Simplifying Complexity: A Framework for the ...4.2 Water entitlements in regulated surface water system 9 4.3 Irrigation entitlements in regulated surface water system 11 5 Opportunities

Simplifying Complexity: A Framework for the Rationalisation of Water Entitlements in the Southern Connected River Murray System Tian Shi Policy and Economic Research Unit, CSIRO Land and Water

CSIRO Land and Water Technical Report 03/05 March 2005

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Cover Photograph: From CSIRO Land and Water Image Gallery: www.clw.csiro.au/ImageGallery/ File: CSA_AGR001_004.jpg Description: Murrumbidgee River with lucerne and wheat crops near Wagga Wagga, NSW. 1999 Photographer: Gregory Heath © 2005 CSIRO

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Simplifying Complexity: A Framework for the Rationalisation of Water Entitlements in the Southern Connected River Murray System Tian Shi Policy and Economic Research Unit, CSIRO Land and Water

CSIRO Land and Water Technical Report 03/05 March 2005

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Acknowledgements

The ideas contained in this report have resulted from over two years research and the opportunities to discuss with many of Australia’s leading natural resource managers and researchers. In particular, I would like to acknowledge and thank my colleagues Mike Young and Jim McColl for their passion about water policy and water reform and their influence on the development of my ideas (especially on issues of water entitlement arrangement and water trading) at different stages of this research. This final report has also benefited from detailed comments and suggestions received from several reviewers. In this respect, I would like and in alphabetical order to thank: Kim Alvarez, Henning Bjornlund, Gerry Davies, John Howe, Tom Rooney, Louise Rose, Ian Wills and John Ward.

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Executive Summary Water entitlement and water allocation reform is now a key concern on the national and state policy agendas. As part of this process, administrators are searching for ways to remove unnecessary barriers to water trading and therefore reduce the transaction costs associated with trade.

This report attempts to inform readers about the challenge of this task by revealing some of the complexity of current arrangements. If ways can be found to simplify these arrangements and to remove unnecessary barriers – it may be possible to reduce the transaction costs associated with water entitlement and allocation trading.

As a result, more efficient investment and more wealth generation can be expected and, if well designed, the result could also be a significant improvement in environmental outcomes.

How many types of entitlements are there? In this report, a classification system is developed to identify the number of entitlement types in the Southern Connected River Murray System encompassing parts of New South Wales (NSW), Victoria (Vic) and South Australia (SA). A type of water entitlement is most easily identified by asking whether or not a trade involves only a change to the entitlement ownership. If other changes have to be made, for example, to

• the allocation pool that the water is drawn from, or

• the management zone or region where the water is held,

then the trade involves conversion from one type of entitlement to another type of entitlement.

When considering only the regulated surface water system, a total of 438 types of water entitlements can be identified:

• 132 types of regulated surface water entitlements in NSW;

• 191 types of regulated surface water entitlements in Vic; and

• 115 types of regulated surface water entitlements in SA.

Many of these entitlement types are used for urban and country town water supplies, industrial and environmental purposes. Most of them are not yet tradeable.

From an irrigation perspective, when consideration is given to supply reliability, entitlement tradability, allocation tradability, tenure, access priority and use restrictions associated with issues such as salinity, 183 types of irrigation entitlements can be identified.

Table A provides an overview of the 39 categories of water entitlements in the Southern Connected River Murray System.

Tradability matrices Across Australia, opportunities to permanently trade water entitlements and to temporarily trade water allocations are increasing. When an entitlement is traded between allocation pools or between management zones, the entitlement must be converted from one type to another. To simplify this process water brokers are constructing tradability matrices that show whether or not a trade of entitlement is allowed and, if so, what changes have to be made to the entitlement to complete that trade.

A full tradability matrix for 183 types of irrigation entitlements in the Southern Connected River Murray System would contain 33,306 matrix elements. For a number of reasons (e.g., a lack of sufficient hydraulic connectivity, the flow constraint through the Barmah Choke, and policy restrictions on trade), many entitlements cannot be converted from one type to another. In reality, the tradability matrix for irrigation entitlements in the Southern Connected River Murray System allows around 3,700 possible trades.

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With so many trading possibilities, there is a risk that changes could create opportunities for arbitrage. Arbitrage occurs when an entitlement is traded in a manner that increases one person’s share of the water at the expense of other entitlement holders. Simplification of the system could significantly reduce the arbitrage opportunities and transaction costs associated with water trading.

Table A. Overview of existing 39 categories of water entitlements in the SCRMS

System NSW Victoria SA

Domestic & stock access licence Domestic & stock right Stock & domestic licensed allocation

Local water utility access licence Town water supply Metropolitan water licensed allocation

High security access licence Supply by agreement Country town water licensed allocation

Conveyance access licence Water right Industrial licensed allocation

Environmental water access licence Diversion licence Recreational & environmental licensed allocation

Indigenous cultural access licence Sales water * Irrigation licensed allocation

General security access licence Wetlands licensed allocation Reg

ulat

ed s

urfa

ce w

ater

(22)

Supplementary water access licence Water (holding) licensed allocation

Domestic & stock access licence Direct pumping licence

Local water utility access licence Winter fill licence

Unregulated river access licence Farm dam licence

Runoff harvesting access licence

Indigenous cultural access licence

Unr

egul

ated

sur

face

wat

er

(9)

Research access licence

Local water utility access licence Groundwater licence Water (taking) licensed allocation

Aquifer access licence Groundwater licence (irrigation) Water (holding) licensed allocation

Ent

itlem

ent C

ateg

orie

s (3

9)

Gro

und

w

ater

(8)

Supplementary water access licence Groundwater licence (non-irrigation)

Note: * For the purpose of classification and as the Victorian Government White Paper has proposed to make sales water into a separate, legally recognised, and independently tradable entitlement. In this report all sales water is identified as a separate category of water entitlement.

Opportunities to simplify the system The large number of water entitlements makes the trading processes administratively complicated and confusing. Conceptually, with more consistent definitions of water entitlements and simplified trading arrangements, transaction costs will be lower there will be fewer opportunities for arbitrage. One of the biggest challenges is to sequence any rationalisation process so that water entitlements reform occurs in a manner that does not destroy system functionality.

