Menu
Market Update • September 2026

Commonwealth Water Purchasing in the Northern Basin, September 2026 update

14 September 2026

In summary

  • The Department of Climate Change, Energy, the Environment and Water (DCCEEW) invited surface water right owners in eight northern Murray–Darling Basin catchments across New South Wales and Queensland to express interest in selling water towards the 450 GL target. The Expression of Interest (ATM_2026_5959) closed in April 2026.
  • DCCEEW has now published the level of interest received. On 11 September 2026 DCCEEW released indicative volume bands by catchment, in both nominal and long-term diversion limit equivalence (LTDLE) terms. Responses were not binding offers and no decision to purchase has been made. DCCEEW states that volumes suitable for purchase are likely to be significantly lower than the volumes offered.
  • Only holders who lodged an Expression of Interest are eligible. Any purchase program arising from this process is open to existing EOI respondents only with an exception to Lachlan Valley.

Catchments and water types in the EOI

Table 1: Catchments and water type in EOI Northern Basin (ATM_2026_5959)

CatchmentWater source and water type
New South Wales
Barwon–DarlingUnregulated River Water Source: A, B and C class licences
Border RiversRegulated River Water Source: High Security, General Security A & B, and Supplementary
GwydirRegulated River Water Source: High Security, General Security, and Supplementary
Intersecting StreamsAll water sources
Macquarie–CastlereaghMacquarie and Cudgegong Regulated Rivers Water Source: High Security, General Security, and Supplementary
NamoiUpper Namoi Regulated River: High Security and General Security
Lower Namoi Regulated River: High Security, General Security, and Supplementary
Peel Regulated River: High Security and General Security
Queensland
Border RiversBorder Rivers WSS: High Priority and Medium Priority
Macintyre Brook WSS: High Priority and Medium Priority
Condamine–BalonneAll water sources and water types

Source: DCCEEW, Restoring Our Rivers Expressions of Interest, Table 1 (last updated 11 September 2026). DCCEEW was not seeking a set volume from any particular state, catchment or water right type.


Level of interest received by catchment

DCCEEW has grouped responses into volume bands. The final column records whether a separate Bridging the Gap requirement also applies in that catchment.

Table 2: EOI interest by Catchment

Catchment Interest offered
ML nominal / ML/y LTDLE
DCCEEW's characterisation Bridging the Gap position
Namoi>60,000
35,000 – 60,000 LTDLE
Potential opportunitiesSDL gap bridged (subject to conveyance and MDBA accreditation)
Condamine–Balonne (Qld)35,000 – 60,000
35,000 – 60,000 LTDLE
Broad range of potential opportunitiesSurface water bridged; 1.5 GL/y groundwater gap remains (Upper Condamine Alluvium Tributaries), tender Oct to Dec 2026
Gwydir35,000 – 60,000
15,000 – 35,000 LTDLE
Potential opportunitiesNot a Bridging the Gap catchment
Barwon–Darling15,000 – 35,000
15,000 – 35,000 LTDLE
Potential opportunitiesSDL gap bridged
NSW Border Rivers15,000 – 35,000
5,000 – 15,000 LTDLE
Potential opportunities3.7 GL/y gap remains; DCCEEW states 450 GL purchases will not be prioritised while the gap remains. Tender Sep to Oct 2026
Intersecting Streams5,000 – 15,000
<5,000 LTDLE
Potential opportunitiesNot a Bridging the Gap catchment
Macquarie<5,000
<5,000 LTDLE
Fewer opportunitiesNot a Bridging the Gap catchment
Qld Border Rivers<5,000
<5,000 LTDLE
Fewer opportunitiesNot a Bridging the Gap catchment

Source: DCCEEW, Restoring Our Rivers Expressions of Interest, Table 2 (last updated 11 September 2026); Bridging the Gap position from the Trading Strategy Addendum 2026-27 (as at 30 June 2026).

Rows are ordered by LTDLE volume offered. For catchments marked "potential opportunities" DCCEEW states that further assessment of environmental benefits, socio-economic considerations and value for money would be required before progression.

Nominal volume and LTDLE are different measures. Nominal volume is the entitlement volume shown on the licence. Long-term diversion limit equivalence (LTDLE) converts that entitlement to its long-term average annual contribution to the SDL, using factors that vary by water source and water type. DCCEEW assesses recovery in LTDLE terms. This is why the Gwydir and NSW Border Rivers bands are lower in LTDLE than in nominal terms, and why supplementary and general security entitlements contribute less per megalitre than high security.

