Australian water markets: trends and drivers, 2007-08 to 2009-10

• National Water Commission

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Report cover: Australian water markets

04 July 2011The annual Australian water markets reports provide statistics that summarise activity in Australian water markets, together with information on water market structures. The aim of this synthesis report is to analyse trends in market activity (how much water is being traded and where), as well as the drivers influencing market outcomes (why is water being traded). Although the focus is on the southern Murray–Darling Basin where the majority of trade occurs, the report also provides information on trade outside the basin.

This report shows the links between water availability and water allocation trade. Changes in rainfall, inflows and storage levels control allocation levels, and therefore the volume of water available for trade. Water availability and announced allocation levels affect seasonal demand for additional water, which in turn affects the extent and volume of allocation trade. The price of allocation trades is also influenced by water availability, with significant variability in allocation prices over time.