Allocation trade involves transferring a volume of water allocation from a seller to a buyer. Allocation trade is only permitted when the volume of unused allocation available in the seller’s allocation account is greater than or equal to the volume of the trade.

Holders of water allocation are able to make an application to their water corporation to trade it. The water corporation will approve the application if it is complete and meets local trading rules.

Permitted trades include allocation trades between trading zones within Victoria and interstate. Trading rules are assessed based on the source of the water allocation. This may be different to where the allocation is used depending on whether the allocation is tagged to a different location.

Prior to unbundling the concept of allocation did not exist, although temporary trade of entitlement is often used as a comparable measure for historic trade of allocation in declared systems in Victoria.

Allocation trading history

You can get summary information here about the trading of water allocations for a given trading zone within the regulated water systems.

For example, you can find volumes traded within, into and out of the trading zone in the current season, the number of trades, price statistics on those trades, and a list of all trades.

Allocation trade opportunities and limits

This table indicates available opportunities for trade and back-trade in Victoria as set by the Victorian Trading Rules. 

Select the trading zone INTO WHICH you may wish to trade.

Click here for the data that leads to the limits above. This data may be up to 15 minutes older than the data from the above report.

If you plan to trade water through the Barmah Choke (from trading zones 6 or 10), you or your broker will need to keep an eye on available opportunity under the Barmah Choke trade limit by visiting the MDBA’s website.

If you plan to trade water out of the Murrumbidgee (from trading zone 13), you or your broker will need to keep an eye on available opportunity under the Murrumbidgee trade out limit by visiting WaterNSW’s website.

Click here for a map of the trading zones

Trading Rules generally permit trade of allocation from one trading zone to other trading zones provided that the traded water can readily flow to the destination trading zone. The trading rules also permit trade in the opposite direction ("back-trade") if previous forward trade has opened up an opportunity.

If you would like more information on how trade opportunities are calculated, please see the calculation of trade opportunities explanatory note below.

In order to protect third parties and the environment, some trade limits apply. You can find some information on limits on trade between valleys in the fact sheet and explanatory note available below.

Allocation trade from New South Wales to Victoria is limited to a net annual volume of 200 GL, or the volume that keeps the risk of spill in the Murray system below 50%, whichever is the lesser.