Significant opportunities to improve irrigation entitlement arrangements include:

• Introducing standard terminology;

• Unbundling use restrictions and obligations, including those associated with salinity management, from entitlement and allocation arrangements;

• Standardising the tenure, trading restrictions and other similar arrangements;

• Converting existing entitlements into one or more standardised entitlements; and

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• Rationalising zone boundaries so that they are constrained only by hydrological considerations.

All the above opportunities could help reduce transaction costs and simplify river management. If pursued properly one could expect greater productivity and less conflict among communities.

A case study To illustrate the potential of these opportunities, the report contains a case study of the Northern Victoria and NSW River Murray regulated surface water system. When the above opportunities are pursued, it becomes clear that:

• Previous 24 trading zones can be rationalised into 22 trading zones; and

• Previous 62 types of irrigation entitlements can be simplified into 10 types.

Application to the entire system Different types of water entitlements can be ranked and then grouped together according to similar attributes (i.e., supply reliability, tradability, tenure, etc). One option is to modify the size of each pool so that entitlement reliability is similar. For example, in terms of supply reliability, different types of irrigation entitlements can be separated into three classes, i.e., Class I (high reliability 91-100%), Class II (medium reliability 61-90%) and Class III (low reliability 0-60%) (see Table B).

Table B summarises the nature of opportunities available. As indicated in this report, one cannot escape hydraulic realities but there are many opportunities. If states can standardise across boundaries, the number of entitlement types could be reduced significantly.

Table B. Three classes of irrigation entitlements in the SCRMS

Entitlement Category (total 9) Entitlement Type Entitlement Class NSW Vic SA NSW Vic SA

Total

Class I (high

reliability 91-100%)

High security Water right

Diversion licence

Stock & domestic

Irrigation

Water (holding)

10 36 21 67

Class II (medium reliability 61-90%)

General security Diversion licence NA 10 5 NA 15

Class III (low

reliability 0-60%)

Supplementary water Sales water NA 10 20 NA 30

Sub-total 3 3 3 30 61 21 112

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Table of Contents

Acknowledgements ii Executive Summary iii

How many types of entitlements are there? iii Tradability matrices iii Opportunities to simplify the system iv A case study v Application to the entire system v

Simplifying Complexity: A Framework for the Rationalisation of Water Entitlements in the Southern Connected River Murray System 1

1 Introduction 1 1.1 Current water entitlements arrangements 1 1.2 NWI challenges states to align existing water entitlement systems 1

2 Scope and Purpose of This Report 2 3 Overview of Water Licensing Arrangements 3

3.1 Approaches to water allocation and supply reliability 3 3.1.1 Water legislation 3 3.1.2 Specifying entitlements 5

3.2 Specifying allocations 5 3.3 Other key attributes 5 3.4 Overview of water entitlements in the SCRMS 6

4 Classification framework 8 4.1 Elements of the framework 8 4.2 Water entitlements in regulated surface water system 9 4.3 Irrigation entitlements in regulated surface water system 11

5 Opportunities to Simplify Irrigation Entitlements Arrangements 18 5.1 A case study of simplifying irrigation entitlements arrangements 18

6 Application of Simplification Opportunities to the SCRMS 22 6.1 Introducing standard terminology 22 6.2 Reducing water entitlement and trading arrangements complexity 22 6.3 Unbundling 23

7 Standardisation opportunities 24 7.1 Rationalising supply reliability and access priority 25 7.2 Rationalising tenure 26 7.3 Merging allocation pools 26 7.4 Converting sales and supplementary water 26

8 Issues For Further Study 26 8.1 Recognising allocation pool limits 26 8.2 Assessing the impacts of water trading 27

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8.3 The dynamic relationships between water trading and supply reliability 27 8.4 Balancing the private and public interests 27

9 Concluding Remarks 29 References 30

Appendix 1. A brief comparison of water use in three States .................................................. 31 Appendix 2. Major legal framework in three States ................................................................. 32 Appendix 3. Seasonal water allocations in three States.......................................................... 33 Appendix 4. Ranking 112 types of irrigation entitlements by supply reliability, tradability, tenure

and access priority............................................................................................................35 Appendix 5. Grouping 9 categories and 112 types of irrigation entitlements into 14 groups... 39 Appendix 6. Fourteen groups of irrigation entitlements in the SCRMS ................................... 40

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List of Figures, Tables and Maps

Figure 1. Water act and water licensing in three states............................................................. 4 Figure 2. Existing 22 categories and 438 types of regulated surface water entitlements

in the SCRMS ............................................................................................................ 8 Figure 3. A schematic diagram of Murrumbidgee, Murray and Goulburn irrigation systems... 28

Table 1. Existing 39 categories of water entitlements in the Southern Connected River Murray System ................................................................................................... 7

Table 2. A classification framework to assist in identifying the number of types of water entitlements in the SCRMS.......................................................................................... 9

Table 3. Existing 22 categories of entitlements 1 in regulated surface water system .............. 10 Table 4. A summary of state approaches to regulated surface water allocation ..................... 12 Table 5. Major 9 categories and 183 1 types of irrigation entitlements in regulated surface

water of the SCRMS .................................................................................................. 14 Table 6. Tradability matrix for irrigation entitlements in regulated Northern Vic and NSW

River Murray surface water........................................................................................ 20 Table 7. A simplified irrigation entitlements and trading zones arrangement for regulated

Northern Vic and NSW River Murray surface water .................................................. 21 Table 8. A comparison of terminologies used in three states .................................................. 22 Table 9. Three classes of irrigation entitlements in the SCRMS ............................................. 25 Table 10. Classification of 14 irrigation entitlement groups in the SCRMS into three

classes ..................................................................................................................... 25

Map 1. Southern Connected River Murray System and 10 main irrigation regions................... 3 Map 2. Water trading/salinity impact zones in Northern Vic and NSW River Murray

regulated surface water system................................................................................... 19

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Simplifying Complexity: A Framework for the Rationalisation of Water Entitlements in the Southern Connected River Murray System

The best explanation is as simple as possible, but no simpler.