NSW LTDLE factors were updated in October 2025 and June 2026 as Water Resource Plans progressed through accreditation, and DCCEEW indicates further changes may occur. An entitlement's LTDLE value, and therefore its value to the Commonwealth, should be treated as subject to revision until the relevant plan is accredited.


Two Commonwealth purchase pathways

Two separate processes operate across these catchments. They have different legal bases, volumes and timing, and which one applies depends on the catchment.

450 GL pathway

  • Purpose: additional environmental water towards the 450 GL target
  • Status: EOI closed April 2026; interest published 11 September 2026; no purchase decision made
  • Volumes: not fixed, and likely well below the volumes offered
  • Timing: selling window to December 2027

Bridging the Gap pathway (SDL tenders)

  • Purpose: close the remaining gap to the Sustainable Diversion Limits
  • Status: 9.0 GL/y remaining across five catchments at 30 June 2026
  • Volumes: fixed per catchment, bought through open and limited tenders
  • Timing: staged tenders to mid-2027

Catchments with a remaining gap to be bridged (as at 30 June 2026)

Map of the Murray-Darling Basin catchments showing the remaining gaps to be bridged as at 30 June 2026: Condamine-Balonne 1.5 GL/y groundwater; NSW Border Rivers 3.7 GL/y surface water; Lower Darling 1.0 GL/y surface water; Lachlan 1.8 GL/y surface water; NSW Murray 1.0 GL/y surface water.

Figure 1: Catchments with a remaining gap to be bridged as at 30 June 2026. Source: DCCEEW, Strategic Water Purchasing Framework (Bridging the Gap) Trading Strategy Addendum 2026-27.

Table 3: Bridging the Gap status and gap volumes remaining (as at 30 June 2026)

Catchment Original 2023 target (GL/y) Updated target using NSW LTDLE factors (GL/y) Volume recovered (agreed to purchase) (GL/y) Gap remaining (GL/y)
Barwon Darling1.602.4Bridged
Condamine Balonne (surface water)141414.3Bridged
Condamine Balonne (groundwater)3.2 ²3.21.71.5 ³
Lachlan0.92.70.91.8
Lower Darlingn/a101.0
Namoi9.59.59.5Bridged
NSW Border Rivers5.15.41.73.7
NSW Murray101110.11.0
ACT4.94.94.9Bridged
Total49.251.745.5 ⁴9.0

All volumes are LTDLE GL/y. Source: DCCEEW, Strategic Water Purchasing Framework (Bridging the Gap) Trading Strategy Addendum 2026-27, Table 1.

1. Original targets as set out in the Strategic Water Purchasing Framework (2023).
2. Target comprises 0.25 GL/y in the Upper Condamine Alluvium (Central Condamine Alluvium) and 2.95 GL/y in the Upper Condamine Alluvium (Tributaries).
3. Gap remaining is in the Upper Condamine Alluvium (Tributaries) only.
4. There may be differences due to rounding; includes some over-recovery. Gaps in the NSW Murray, Lower Darling and Lachlan have arisen only through changes in NSW LTDLE factors. DCCEEW is considering SDLAM reconciliation outcomes and over-recovered volumes in its assessment of the NSW Murray and Lower Darling requirements.

Indicative tender key dates

Dates published by DCCEEW for purchasing activities to commence. They are indicative only.

September – October 2026
NSW Border Rivers (Bridging the Gap)
Surface water. 3.7 GL/y LTDLE remaining.
October – December 2026
Qld Condamine–Balonne groundwater (Bridging the Gap)
Upper Condamine Alluvium Tributaries. 1.5 GL/y LTDLE remaining.
November 2026 – March 2027
NSW Lachlan (Bridging the Gap)
Surface water. 1.8 GL/y LTDLE remaining. Not part of the Northern Basin EOI.
To December 2027
Northern Basin EOI window (450 GL)
Any purchase program arising from the EOI would follow Ministerial consideration under section 86ADB.

Source: DCCEEW, Trading Strategy Addendum 2026-27 (Tender key dates); Restoring Our Rivers Expressions of Interest page.


Sources

DCCEEW, Restoring Our Rivers Expressions of Interest (last updated 11 September 2026).

DCCEEW, Strategic Water Purchasing Framework and Trading Strategy Addenda (2023; 2024-25; 2025-26; 2026-27).

DCCEEW, Voluntary Water Purchase Program for the 450 GL, including the Progress update table and section 86ADB decision records.

AusTender, where contracted purchases are published.

This page summarises published Commonwealth material as at 14 September 2026 and is general information only. It does not constitute financial, legal or taxation advice. Figures are as published by DCCEEW and are subject to change as Water Resource Plans are accredited and LTDLE factors are updated.

crosscross-circle