Australian water markets report 2016-17

The Australian water markets report 2016-17 presents detailed information on Australian water markets for the 2016-17 financial year, including statistics on water access entitlement and water allocation trade, entitlements on issue and environmental water. It focuses on water markets in the southern Murray-Darling Basin which is Australia's most significant water market.

Key Issues

The key statistics for Australian water markets in 2016-17 are:

• Water storage levels increased 29 per cent in 2016-17, a large increase in water availability compared to 2015-16. • The Murray-Darling Basin accounted for 78 per cent of Australia's regulated surface water entitlements on issue (10,639 GL in the southern Murray-Darling Basin (MDB) and 3,187 GL in the northern MDB) while systems outside the MDB accounted for 79 per cent of unregulated surface water entitlements on issue (7,669 GL) and 72 per cent of groundwater entitlements on issue (6,114 GL). • Water allocation trade across Australia totalled 7,035 GL (an increase of 1,219 GL or 21 per cent compared to 2015-16). The southern MDB made up 86 per cent of allocation trade (6,038 GL). • Water entitlement trade across Australia totalled 2,072 GL (an increase of 388 GL or 23 per cent compared to 2015-16). The southern MBD made up 37 per cent of entitlement trade (775 GL) and the northern MDB made up 40 per cent of entitlement trade (820 GL).

Many of the trade restrictions in the southern Murray-Darling Basin were binding throughout 2016-17 (for example, the Murrumbidgee inter-valley transfer limit).

New types of water products such as carryover parking and futures became increasingly popular in 2016-17.

High level results from ABARES modelling of water markets in the southern MDB shows water demand from the dairy and rice industries fell between 2003 and 2017, while water demand from the cotton, and fruit and nut industries increased over the same period.