– Albert Einstein

1 Introduction

1.1 Current water entitlements arrangements Australian water administrators are being called upon to develop a nationally compatible water entitlement register coupled with trading arrangements that minimise transaction costs. By 2007, institutional and regulatory arrangements are required to be in place to facilitate “intra and interstate trade, and manage differences in entitlement reliability, supply losses, supply source constraints, trading between systems, and cap requirements and to develop arrangements to facilitate effective and efficient water trading on the markets” (COAG 2004a).

While at the highest level water entitlement arrangements seem similar, when one delves into the detail a large variety of arrangements prevail across the Murray-Darling Basin (MDB).

Among states and even within a state, supply reliability varies, tenure periods are inconsistent, and the degree of protection given to registered interests and restrictions on trade vary considerably. The terms used also vary with one another. For example, in South Australia a water entitlement is called an allocation, while in Victoria and NSW an allocation is the amount of water received annually by an entitlement holder. In Victoria entitlements are called water rights or diversion licences while in NSW they are called water access licences.

1.2 NWI challenges states to align existing water entitlement systems At a COAG meeting on 25th June 2004, the Commonwealth, the ACT, Queensland, NSW, Victoria, SA and the Northern Territory agreed to adopt a National Water Initiative (NWI).1

According to the NWI, a consistent and compatible water entitlements system will be developed to:

• facilitate the operation of efficient water markets and the opportunities for trading, within and between States and Territories, where water systems are physically shared or hydrologic connections and water supply considerations will permit water trading;

• minimise transaction costs on water trades (e.g., through good information flows in the market and compatible entitlement, registry, regulatory and other arrangements across jurisdictions); and

• enable the appropriate mix of water products to develop based on access entitlements which can be traded either in whole, or in part, and either temporarily or permanently, or through lease arrangements or other trading options that may evolve over time.

As a result, the water access entitlements and planning framework will:

1 Strictly speaking, the NWI consists of two agreements. One covers water allocation and management in all States and Territories, the other addresses over-allocation and environmental objectives in the Murray-Darling Basin (COAG 2004a,b).


• enhance the security and commercial certainty of water access entitlements by clearly specifying the statutory nature of those entitlements;

• be compatible across jurisdictions (in the case of water access entitlements) to improve investment certainty, be competitively neutral and to minimise transaction costs on water trades (where relevant); and

• reflect regional differences in the variability of water supply and the state of knowledge underpinning regional allocation decisions.

The NWI has recognised the importance of establishing a nationally compatible system of water access entitlements to manage surface and groundwater resources for rural and urban use that optimises economic, social and environmental outcomes. It has set out a vision and proposed that water entitlement arrangements should be consistent and compatible. However, more research is needed to articulate the issues on compatible water entitlements arrangements.

2 Scope and Purpose of This Report

Given the requirements of the NWI, this report focuses on water entitlement arrangements in the Southern Connected River Murray System (SCRMS) as indicated in Map 1. This region comprises a set of linked river systems and associated groundwater systems in southern NSW, northern Vic and eastern SA.2 The SCRMS is essentially a winter rainfall system, where water systems are either physically shared and/or hydraulically connected. It does not include the Mallee River system in Victoria and the Lachlan River system in NSW as significant volumes of water from these systems rarely flow into the River Murray.

The purpose of this report is to develop a framework for the classification of existing entitlements by essentially grouping them according to similarity and compatibility. The underpinning hypothesis for this work is that in a policy environment where trading is encouraged, variation in the way entitlements are defined increases transaction costs. The corollary of this hypothesis is that the more consistent entitlement definitions and the more simplified trading arrangements can be, the lower transaction costs and less arbitrage opportunities will be. As a result, the efficient and effective water markets will be achieved and if appropriate environmental arrangements are in place, the greater benefits of water use will be realised.

2 It consists of the River Murray, Lower Murray, Angas Bremer, and five pipeline systems (i.e., Morgan to Whyalla, Swan Reach to York Peninsula, Mannum to Adelaide, Murray Bridge to Onkaparinga and Tailem Bend to Keith) in South Australia; the Darling River and its Ana Branch below the Menindee Lakes, the River Murray itself, the Murrumbidgee system in NSW; and seven Victorian tributaries (i.e., Upper Murray, Kiewa, Ovens, Broken, Goulburn, Campaspe and Loddon) except those in the Mallee (Young and McColl, 2003).


Map 1. Southern Connected River Murray System and 10 main irrigation regions

Source: Meyer et al., 2004

3 Overview of Water Licensing Arrangements

3.1 Approaches to water allocation and supply reliability Irrigation development and water licensing arrangements in Australia have been largely developed on a regional basis and with little expectation that there could be advantages in having a highly standardised approach. There is much variability. In most, if not all, cases, many attributes of water entitlements are only partially specified. As a result, it is not surprising that detail underpinning licence arrangements is inordinately complex.

3.1.1 Water legislation Figure 1 provides a high level summary of the mechanisms used to allocate and manage water in three jurisdictions of the SCRMS. Essentially, the Water Acts issue licences to people to access and use water, and require the construction of necessary works to do this.


Figure 1. Water act and water licensing in three states

Water

Management Act 2000 (NSW)

Access licences

Statutory rights

Environmentalwater

Basic landholder

rights Private drainage districts

Private irrigation districts

Irrigation corporations

(bulk licences)

Works & use approvals 1

DIPNR 2

Water sharing plans

Notes: 1. Access licences are separated from works and water use approvals that provide a permit to extract and use water. An access licence does not give the right to use that water for any particular purpose (this will require a “water use approval”), or to build any of the works that may be physically required to extract the water (this will require a “water supply work approval”).

2. Department of Infrastructure, Planning and Natural Resources.

Water Act 1989 (Vic)

Bulk entitlements

Statutory rights

Harvest rainwater

Primary entitlements (water rights, take & use licences) 1

Rural water authorities

Works approvals

DSE 2

Notes: 1. Right to access/take and right to use water are not separated. In the case of the Melbourne and Metropolitan Board of Works, under the Melbourne and Metropolitan Board of Works Act 1958.

