Restoring the Balance in the Murray-Darling Basin
Water entitlement purchasing in the Murray-Darling Basin (water buybacks)
The health of the Murray-Darling Basin is in decline. Available water is currently over-allocated, and this problem is likely to become worse as water availability declines due to climate change.
The Restoring the Balance in the Murray-Darling Basin Program is an important component of the Water for the Future initiative. The Australian Government has committed $3.1 billion over 10 years to purchase water in the Murray-Darling Basin. The program will complement a range of other measures to achieve sustainable water management in the Basin.
The 2009-10 water purchasing tenders conducted both in the southern connected Murray system and the Queensland region of the Lower Balonne catchment have now closed. Details of 2010-11 water purchasing tenders will be provided on this website when announced by the Minister.
New study on the impacts of water purchasing
In June 2008, the Department commissioned the Australian Bureau of Agricultural and Resource Economics (ABARE) to examine the future impacts of the Australian Government's water purchase program on water markets, regional economies and communities in the Murray-Darling Basin.
Average prices of offers pursued from May 2010 water purchasing tender
The average prices of those offers pursued from the latest 2010 tender, in May 2010, are reported below. These prices have been publicly released to provide greater transparency to the tender process and to assist irrigators who may be considering placing a sell offer into future tenders in understanding recent market prices. Please see the Questions and Answers for advice on why NSW offers were not able to be accepted in the May 2010 tender.
| Catchment | Entitlement class | Average price of offers being pursued |
|---|---|---|
| Vic | ||
| Campaspe | High Reliability | $1,740/ML |
| Goulburn | High Reliability | $1,862/ML |
| Loddon | High Reliability | $1,636/ML |
| Murray Below Choke | High Reliability | $1,824/ML |
| Murray Above Choke | High Reliability | $1,613/ML |
| SA | ||
| Murray River | High Reliability | $1,841/ML |
- Questions and answers relating to May average prices
- Additional information on recent market prices for water entitlements
Progress of Water Recovery through the Restoring the Balance program
- Outcomes from the Southern and Northern Basin tenders under the Restoring the Balance in the Murray-Darling Basin program are regularly updated.
Memorandum of Understanding with NSW on water trade
On 24 September 2009 the Australian and NSW governments announced a Memorandum of Understanding (MOU) allowing NSW farmers to sell their water entitlements to the Federal Government. The MOU provides a clear plan for future water purchase in NSW until 2012-13, and will aid the completion of trades from willing sellers in NSW under the Australian Government's 2008-09 water purchase tenders.
Obtaining approval for water purchases in Victoria
One issue that may delay approval is the four per cent limit on net trade out of irrigation regions in Victoria. Sellers need to resolve for themselves whether this issue affects them.
Sellers do not need a certificate exempting them from the four per cent limit to lodge an application under the Restoring the Balance in the Murray-Darling Basin program. However, if they believe they are affected by the four per cent issue, it would be in their interests to contact the Northern Victorian Irrigation Renewal Project (NVIRP) to determine whether their entitlement is eligible for an exemption from the four per cent limit. Information on the process by which Exemption Evidence Notices will be issued can be obtained from NVIRP via their website (www.nvirp.com.au ) or by calling 1300 068 477. Further information on this issue can be found in the Guidelines and Information Package for the Restoring the Balance in the Murray-Darling Basin program.
Water purchasing by catchment in the Murray-Darling Basin+*
- MDB catchments
+ The water purchasing catchments on this map are based on the Murray-Darling Basin River catchments with modifications to catchments along the Murray River to accommodate trading practicalities.
* To protect the privacy and confidentiality of individual sellers, purchasing information in catchments with less than five offers being pursued have been combined with information from nearby catchments with similar characteristics.
Related information
- Market price information for Murray-Darling Basin Water Entitlements
- Commonwealth and NSW purchase Toorale - media release
- Water Recovery and Environmental Use Stakeholder Reference Panel
More information
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