The Hawkesbury Nepean River Recovery Project: Purchase of river extraction entitlements from willing sellers Project Component
Funding: Up to $ 5,350,000 from the Australian Government.
About the project component
The Metropolitan Water Sharing Plan is expected to be gazetted under the Water Management Act in 2009. The Metropolitan Water Sharing Plan will secure a share of the available water for the environment as required by the Act, and will also give entitlement holders a statutory entitlement, access rules and enable water trading.
Once the Metropolitan Water Sharing Plan has been gazetted, the Hawkesbury Nepean River Recovery Project - Purchase of river extraction entitlements from willing sellers Project Component will purchase water extraction entitlement licences from willing sellers across the Water Source.
The project aims to:
- stimulate the use of water trading in the Water Source once the Water Sharing Plan is gazetted
- gauge the market value of water in the Water Source and over time deepen the market
- purchase an estimated 3 gigalitres of water entitlement for the environment which would reduce existing diversions by approximately 1.7 gigalitres per year1
1based on assumptions of an average WAL Water Acquisition price and that 50% of the licensed entitlement volume is currently extracted each year.