2. Department of Sustainability and Environment.

Water

Resources Act 1997 (SA)

Licensed right (prescribed

water)

Unlicensed statutory right

(non-prescribed water)

Landholder unlimited water use

Water licences (extraction limits &

use conditions) 1

Environmental water Government

owned irrigation districts

(water licence)

Private irrigation districts

(trust, bulk licences)

Construct permits (well,

dam, wall)

Water allocation plans

DWLBC 2 Provision

Notes: 1. In general, right to access/take and right to use water are not

separated. However, the SA Water Holding Licence enables licence holders to own water but not use it.

2. Department of Water, Land and Biodiversity Conservation.


3.1.2 Specifying entitlements At the most general level, entitlements are used to define access to pools of water. A variety of legislative, formal planning processes and administrative procedures are used to determine how much water per allocation unit is available to entitlement holders. By identifying the number of entitlement units issued and the degree of access priority assigned to each pool, it is possible to assess the “reliability” of each pool. Some plans go as far as to specify reliability in terms of the number of years in a 100 that entitlement holders should expect to receive their full allocation.

Typically, a sub-set of the pools has close to 100% reliability (e.g., stock & domestic, town water supply). In the past, stock and domestic users, for example, have been free to take and use as much water as they can for stock and domestic purposes. However, limits are now placed on the structures that may be built to aid the collection and extraction of water for these stock and domestic purposes. Often the policy mechanisms used to manage different uses are also quite different. Urban water users, for example, can be subject to water use restrictions that are not applied to rural water users.

Entitlements are, in effect, a formal assignment of a share of water available in a defined pool. By convention, the entitlement units are defined in megalitres. Allocations are then made on a pro-rata basis in proportion to the number of megalitres specified in an entitlement.

In recognition of the share nature of entitlements, NSW is in the process of converting all volume-based entitlements into unit shares.

3.2 Specifying allocations As with entitlements, each State has a different approach to the periodic assignment of allocations (see Appendix 3 for more details). All are influenced by conditions set out in the Murray-Darling Basin Agreement, statements about pool priority in State legislation, and rules set out in water and/or catchment plans.

Typically, quite different arrangements apply for groundwater and river systems and also to the management of urban and rural uses.

In times of severe shortage, legislation typically allows allocation commitments made in water sharing/allocation plans to be varied.

The actual reliability of a pool is defined in water use management plans and interstate agreements that set out the rules for allocating water to a pool. In NSW, for example, where the probability of entitlement holders receiving their full allocation is greater than 95% the entitlement is often described as a high security pool. All South Australian entitlements fall into this category, as do most of Victoria’s water rights and diversion licences.

One of the most striking differences is the arrangement that allows general security entitlement holders in the NSW Murray and Murrumbidgee systems, to carry forward unused allocation. However, they are only allowed to do this up to their maximum entitlement volume.

3.3 Other key attributes A large number of other conditions also apply to water entitlements. From a transaction cost perspective, critical attributes include:

• entitlement tenure;

• the degree of tradability of entitlements and of allocations;

• use conditions associated with the extraction and application of water to land; and

• expectations about obligations to contribute to the costs of infrastructure construction, operation and maintenance.

Trading arrangements are of critical importance to this report. As a result of the National Water Initiative, recent policy announcements are perhaps best described as in a state of flux.


Major arrangements under consideration include:

• the widespread use of water entitlement exchange rates (the rate of conversion that calculated and agreed to be applied to water traded from one trading zone and/or jurisdiction to another);

• water entitlement tagging for water trades (an accounting approach that allows a traded water entitlement to retain its original characteristics when traded to a new jurisdiction and/or trading zone, rather than being converted into a form issued in the new jurisdiction and/or trading zone);

• a system of trading zones to simplify administration; and

• trading rules to address resource management and infrastructure delivery considerations.

Another consideration is the nature of registries used to record entitlement details and interests in them.

3.4 Overview of water entitlements in the SCRMS When all water entitlements are considered according to the way they are defined in legislation, 39 categories of water entitlements can be identified in the SCRMS that are available for irrigation and other purposes. Excluding the ACT and as set out in Table 1, there are:

• 22 categories of regulated surface water entitlements;

• 9 categories of unregulated surface water entitlements; and

• 8 categories of groundwater entitlements.

This, however, is only a high level summary of water entitlement categories. If only considering regulated surface water system and, when supplies reliability, tradability, tenure, access priority and, also, use restrictions and conditions are taken into account, the number of water entitlement types expands to 438 (see Figure 2).

Entitlement trading is normally described as a “permanent” trade and allocation trading as “temporary” trade.3 When one accounts for the fact that entitlements and allocations can be traded separately, this suggests that if both entitlements and allocations were made fully tradeable, potentially there could be as many as 876 water products on the market at any time.

3 The reason for these names appears to be the fact that in the early stages of implementation, when water trading was in its infancy, allocation trades were implemented by “temporarily” transferring a water licence to someone else, allowing them to use the allocation attached to it and then returning the licence back to the original licence holder.


Table 1. Existing 39 categories of water entitlements in the Southern Connected River Murray System

System NSW Victoria SA a

Domestic & stock access licence b Domestic & stock right b Stock & domestic licensed allocation b

Local water utility access licence Town water supply Metropolitan water licensed allocation c

High security access licence Supply by agreement Country town water licensed allocation

Conveyance access licence Water right Industrial licensed allocation

Environmental water access licence Diversion licence Recreational & environmental licensed allocation

Indigenous cultural access licence Sales water d Irrigation licensed allocation

General security access licence Wetlands licensed allocation Reg

ulat

ed s

urfa

ce w

ater

(22)

Supplementary water access licence Water (holding) licensed allocation

Domestic & stock access licence Direct pumping licence

Local water utility access licence Winter fill licence

Unregulated river access licence Farm dam licence

Runoff harvesting access licence

Indigenous cultural access licence

Unr

egul

ated

sur

face

wat

er

(9)

Research access licence

Local water utility access licence Groundwater licence Water (taking) licensed allocation

Aquifer access licence Groundwater licence (irrigation) Water (holding) licensed allocation

Ent

itlem

ent C

ateg

orie

s (3

9)

Gro

und

w

ater

(8)

Supplementary water access licence Groundwater licence (non-irrigation)

