The development of Australia's water markets represents a centrepiece of national water reform.

Trade in various water products has grown substantially in recent years, with the combined value of markets estimated to be $3 billion in 2009-10.

Water markets provide an example of successful national micro-economic reform, ensuring that scarce water resources are most effectively and efficiently allocated amongst competing uses. At the same time, the ability to trade has delivered real benefits to individual water users, water-dependent industries and the environment.

Recognising that there is further scope to extend the benefits of trading, Strengthening Australia's water markets was commissioned to analyse issues that may impede the efficient operation or further development of markets. The recommendations and supporting actions outlined in this report are intended to open up greater access to trading, improve market performance and allow for future growth.