A new independent report by Aither has been released today providing new insights into recent trends and drivers of water market prices for allocation in the southern connected Murray-Darling Basin. It also contains modelling of possible future scenarios for water market trends and the potential response of different industries.

The report shows that the primary drivers of water allocation prices in recent history have been annual water availability, water recovery for the environment from the consumptive pool and growing demand for water from higher-value industries like perennial horticulture and cotton.

The analysis has been developed using an updated water market modelling approach and considers a range of factors that can drive water market outcomes, including supply and demand, water recovery for the environment, industry trends and trade constraints.

The report provides valuable insights for water market participants about how water market prices for allocation have changed in recent years and how the southern connected Murray-Darling Basin water market could evolve in coming years under different scenarios – helping people to make informed decisions for the future.

Download PDF Fact Sheet: Southern Murray-Darling Basin Water Market Trends and Drivers 2020 (PDF - 158 Kb)

Download PDF Southern Murray-Darling Basin Water Market Trends and Drivers Report 2020 (PDF - 1,080 Kb)

With increasing competition for water, Victoria’s strong entitlement framework is critical to supporting water users to manage their water needs in a fair and efficient way. Tools like carryover and trade are important to allow water entitlement holders to manage their water needs and business risks.