Water trading

Australia can legitimately be seen as a world leader in the market-based allocation and management of scarce water resources.

The development of water markets, particularly in the Murray–Darling Basin has been a major success story in water policy over the last 20 years and has delivered benefits valued in the hundreds of millions of dollars a year.

Our detailed knowledge of the structure, institutions and rules governing water trade and the economic drivers of trade in the Murray-Darling Basin is exceptional. Our advice on the design and operation of trading markets is founded on the need to integrate relevant institutional arrangements (such as where individual trades are reconciled with wholesale water accounting between States) with hydrological realities.

 This knowledge base has been developed through our team’s involvement in numerous projects over more than a decade. Frontier Economics has played a leading role in the analysis of the economic and social impacts of water trading and the development of policy and regulatory regimes to support effective water markets while protecting environmental outcomes.

We have an extensive network of contacts at all levels of water markets including the Commonwealth and State governments, water authorities, industry representatives, environmental managers/traders, brokers, individual irrigators and water market investors.

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