About trade
The department's Water Group is responsible for formulating policy related to the trade of water licences, while Water NSW manages the trading of water access licences, licence entitlements and water allocations.
This section contains information about policies and market research relating to water trading in NSW.
Why trade water licences?
Water licences are a valuable asset.
In water-sharing plan areas, you can trade water access licences, licence entitlements and water allocations. These trades are referred to as ‘dealings’.
Trading helps you to manage your water requirements to suit your needs.
Statistics about trading in your area are available on the NSW Water Register.
Foreign ownership of water licences
Foreign owners may need to register their interest in certain water assets. The Register of Foreign Ownership of Water Entitlements (Water Register) gives information on foreign ownership of Australia’s water entitlements. The Commissioner of Taxation publishes annual reports on foreign ownership of water.
Trade dashboard
Data visualisation tool to analyse volumes and prices of water allocations and entitlements being traded.
Change to trade of Domestic and Stock (Stock) licence allocations due to the drought
The ALDP amendment order will allow for trade of water allocations but will only apply to licensed stock use. Find out more.
Review of inter-valley trade from the Peel to Lower Namoi
The department commissioned an independent review of the issues and options for trade from the Peel to the Lower Namoi. Read the report.
Water market reform
The Australian Competition & Consumer Commission (ACCC) were directed by the Commonwealth Government in August 2019 to conduct an inquiry into water markets in the Murray–Darling Basin.
Roadmap for water market reform
The Commonwealth Government has engaged an independent Principal Adviser to work with Basin states, industry, communities and other stakeholders to develop a phased, practical, and cost-effective plan for water market reform having regard to the findings and recommendations made by the ACCC.
The NSW Government is working closely to support the Principal Adviser in developing a roadmap for water market reform by June 2022.
For more information on Commonwealth Market Reform.
Public consultation
The department held a webinar on 23 April 2021 to provide an update on the ACCC inquiry and the recommendations made in the Final Report. Stakeholders were also invited to provide submissions with their views on the recommendations.
ACCC's Final Report – March 2021
The Final report was released by the ACCC on 26 March 2021. An eight-page Guide to the final report, which summarises the ACCC’s findings and recommendations, is also available.
The report makes a number of recommendations to enhance markets for tradeable water rights, including their operation, transparency, regulation, competitiveness and efficiency.
The department has been consulting with stakeholders and water management agencies to consider the costs, benefits and priorities of the recommendations to ensure any reform is targeted, proportionate and sustainable. This information will inform how the NSW Government engages with the development of the roadmap.
Read about the recommendations to enhance markets for tradeable water rights, including their operation, transparency, regulation, competitiveness and efficiency.
ACCC's Interim Report – July 2020
An Interim report was released by the ACCC in July 2020, which identified a range of options to improve the transparency and operation of these markets. The NSW Government made a high-level submission (PDF, 360.27 KB) in response to the interim report in August 2020.
To help inform this submission, the department engaged a consultancy firm to undertake an independent review (PDF, 1121.6 KB) of the interim options proposed by the ACCC. The department also prepared preliminary comments (PDF, 633.34 KB) on each of the individual options.
This interim report draws upon analysis of comprehensive water market data from 2012 onwards, and the views of a broad range of people with interests in the use and trade of water in the Basin.
Consultation on water market transparency in NSW
Transparency in the water market provides certainty and confidence to water users that markets are operating effectively in accordance with water sharing rules.
In 2018, we sought community feedback on water trading transparency. Find out what we heard (PDF, 674.69 KB) from the community 2018.
Since then, we have developed water market information platforms, such as WaterInsights Portal and Trade Dashboard to help improve access to water market information.
From 30 November 2020 to 1 February 2021, we invited the community to provide feedback on all of our water market information platforms to understand what information we should be sharing and how we can make our platforms easier to use.
We received 177 completed surveys and 37 written submissions.
- Download the discussion paper (.PDF 481KB)
- Download the report (.PDF 157KB)
- See data collected from the survey
- Watch the webinars
Related information
On 4 December 2020 the Australian Treasurer requested the Productivity Commission (PC) to undertake a review into the effectiveness of the Register of Foreign-owned Water Entitlements.
To assist with the review, we intend to share the feedback from our water transparency consultation with the PC.
The PC review is due to be completed on 7 December 2021.
For further information, visit Productivity Commission.
Trade of water allocations by local water utilities
When a local water utility applies to WaterNSW to trade water allocations from its water access licence, WaterNSW refers the utility’s application to the department for specialist advice.
For more information about the application process, view the fact sheet Trading water allocations by local water utilities (PDF. 365KB).
To provide additional information with an application to assign (trade) water allocation by local water utilities download this form.
Local water utilities to provide additional information form
The purpose of this form is to help local water utilities provide the information the department needs to assess your application to trade water allocations. When we assess your application, we must consider the specific rule in clause 17(5) and 19(5) of the Access Licence Dealing Principles Order 2004.
These questions relate to the access licence from which you are proposing to trade water allocations.
Water markets in NSW
The Water Markets in New South Wales report (PDF, 5907.83 KB) is a NSW-first in-depth analysis of the emerging water market. The report highlights the development of the market since its inception and opportunities for both Government and the water industry to drive further growth.
Aither's presentation is a summary of the report and key report findings.