Notes: a. In SA all entitlements are issued as a water licence with a defined purpose. A water licence must be endorsed with a water allocation and a clear distinction is made between water taking allocations and water holding allocations. Water holding allocations are tradable but cannot be used until they are converted to water taking allocations. Recognised water taking purposes include: stock & domestic, Metropolitan water supplies, country town water supplies, industrial, recreational & environmental, irrigation and wetlands.

b. In NSW and Victoria, rights to domestic and stock water allow access in most cases without the need of a licence. In SA, the exception applies to riparian users situated directly on the watercourse who can take limited amounts of water (i.e., 500KL) for stock and domestic use without a licence.

c. Under Schedule F of the Murray-Darling Basin Agreement, diversion of water for South Australia’s Metropolitan Adelaide and associated country areas must not exceed a total of 650 GL over any period of 5 years.

d. For the convenience to the research, and as the Victorian Government White Paper has proposed to unbundle Sales water into a separate, legally recognised, and independently tradable entitlement. In this report, Sales water is identified as a separate category of water entitlement. Under current arrangements, opportunities to apply for Sales water are attached to Water rights and Diversion licences and can be traded only with the entitlement. Water right and Diversion licence holders in the Sunraysia cannot apply for access to Sales water.


Figure 2. Existing 22 categories and 438 types of regulated surface water entitlements in the SCRMS

NSW regulated VIC regulated

SA regulated

132

191

115

86

80

20

40

60

80

100

120

140

160

180

200

Category Type

4 Classification framework

Many different classification frameworks have been used in an attempt to classify water entitlements. As summarised in Table 2, the classification framework chosen in this report was designed with a view to identifying similarities that would enable simplification and help identify opportunities for rationalisation. Theoretical as well as political considerations are taken into account. In particular, jurisdictional boundaries are respected.

Initially, we sought to find a hierarchical way to classify water entitlements but as we progressed, it became clear that what is really needed is a framework that enables exploration of the types of water entitlements from different perspectives. The framework is therefore designed to enable the identification of any type of entitlement.

Two water entitlements as being of the same type if a transfer involves only the clearance of any registered interests and a change to the name of the entitlement holder. If other entitlement specifications also need to be changed, then the transfer involves conversion of a water entitlement from one type to another.

4.1 Elements of the framework Using this definition, water entitlements are first grouped according to the nature of the supply system – whether or not the prime source is a regulated surface water system, an unregulated surface water system, a confined groundwater aquifer or an unconfined groundwater aquifer. Each of these supply systems is then further defined by their physical location, hydrological boundaries and associated infrastructure. Physical constraints on water flow, like the Barmah Choke, are also recognised.


The next is the management zone, which is defined by a combination of political, administrative, and physical considerations.

The next element in the classification framework is the allocation pool category. Across the SCRMS, reliability is usually defined twice. First, by identifying the purpose of use usually associated with the statements about access priority given to pools of water, and then, the actual reliability of the expected allocations.

The last grouping collects a large variety of licence conditions and/or restrictions. Different types of water entitlements are further characterised by these complementary attributes, which include restrictions on the application of water to land, limits on the location where water may be used, restrictions on trade within and outside an area, the period over which any allocation is valid for, obligations to infrastructure suppliers, and so forth.

Table 2. A classification framework to assist in identifying the number of types of water entitlements in the SCRMS

4.2 Water entitlements in regulated surface water system Although most, if not all, of the above systems are interconnected, much of the policy attention is being given to the management of regulated surface water system where options for water trading and supply management are greater. The allocation pools in the regulated surface water system are also the Murray Darling Basin Commission most intimately involved.

When specific details associated with the nature of each allocation pool, restrictions, conditions, etc. are taken into account, 22 categories of water entitlements can be identified in the regulated surface water system in the SCRMS (see Table 3).

A number of attributes are important in specifying a water entitlement. In particular,

• Supply reliability is defined in terms of the number of years in 100 when entitlement holders can, on the basis of past climatic conditions and allocation decisions, expect to receive their maximum entitlement volume;

• Entitlement and allocation tradability is defined in terms of whether or not they are tradable among States (***), within the State (**), only within the region (*) or un-tradable (0);

• Tenure is defined in terms of whether or not the licence term is either perpetual (∞) or ongoing (∞*), or has a specific term. Where a term exists, the licence is normally issued for a number of years; and

Classification Framework

Elements Supply system Management zone Allocation pool category

Licence conditions/ restrictions

Criteria

Dominant source of water (i.e., regulated or unregulated

surface water, confined or unconfined

groundwater aquifer)

Defined by a combination of political,

administrative, and physical considerations (State and hydrological boundaries are always respected. Zones are

often defined by irrigation district

boundaries)

Defined by a combination of use purpose

and statements about access priority and/or

the reliability of the expected allocations

Restrictions on use and trade, infrastructure obligations, and tenure,

etc.


• Access priority refers to the priority assigned to the pool of water from the system within which it is taken. As a general rule there is a close correlation between access priority and supply reliability.

Table 3 summarises the characteristics of these 22 entitlements categories in terms of supply reliability and tenure arrangements. Reliability estimates, for entitlement categories with reliability less than 90%, are indicative and variable as a result of the change of farm dam development, more groundwater is used, return flows decrease, land use change affects run off and climate change occurs.

