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 trading history

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Notes and disclaimers

  • These statistics are by trading zone source, rather than trading zone use. This means that they show the direction of trade according to where the trader is storing the water rather than using it.
  • Only regulated trading zones are shown as it is only these trading zones which receive allocation.
  • The statistics show approved trades only and are grouped by the date the trade was approved.
  • In the Register, trades through a pool are administered as two trades: one to the pool and one from the pool. To avoid double counting, trades out of the pool are excluded. The pool accounts are held by G-MW, therefore all G-MW trades to and from the pool are classified as within authority trades. No adjustment has been made for this.
  • The total volume traded and total number of trades are defined as the sum of trade within the selected trading zone and into the selected trading zone.
  • Net trade is defined as the sum of trade into the selected trading zone less the sum of trade out of the selected trading zone.
  • If an interstate trading zone is selected only trades to and from Victoria are shown.
  • Median price is the median price of trades within and into the selected trading zone. Some transactions do not involve change of allocation ownership or are otherwise non-monetary - these zero priced trades have been excluded from the calculation of the median price. Pricing data is based on data supplied by applicants on their trade applications and is only as good as the data
  • If there are issues with this report, please click here to let us know.

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.

Allocation trade opportunities and limits

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Notes and disclaimers

The calculation uses data current at time of execution. If there are issues with this report, please click here to let us know.

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.

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.

New long-term Goulburn to Murray trade and river operating rules have now been announced, commencing 1 July 2022. The new trade rule applies to allocation trade from the Goulburn, Campaspe, Loddon or Broken systems to the Victorian Murray and interstate. More information about the new trade rule is available below.

Announcements about trade opportunity under the new long-term Goulburn to Murray trade rule will be made on three key dates:

  • 1 July – between 80 to 85 gigalitres (GL) of net trade opportunity will be released on top of reserves that need to be set aside to deliver legacy entitlement commitments to the Murray (around 140 GL) and water that can be used under tagged entitlements that remain grandfathered under the Basin Plan (around 15 GL).
  • On 15 October – up to 30 GL of additional net trade opportunity could be released, depending on how much water irrigators have used in the Murray over winter and spring (using data from the Torrumbarry Irrigation Area).
  • On 15 December – up to 30 GL of further net trade opportunity could be released – again depending on how much water irrigators have used in the Murray in spring that year (using data from the Torrumbarry Irrigation Area). At this time, in years where Goulburn seasonal determinations are not projected to reach 100%, any legacy or grandfathered tag commitments that no longer need to be set aside will be released to the market as extra trade opportunity.

From 15 December to 30 June - net trade will be capped to ensure the use of traded water over summer and autumn can be supplied within operating limits. Further trade opportunity will only be created when there is back-trade from the Murray into the Goulburn.

Updated information on how irrigators are using water in the Torrumbarry Irrigation Area will be provided on the Victorian Water Register website.

Seasonal determination outlooks are updated on the Northern Victoria Water Resource Manager website.

Goulburn-Murray Water also publishes up to date information about water deliveries from inter-valley trade accounts, which can affect opportunities for trade out of the Broken system and for back-trade into Victorian tributaries.

Understanding Trade Limits

The 'Where can I trade?' tool is now available to help you better understand and visualise trading limits and the available trade opportunities in northern Victoria, and how these may affect your allocation trades.

You can also use this Trade Limits tool to help you to understand current and historic trading opportunities and how they applied to your previous trades.

An instructional video is also available below on how to use this 'Where can I trade?' tool.

 

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.

Click here for a map of the trading zones

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

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

Allocation Trade Data

Here you can access a list of all allocation trades which occurred within the regulated water systems for a selected region and year.

The data includes the Deal date and one of eight “Reason for trade” definitions. This is to provide more context as to the nature of the transaction. The eight Reason to trade definitions are;

  1. Standard commercial trade
  2. Related party Trade
  3. Carryover parking
  4. Carryover parking return
  5. Private lease arrangement
  6. Allocation trade as part of a water share transfer
  7. Forward contract
  8. Other

All trades submitted prior to 27 August 2020 or, on a paper form, will show reason for trade as “N/A” and the Deal date field will be blank. This is because no data is available for those trades.

You can use this data for your own analysis. For example, to analyse the volumes of trade which occurred between private water holders, environmental water holders and water corporations; or, to assess the total volume of commercial trades in a particular year.

Access to Allocation Trade Data

Notes and disclaimers

Information on allocation trade applications is reported by trading zone source rather than trading zone use. This means that they show the direction of trade according to where the trader is storing the water rather than using it. Only regulated trading zones are shown as it is only these trading zones which receive allocation.

This data includes finalised applications only and is grouped by the date the trade was finalised as approved or refused. Transactions with no monetary consideration, which may include movement of allocation between accounts owned by related parties, are reported as Non-Commercial. Trades are also classified according to whether they involve an environmental water owner.

If there are issues with this report, or if you are interested in a subscription to this data, please click here to let us know.

 

Seasonal determination outlooks are updated on the Northern Victoria Water Resource Manager website here: https://nvrm.net.au/seasonal-determinations