This issues paper looks at alternative market-based mechanisms that could be used to diversify the federal government's water purchase program and secure access to the suite of entitlements necessary to restore balance to the use of the resource.

The Restoring the Balance in the Murray-Darling Basin program currently uses an open tender process as the principal way of purchasing water entitlements from willing sellers to restore environmental flows and is being implemented over a ten-year time frame. Restoring environmental flows will provide more water for high value environmental assets, as well as protect against algal bloom outbreaks, salinity and other water quality risks that threaten the health of our rivers and the livelihood of our farmers and regional communities.