Table 3. Existing 22 categories of entitlements 1 in regulated surface water system

Attributes

State Water System Entitlement Category (total 22)

Supp

ly

relia

bilit

y (%

)

Tenu

re

(yea

r)

Domestic & stock 100 ∞ Local water utility 100 20

High security >97 ∞ Conveyance 50 b ∞

Environmental water 100 ∞* General security 70 a ∞

Murray River

Supplementary water 50 b 2 Domestic & stock 100 ∞ Local water utility 100 20

High security >97 ∞ Environmental water 100 ∞*

General security 70 a ∞

Lower Darling River

Supplementary water 50 b 2 Domestic & stock 100 ∞ Local water utility 100 20

High security >95 ∞ Conveyance 50 b ∞

Indigenous cultural 100 ∞* General security 70 a ∞

NSW

(8)

Murrumbidgee River

Supplementary water 50 b 2 Domestic & stock right 100 ∞

Town water supply 100 ∞* Supply by agreement 100 ∞*

Water right 96 ∞* Diversion licence 96/70 a 15

Goulburn-Murray Water

Sales water 2 30-43 1 Domestic & stock right 100 ∞

Town water supply 100 ∞* Supply by agreement 100 ∞*

Water right 96 ∞* Diversion licence 96 5

Vic

(6)

Murray River

Sales water 2 48-68 1 Stock & domestic 100 ∞

Country town water 100 ∞ Industrial 100 ∞

SA

(8)

River Murray Prescribed Watercourse

Recreational & environmental >97 ∞


Irrigation >97 ∞ Wetlands >97 2-5

Water (holding) >97 ∞ Stock & domestic 100 ∞

Metropolitan water 3 100 ∞ Country town water 100 ∞

Industrial 100 ∞ Recreational & environmental >97 ∞

Irrigation >97 ∞

Lower Murray Prescribed Watercourse

Water (holding) >97 ∞ Stock & domestic 100 ∞

Country town water 100 ∞ Industrial 100 ∞

Recreational & environmental >97 ∞ Irrigation >97 ∞ Wetlands >97 2-5

Angas Bremer Prescribed Well Area 4

Water (holding) >97 ∞

Notes: 1. In the regulated surface water system, there are 438 types of water entitlements for different purposes. Due to the limitation of available information on entitlement attributes, only 53 types of water entitlements are listed.

2. For the convenience to the research, and as the Victorian Government White Paper has proposed to unbundle Sales water into a separate, legally recognised, and independently tradable entitlement, in this report Sales water is identified as a separate category of water entitlement. Under current arrangements, opportunities to apply for Sales water are attached to Water rights and Diversion licences and can be traded only with the entitlement.

3. Water can be traded into the 650GL allocation over 5 years for metropolitan Adelaide and associated country areas, but cannot be traded out.

4. There is a close connection between groundwater and River Murray water in SA Angas Bremer Prescribed Well Area and they are jointly managed.

a. 70 is indicative of the average supply reliability of NSW General security entitlements and for some Victorian Diversion licences.

b. 50 is indicative of the supply reliability of NSW Conveyance and Supplementary water entitlements.

4.3 Irrigation entitlements in regulated surface water system Table 4 provides an overview of the differences among states in irrigation entitlement arrangements and seasonal allocation policies in regulated surface water area of the SCRMS. More detailed information is available in Appendix 1 and Appendix 2.


Table 4. A summary of state approaches to regulated surface water allocation

State Nature of water entitlement Allocation policy Reliability a

High security access licence

Allocations are specified as a maximum volume and this allocation is expected to be available in all but the worst droughts. Unused allocations are surrendered at the end of the season. The entitlement includes permission to use water at a specific location.

NSW is in the process of converting all licences into separate access licences as shares and moving all use and work conditions into separate “water use approval” and “water supply work approval”.

95% (Murrumbidgee)

97% (Murray & Lower Darling)

General security access licence

User’s annual allocation varies according to the amount of water available in the general security allocation pool, after allowing to higher priority pools including commitments to water utilities, the environment, stock and domestic users, high security access licence holders, etc. Carry-over and overdraw provision rules apply to general security entitlements only.

NSW is in the process of converting all licences into separate access licences as shares and moving all use and work conditions into separate “water use approval” and “water supply work approval”.

70% on average

NSW

Supplementary water access licence

Available to general security access licence holders only when flows are surplus to in-stream requirements.

Opportunistic

Water right

A water right is a high reliability entitlement, held by individuals within irrigation districts. Allocations are specified as a maximum volume and this allocation is expected to be available in all but the worst droughts. Some, but not all, water right holders have access to sales water. Unused allocations are surrendered at the end of the season.

Following NSW, Victoria has announced an intention to unbundle the entitlement dimension of a water right from use conditions and manage them separately from allocations.

96-99%

Diversion licence

A diversion licence is issued for a specified annual volume and (usually) a maximum diversion rate. Unused allocations are surrendered at the end of the season.

Following NSW, Victoria has announced an intention to unbundle the entitlement dimension of a diversion licence from use conditions and manage them separately from allocations.

96-99%

Vic

Sales water attached to Water right b

When seasonal conditions and dam supplies allow, sales water allocations may be purchased by an irrigator in addition to those available under a water right. Sales water is not available to water right holders in the western part of Victoria. Unused allocations are surrendered at the end of the season.

68% c (Murray)

43% c (Goulburn)


Sales water attached to Diversion licence b

Sales water attached to a water right is more reliable than that attached to diversion licences. All other allocation policy dimensions are the same as above.

48% d (Murray)

30% d (Goulburn)

Water (taking) licence

Allocations are specified as a maximum volume and this allocation is expected to be available in all but the worst droughts. Unused allocations are surrendered at the end of the season. ‘Taking’ allocations include permission to use water at a specific location.

Almost 100% e

SA

Water (holding) licence

Allocations do not vary from year to year and are expected to be available in all but the worst droughts. ‘Holding’ allocations must be transferred to a ‘taking’ licence before they can be used.

Almost 100% e

Notes: a. Data were deriver from Ballard (2003).

b. Under current arrangement in Vic, sales water is not a formal entitlement. It is attached to water right or diversion licence and cannot be traded separately. For the convenience to the research, and as the Victorian Government White Paper has proposed to make sales water into a separate, legally recognised, and independently tradable entitlement, in this report sales water is identified as a separate category of water entitlement.

c. The reliability of sales water entitlement is approximate and reflects the probability of reaching full sales allocation.

d. The reliability of sales water entitlement is approximate and reflects the probability of reaching full sales allocation.

e. In 2003/4 and 2004/5, holders of SA water licences in the SCRMS have not received their full allocation. This is the first time happened in history.

Table 1 and Table 3 show that among 22 categories of regulated surface water entitlements, 13 categories (i.e., Domestic & stock, Local water utility, Conveyance, Environmental water, Indigenous cultural, Domestic & stock right, Town water supply, Supply by agreement, Metropolitan water, Country town water, Industrial, Recreational & environmental and Wetlands) are set for specific purposes and normally they are not allowed to trade. The remaining 9 categories are assigned to irrigation and river management purposes and tradable (i.e., High security, General security, Supplementary water, Water right, Diversion licence, Sales water, Stock & domestic,4 Irrigation and Water (holding)).

