Rules and restrictions

A number of rules and restrictions govern the trading and transfer of water rights. These rules are established under regulation by Australian government, state and territory governments, through inter-governmental bodies and agreements and by private irrigation organisations. These rules can act to both facilitate and restrict trade. They relate to changes in location/ownerships of water entitlements, water allocations, irrigation rights, water delivery rights and the circumstances under which these rights can be traded.

The rules and restrictions are established through a variety of administrative instruments. All states and territories have underlying legislation that provides a legal basis for the establishment, administration and/or enforcement of rules and restrictions.

The list below summarises the sources of rules and restrictions in each of states and territories and also rules operating across jurisdictional boundaries. For further information click the links below or seek advice from your local water authorities.

Rules for water trading in the Murray-Darling Basin are currently being reviewed as part of the Murray-Darling Basin Plan development. For further details see the Murray-Darling Basin Authority's web site . This section will be expanded once the Murray-Darling Basin Plan is finalised.

At the bottom of the page is a quick reference table summarising some key water trading restrictions in operation across Australia.

Administrative Instruments

Cross-border

• Intergovernmental Agreement on a National Water Initiative 
•  Murray Darling Basin Agreement- Schedule E (PDF - 136 KB) 
• Water Act 2007 
• Water Amendment Act 2008 
• Water Regulations 2008 
• Water market rules and water charge (termination fees) rules 

New South Wales

• Water Management Act 2000 
• NSW Water Act 1912 
• Access Licence Dealing Principles Order 2004 
•  Murray Irrigation Ltd - Water Entitlements Contract (PDF - 560 KB) 
• Murray Irrigation Transfer Rules Policy 2010 (available on request from the organisation)
•  Water and Delivery Entitlement Permanent and Temporary Transfer, Assignment and Conversion Policy (PDF - 81 KB) 
• Water sharing plans for NSW 

Victoria

• Water Act 1989 
• Water trading policies and water licensing policies 
• Goulburn-Murray Water groundwater management plans 
• Goulburn-Murray Water streamflow management plans 
• Grampians Wimmera Mallee Water groundwater information 
• Southern Rural Water groundwater management plans 
• Southern Rural Water streamflow management plans 
• Melbourne Water streamflow management plans 

Queensland

• Water Act 2000 
• Water resource planning 

South Australia

• Natural Resources Management Act 2004 
• Adelaide and Mount Lofty Ranges Water Allocation Plans
• Baroota Water Allocation Plan
• Clare Water Allocation Plan
• Eyre Peninsula Water Allocation Plans
• Murray-Darling Basin Water Allocation Plans 
• South Australia Arid Lands Water Allocation Plans
• South East Water Allocation Plans
•  CIT's Permanent Water Trade Fact Sheet with new domestic policy (Jan 2010) (PDF - 70 KB) 

Western Australia

• Rights in Water and Irrigation Act 1914  
• Rights in Water and Irrigation Regulations 2000 
• Water Allocation Plans 

Tasmania

• Water Management Act 1999 
• Irrigation Clauses Act 1973  

Northern Territory

• Water Act 2009 
• Alice Springs Water strategy 
• Ti Tree Water Allocation Plan 
• Katherine/Tindal Water Allocation Plan 

Australian Capital Territory

•  Water Resources Act 2007 (PDF - 299 KB) 
•  Water Resources Regulation 2007 (PDF - 57 KB) 

Water trading restrictions quick reference table - major rules

The below table provides examples of some major water trading restrictions in operation across Australia. This is not an exhaustive list of rules and restrictions, but a summary of major rules only. For more information about these or other rules or restrictions refer to the administrative instruments above.

Examples of trading rules

Trading rule	Relates to	Product impacted	Description	NSW	Vic	Qld	SA	ACT	WA	Tas	NT
4% trade-out limit	Volume	Entitlement	Annual threshold that restricts the volume of water access entitlements that can be traded permanently out of an irrigation district. It is intended that the cap will be phased out from July 2011 and completely removed by 2014		Vic 4% report
Allocation limit	Environment	Allocation	Amount of water that can be made available for consumptive use in a particular defined area or water resource under the rules specified in the water resource plans. This affects the volume of water available for trading.
				Refer to the allocation announcements in Water allocations and rules specified in the Water Resource Plans in Water trading rules below
Basin cap	Environment	Allocation	Applies a limit on the amount of water that can be diverted from the Murray-Darling river system for consumptive uses (agricultural, industrial or domestic purposes). This limit impacts the amount of water available for consumptive use, hence the water available for trading.
				The Cap is managed in accordance to the rules specified in Schedule E of the Murray–Darling Basin Agreement which is Schedule 1 of the Water Act 2007.
Barmah Choke	Physical	Allocation	The Barmah Choke imposes a channel capacity constraint to the volume of water that can be supplied to the lower reaches of the River Murray (limit on upstream water to be traded downstream). The channel is narrow and the maximum flow that can pass through is about 8,000 ML per day.
Connectivity of the water systems	Physical	Allocation	Water can only be traded between water supply schemes that are hydrologically connected.
				Refer to Water resources for information on the water systems and see the relevant administrative instruments for your jurisdiction below.
Carryover arrangements	Volume	Allocation	This is the maximum amount of unused water that can be carried over from one year to the next within specified limits, usually subject to volume and time limits as well as usage restrictions. This may be useful in helping water users plan their water requirements or sell their excess water.	Carryover rules are specified in the water resource plans for each state and territory.