December.
Water Trading Points To Note About Goulburn-Murray Water Trade
- All water buyers get equal access, including the GMW irrigators
- As in the previous trading years, a panel of five water brokers will administer the water trade.
- The minimum parcel of water allocation is 20 ML.
- Once the trades are all approved, they will be published on the GMW website.
- The owner of the water, GMW, is always blind to the buyer’s identity.
- Water brokers need to advertise purchases of the seller’s identity, the GMW.
Transfer Of Entitlements
The Goulburn-Murray Water oversees the temporary and permanent transfer of entitlements of the unregulated surface water licences. They achieve this under the provisions of the Water Act 1989 Section 62. Transferring unregulated surface water allows the existing licence holder to maximise their licence value by trading the unused entitlement. In addition, this trading offers opportunities for other licence holders to access additional water entitlement.
Goulburn-Murray water trading is a huge face of the Australian water market. When it comes to trading, the Water Register is the trading rule that helps govern how application processes take place. For example, all applicants must sign a statutory declaration when undertaking a Water Transfer application. Alternatively, they can get a consent form from the existing landowner.