Table 5 summarises these 9 categories and 183 types of irrigation entitlements (which are, to varying degrees, tradeable) that are identified in the regulated surface water area of the SCRMS.

4 The exception applies to SA Stock & domestic licensed allocations. They are separated from land title and can be traded independently.


Table 5. Major 9 categories and 183 1 types of irrigation entitlements in regulated surface water of the SCRMS

Attributes En

title

men

t Typ

e C

ode

Riv

er V

alle

y

Man

agem

ent Z

one

Zone

Cod

e

Sub-

Zone

Entit

lem

ent

Cat

egor

y

Supp

ly

relia

bilit

y (%

) En

title

men

t tr

adab

ility

(p

erm

anen

t) A

lloca

tion

trad

abili

ty

(tem

pora

ry)

Tenu

re (y

ear)

Acc

ess

prio

rity

2

Tota

l Ent

itlem

ent

Type

T1 High security >97 E** A*** ∞ 1 T2 General security 70 a E** A*** ∞ 2 T3

Murray Irrigation Ltd. 10B4 IDs: Berriquin, Denimein, Wakool,

Deniboota Supplementary water 50 b 0 A* 2 3

T4 Western Murray Irrigation Ltd. 3 IAs: Buronga , Coomealla , Curlwaa High security >97 E** A*** ∞ 1 T5 General security 70 a E** A*** ∞ 2 T6

NSW Murray

West Corurgan Irrigation Trust Supplementary water 50 b 0 A* 2 3

T7 High security >97 E*** A*** ∞ 1 T8 General security 70 a E** A*** ∞ 2 T9

NSW Lower Darling

Menindee Lake to Wentworth Weir

Supplementary water 50 b 0 A* 2 3


Murrumbidgee Irrigation Area 2 IAs: Mirrool, Yanco, 3 IDs: Tabbita, Benerembah, Wah Wah

Supplementary water 50 b 0 A* 2 3 T13 High security >95 E** A*** ∞ 1 T14 General security 70 a E** A*** ∞ 2 T15

Coleambally Irrigation Area Supplementary water 50 b 0 A* 2 3


Burrinjunk to Murray Supplementary water 50 b 0 A* 2 3


NSW Murrumbidgee

Yanco/Billabong Creek System Supplementary water 50 b 0 A* 2 3


Hume to Barmah Choke 10A Supplementary water 50 b 0 A* 2 3


NSW River Murray Channel

Barmah Choke to Nyah Supplementary water 50 b 0 A* 2 3

NSW

53


T28 High security >97 E*** A*** ∞ 1 T29 General security 70 a E** A*** ∞ 2 T30

Nyah to SA Border About 900 individual irrigators in Sunraysia

district (NSW and Vic together) Supplementary water 50 b 0 A* 2 3

T31 Water right 96 E** A*** ∞* 1

T32 Diversion licence 96 E** A*** 15 1

T33

Great Goulburn 1A Sales water 3 40 c 0 A** 1 3



T36

Boort 1B Sales water 40 c 0 A** 1 3



T39

Pyramid-Boort 1C Sales water 40 c 0 A** 1 3



T42

Rochester 1D Sales water 40 c 0 A** 1 3



T45

Central Goulburn 1E Sales water 40 c 0 A** 1 3


T47

Vic Goulburn

Lower Goulburn 3 Sales water 40 c 0 0 1 3

T48 Diversion licence 70 a E** A*** 15 2

T49 Nillahcootie to Casey's Weir 2A

Sales water 40 c 0 0 1 3


T51

Vic Broken Casey's Weir to Goulburn River 2B




T54

Campaspe 4A Sales water 40 c 0 A** 1 3



T57

Vic Campaspe

Campaspe Irrigation District 4C Sales water 40 c 0 A** 1 3


T59 Vic Loddon Loddon 5A



T61 Vic Bullarook

Creek Bullarook 5B


T62 Vic Murray Hume to Barmah Choke 6 Water right 96 E** A*** ∞* 1

VIC

89



T64 Sales water 60 d 0 A** 1 3



T67

Murray Valley Irrigation District Sales water 60 d 0 A** 1 3



T70

Barmah Choke to Nyah 7 Sales water 60 d 0 A** 1 3



T73

Torrumbarry 7A 4 1 IA: Torrumbarry, 3 IDs: Tresco, Worrinen, Nyah

Sales water 60 d 0 A** 1 3


T75 Nyah to SA Border (HIZ) 8H 2 IDs (salinity): Merbein, Red Cliffs

Diversion licence 96 E*** A*** 5 1


T77 First Mildura Irrigation Trust

(HIZ)

Diversion licence 96 E*** A*** 5 1


T79 Diversion licence 96 E*** A*** 5 1

T80

Nyah to SA Border (LIZ1) 8L1 2 IDs (salinity): Merbein, Red Cliffs

Sales water 60 d 0 A** e 1 3



T83

Nyah to SA Border (LIZ2) 8L2 1 ID (salinity): Robinvale

Sales water 60 d 0 A** e 1 3



T86

Nyah to SA Border (LIZ3) 8L3 Sales water 60 d 0 A** e 1 3



T89

Nyah to SA Border (LIZ4) 8L42 IDs (salinity): Red Cliffs, Nangiloc

Colignan Sales water 60 d 0 A** e 1 3

T90 Vic Ovens Ovens 9A Diversion licence 70 a E** A*** 15 2

T91 Vic King King 9B Diversion licence 70 a E** A*** 15 2

T92 Irrigation >97 E** A*** ∞ 1 T93

Central Irrigation Trust 9IDs: Berri, Cadell, Chaffey, Cobdogla, Kingston, Loxton, Moorook, Mypolonga,

W ik iWater (holding) >97 E** A*** ∞ 1


Renmark Irrigation Trust Water (holding) >97 E** A*** ∞ 1


SA River Murray Prescribed

Watercourse

Sunlands and Golden Heights Irrigation Trusts

And other small irrigation trusts (e.g., Pyap, Lyrup) Water (holding) >97 E** A*** ∞ 1

