Water Trading

Background (ACT Water Access Entitlement)

Before accessing surface water or groundwater, water users within the ACT must hold an entitlement (Water Access Entitlement, WAE) and a licence (Licence To Take Water). A WAE entitles the holder to a share of the water resource within a specified Water Management Area. WAE's are expressed as a maximum volume and as a share of the available resource. WAE's are tradeable. A licence specifies the location from which the WAE can be accessed and the purpose for which the water can be used.

The Water Resources ACT 2007 makes provision for the announcement of Annual Allocations. An Annual Allocation is an annual percentage of all WAE's that may be determined by the Environment Protection Authority in times of water scarcity. There have been no announcements made to-date (i.e. 100% allocations).

Trading

Water trading is available within the ACT. WAE's may be purchased or sold either permanently or for a specified period. All trading is subject to the requirements of the Water Resources Act 2007 which provides that each trade must be approved or rejected by the Environment Protection Authority.

Application forms for the purchase or sale of a WAE within the ACT can be accessed here.

Interstate water trading is not yet available to or from the ACT. The commencement of interstate trading is dependant on the agreement of trading protocols with other jurisdictions of the Murray-Darling Basin (MDB).

The Council of Australian Governments and the Natural Resource Management Ministerial Council have developed service and reporting standards for trade processing times by jurisdictions within the MDB for both entitlement and allocation trades. The ACT Government is committed to meeting those standards.

The standards can be viewed at http://www.nationalwatermarket.gov.au/about/trade-processing.html

Entitlement trading volumes for the 2011-2012 financial year and compliance with the trading standards is displayed below. 

Entitlement trading volumes for the 2011-2012 financial year and compliance with the trading standards
Description Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Trades Total
Number of trades 3 - - - - - 2 1 - - - - 6
Volume traded (ML) 11 - - - - - 126 1 - - - - 138
 
Price per ML
Median price ($/ML) 0 - - - - - 1 1 - - - -
Highest price ($/ML) 0 - - - - - 1 1 - - - -
Lowest price ($/ML) 0 - - - - - 1 1 - - - -

Water Trading 2011-12 (Financial Year) 

Allocation Trades 2011-2012
Description Number of trades Performance against standards Intended service standard
Inter-state trades - % of trades processed within 10 business days 0 n/a 90%
Intra-state trades - % of trades processed within 5 business days 0 n/a 90%
Entitlement trades 2011-2012
Description Number of trades Performance against standards Intended service standard
Approval - % of trades approved within 20 business days 6 83% 90%
Registration - % of trades registered within 10 business days 6 100% 90%
NOTE:
  • This report includes the time taken to approve or refuse applications which were finalised during the period indicated.
  • This report includes business days only.
  • There is no separate registration process in the ACT. Trades are registered on the same day they are approved.
  • There has been no demand for Annual Allocation trading in the ACT, hence no table is presented for allocation trades

Allocation Trades in 2011 - 2012

There has been no demand for allocation trading.

Water Trading 2010-11 (Financial Year)

Allocation Trades 2010-2011
Description Number of trades Performance against standards Intended service standard
Inter-state trades - % of trades processed within 10 business days 0 n/a 90%
Intra-state trades - % of trades processed within 5 business days 0 n/a 90%
Entitlement trades 2010-2011
Description Number of trades Performance against standards Intended service standard
Approval - % of trades approved within 20 business days 4 100% 90%
Registration - % of trades registered within 10 business days 4 100% 90%