This publication provides an overview of the economic effects of water recovery on water prices and the irrigation sector in the southern Murray–Darling Basin. The analysis uses economic modelling to separate the effects of water recovery from seasonal variations in rainfall and water supply, along...

This report presents a series of forward looking scenarios for the southern Murray-Darling Basin water market, examining potential future water prices, trade flows and irrigation sector outcomes, taking into account recent and expected trends for water supply and demand.

This study used the ABARES water trade model is used to simulate what would happen to the water market under a repeat of the Millennium drought, with current water demand, environmental water recovery, trade limits and carryover rules.

The model provides a basis for separating the effects of historical climate, market and policy shocks on the southern Murray-Darling Basin (sMDB) region, and for simulating the effects of potential future shocks.