WATER TRADING ELEMENTS
Water Licence
A water licence stipulates how much water can be taken out of a river system, and is often aligned with a property.
Allocations
Currently, Government appointed Water Authorities allocate the amount of water that can be taken from a river system as a percentage.
Compliance
Government appointed Water Authorities provide specific trading rules that govern licence in relation to their licences.
Water User Needs
Water users identify specific volumes of water that they require for the irrigation season.
Water Markets
Water markets facilitate the trading of water between two parties. Waterfind provides the most extensive water markets in Australia.
TEMPORARY | PERMANENT | FORWARD
There are different types of water trade which are explained, including:
- TEMPORARY WATER TRADE
- PERMANENT WATER TRADE
- FORWARD WATER TRADE
WHAT IS A TEMPORARY TRADE?
TEMPORARY WATER TRADE
A temporary transfer is a transfer of water specifically for the irrigation season.
Although temporary transfers are solely transfers of allocation between New South Wales and Victoria, Queensland and South Australia both have the means of transferring an entitlement on a temporary basis, whereby the water is transferred for the current irrigation season and the purchaser is the beneficiary of any increase in allocation from the date of the transfer.
Although temporary transfers are solely transfers of allocation between New South Wales and Victoria, Queensland and South Australia both have the means of transferring an entitlement on a temporary basis, whereby the water is transferred for the current irrigation season and the purchaser is the beneficiary of any increase in allocation from the date of the transfer.
WHAT IS A PERMANENT TRADE?
PERMANENT WATER TRADE
Similar to the sale of land, a transfer of permanent water is the transfer of the water entitlement to the purchaser on a permanent basis.
The purchaser will retain the parcel and receive any allocation granted upon it from the date of the transfer indefinitely or until the time at which they sell the entitlement.
The purchaser will retain the parcel and receive any allocation granted upon it from the date of the transfer indefinitely or until the time at which they sell the entitlement.
WHAT IS THE FORWARD MARKET?
THE FORWARD MARKET
The Forward Water Market is a mechanism which enables clients to plan for future irrigation requirements thus removing uncertainty around their requirements. Waterfind's unique and innovative Forward Water Market is an extension of the current spot market, enabling the contracting of temporary or permanent water parcels at a set price to be delivered at a future date, to be determined by the seller and purchaser.