Questions and answers - Average prices of offers pursued in the Southern Murray-Darling Basin
Q: Why is the Australian Government paying less for water entitlements than it did in previous years?
The Australian Government is paying less for water entitlements because sellers are offering their water at lower prices. This reflects changes in market conditions in the southern Basin which have resulted in the price of most water entitlement types being lower than those observed in previous years.
Q: Why does the Australian Government pay less for water entitlements from above the Barmah Choke?
Paying less for Murray River entitlements held above the Barmah Choke is consistent with the value for money approach being used for the water purchase program.
It recognises that entitlements held above the Barmah Choke provide a reduced set of options for environmental use compared with those held below the Choke.
Price data from the Victorian water register also indicates that above the Choke entitlements generally trade for less than equivalent entitlements below the Choke.