Long-term leasing offers certainty and security for both buyers and sellers.

• As a lessor (entitlement owner): You receive a guaranteed return for a fixed term while retaining ownership of the entitlement.
• As a lessee (buyer): You can secure water long-term at a known price and receive the same benefits as a permanent entitlement holder (e.g., carryover, uncontrolled or supplementary flows). Unlike the temporary market, a long-term lease locks in a fixed price, protecting you from fluctuations in the spot market.

There are a range of lease-back options available:

Option 1: Standard long-term lease

In this arrangement, the lessor retains ownership of the water entitlement and leases it out for a specified term at an agreed price.

The lessee gains full access to the entitlement and its benefits (e.g., carryover, uncontrolled or supplementary flows) for the lease period and receives all seasonal allocations tied to the entitlement.

Option 2: Sale and lease back

In this type of agreement, the water entitlement holder permanently sells their entitlement to another party but leases the water back for a set period at an agreed price.

The seller receives the full sale proceeds upfront and pays an annual rental to access the water rights for the lease term. The seller also gains access to the entitlement’s benefits (e.g., carryover, uncontrolled or supplementary flows) and seasonal allocations during the lease.

Option 3: Own and lease out under certain conditions

Here, the water entitlement holder retains ownership but is obligated to lease the entitlement under pre-agreed conditions (e.g., specific climatic conditions or allocation announcements) and payment terms. An example of this is Waterfind’s Water Future Efficiency Program.

This option could involve an upfront payment by a potential lessee for the right to access the entitlement if certain agreed conditions are met in the future.