Water for the Future

Policy and programs

Restoring the Balance in the Murray-Darling Basin


Water entitlement purchasing in the Murray-Darling Basin

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 to the Restoring the Balance in the Murray-Darling Basin program to purchase water for the environment.

2011-12 Restoring the Balance in the Murray-Darling Basin water purchasing program

On 21 September 2011, Water Minister Tony Burke announced three new water purchasing tenders in the northern Murray-Darling Basin for up to $150 million. These tenders have now closed.

Queensland Lower Balonne

The recent water purchasing tender in the Queensland Lower Balonne closed at 5.00pm on Friday, 9 December 2011. All applicants have been notified of the outcome of their sell offer.

The November tender received several offers from interested sellers. As a result of the tender, the department is pursuing the purchase of over two gigalitres of entitlements from the Queensland Lower Balonne. The tender was not fully subscribed, so uncommitted funds will be made available for future water purchase tenders.

Any purchases made through this tender are still subject to legal due diligence checks before a water sale contract will be issued. Information on the total volume of entitlements purchased in the Lower Balonne is added to the department's website once trades are secured by legally binding contracts.

Information on average prices paid in this tender is available via the 'Average Prices' link below.

Namoi and Border Rivers

The recent water purchasing tender in the New South Wales Namoi and Queensland and New South Wales Border Rivers closed at 5.00pm on Friday, 11 November 2011. All applicants have been notified of the outcome of their sell offer.

The October tender received several offers from interested sellers. As a result of the tender, the department is pursuing the purchase of over one gigalitre of entitlements from the Queensland Border Rivers. The department is not pursuing the purchase of any offers in the New South Wales Border Rivers or Namoi catchments. The tender was not fully subscribed, so uncommitted funds will be made available for future water purchase tenders.

Any purchases made through this tender are still subject to legal due diligence checks before a water sale contract will be issued. Information on the total volume of entitlements purchased in the Border Rivers is added to the department's website once trades are secured by legally binding contracts.

Information on average prices paid in this tender is available via the 'Average Prices' link below.

Future Tenders

Information on further tenders under the 2011-12 Restoring the Balance in the Murray-Darling Basin water purchasing program has yet to be announced.

Please monitor regional media and this website for news of any future water purchasing tenders under the program.

All enquiries should be directed to Freecall 1800 218 478 or emailed to waterpurchasing@environment.gov.au

Average prices of offers pursued from recent water purchase tenders

At the conclusion of each water purchase tender, the Department uploads price information to this program website. 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.

The most recent price information on water purchases is as follows:

Progress of Water Recovery through the Restoring the Balance program

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.

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 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 the completion of their trade is likely to be affected by the four per cent trade limit, 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 in the Murray-Darling Basin Darling Paroo Warrego Macquarie-Bogan Castlereagh Namoi Gwydir Border Rivers Moonie Lachlan Murrumbidgee NSW Murray Vic Murray Kiewa Ovens Broken Goulburn Campaspe Loddon Avoca Wimmera - Mallee South Australia Murray Condamine-Balonne

Irrigation catchments

  1. Avoca
  2. Border Rivers
  3. Broken
  4. Campaspe
  5. Castlereagh
  6. Condamine-Balonne
  7. Darling (Barwon-Darling)
  8. Goulburn
  9. Gwydir
  10. Kiewa
  11. Lachlan
  12. Loddon
  13. Macquarie-Bogan
  14. Moonie
  15. Murrumbidgee
  16. Namoi
  17. NSW Murray
  18. *Ovens
  19. Paroo
  20. SA Murray
  21. *Vic Murray
  22. Warrego
  23. Wimmera-Mallee

+ 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.

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