SA

41


T98 Stock &domestic 100 E*** A*** ∞ 1 T99 Irrigation >97 E*** A*** ∞ 1 T100

Individual operation licences Over 450 individual irrigators in Riverland district

Water (holding) >97 E*** A*** ∞ 1 T101 Stock &domestic 100 E*** A*** ∞ 1 T102 Irrigation >97 E*** A*** ∞ 1 T103

Lower Murray Swamps (highlands)

Water (holding) >97 E*** A*** ∞ 1

T104 Irrigation >97 E** A*** ∞ 1 T105

Lower Murray Swamps (private)

Water (holding) >97 E** A*** ∞ 1

T106 Irrigation >97 E** A*** ∞ 1 T107

SA Lower Murray Prescribed

Watercourse

Lower Murray Swamps (government)

Water (holding) >97 E** A*** ∞ 1

T108 Stock &domestic 100 E*** A*** ∞ 1 T109 Irrigation >97 E*** A*** ∞ 1 T110

SA Angas Bremer Prescribed Well

Area Angas Bremer

Water (holding) >97 E*** A*** ∞ 1 T111 Irrigation >97 E*** A*** ∞ 1 T112

Barossa Prescribed Water

Barossa (connected via pipeline)

3 Zones: 1 (Barossa Valley Floor), 2 (Jocob & Tanunda Creeks), 3 (Flaxman Valley) Water (holding) >97 E*** A*** ∞ 1

112 44 73 9 183

Notes: Shading indicates currently in the Pilot Interstate Water Trading Project areas.

1. In the regulated surface water area of the SCRMS, there are 9 categories and 183 types of water entitlements for irrigation purpose. Due to the limitation of available information on entitlement attributes, only 112 types of water entitlements are listed.

2. Various entitlements are given access priority according to the allocation pool category they belong to (i.e., 1, 2 and 3). In NSW, for example, high security entitlements have prior access to water than general security entitlements, and general security entitlements have prior access to water than supplementary water entitlements.

3. For the convenience to the research, and as the Victorian Government White Paper has proposed to unbundle Sales water into a separate, legally recognised, and independently tradable entitlement, in this report Sales water is identified as a separate category of water entitlement. Sales water is the volume allocation above Water right and Diversion licences. Under current arrangements, opportunities to apply for Sales water are attached to entitlement of Water right or Diversion licence and can be traded only with the entitlement.

4. Zone 7A co-exists with Zone 7, this zone will only operate when net trade out of this zone reaches 2% of Water right. At all other times trades may be conducted with Zone 7.

a. 70 is indicative of the average supply reliability of NSW General security entitlements and some Victorian Diversion licences.

b. 50 is indicative of the supply reliability of NSW Supplementary water entitlements.

c. 40 is indicative of the supply reliability of Vic Sales water in Goulburn system.

d. 60 is indicative of the supply reliability of Vic Sales water in Murray system

e. Water allocations can only be purchased from Goulburn-Murray trading zone.


5 Opportunities to Simplify Irrigation Entitlements Arrangements

There are considerable opportunities to reduce the complexity of the current irrigation entitlements arrangements among Sates and some opportunities are already underway. Significant opportunities include:

• Introducing standard terminology;

• Reducing water entitlement and trading arrangements complexity;

• Unbundling use restrictions and obligations, including those associated with salinity management, from entitlement and allocation arrangements;

• Standardising the tenure, trading restrictions and other similar arrangements;

• Converting existing entitlements into one or more standardised entitlements; and

• Rationalising zone boundaries so that they are constrained only by hydrological considerations.

As these issues are complicated a case study is used first to illustrate the nature of these opportunities and the challenges presented.

In the process of drawing attention to these opportunities, an important caveat needs to be made. The purpose of writing this report is to search for opportunities and present them in a manner that makes the nature of the opportunities transparent. As a result, no consideration is given to the political difficulty associated with bringing about such a reform or the most appropriate way to deal with the many equity and procedural fairness issues that existing licence holders and other members of the community may raise.

5.1 A case study of simplifying irrigation entitlements arrangements As opportunities for simplification require simultaneous consideration of many issues it is useful to begin with a case study. The area chosen to illustrate the extent of opportunities is the Northern Victoria and NSW River Murray regulated surface water system (see Map 2). As can be sensed from the map, arrangements are complex in this area. For example, irrigators in zone 1A can buy water from zone 8H but because of salinity impacts they cannot sell water to zone 8H. Similarly, trade is possible within those zones above the Barmah Choke (e.g., 9A, 9B, 10A and 10B) but not to zones that are below the Barmah Choke. To add to the complexity, some locational exchange rates can be asymmetrical. For example, an irrigator in zone 10B, who buys 1 ML water from an irrigator in zone 10A, will only receive 0.85 ML water, but if he/she were to sell 1 ML to zone 10A, then the recipient would receive 1 ML water.

Within the case study area there are 24 zones and 62 types of irrigation entitlements. Table 6 presents the resultant tradability matrix, which on close examination presents a number of opportunities for simplification. In particular,

• when all entitlements with the same attributes are grouped together 10 entitlement groups can be identified;

• when entitlements with the same location exchange rates and trade rules are grouped together it becomes apparent that a number of trading zones can be merged.

As summarised in Table 7, it becomes apparent that once use conditions are unbundled from entitlement arrangements, trading zones 1A and 1B could be merged as zone 1. In the same vein, entitlements in zones 2A and 2B have the same locational exchange rates and are equally tradeable. Therefore, trading zones 2A and 2B could be merged as zone 2.

When all these changes are put together, the result is a situation where the previous 24 trading zones and 62 types of irrigation entitlements are simplified into 22 trading zones and 10 types of irrigation entitlements.


Map 2. Water trading/salinity impact zones in Northern Vic and NSW River Murray regulated surface water system

Source: http://www.watermove.com.au

Cartography by the Customized Mapping Unit, Land Information Group, Land Victoria, DNRE, 2002.


Table 6. Tradability matrix for irrigation entitlements in regulated Northern Vic and NSW River Murray surface water

Can buy from Water zone

Irrigation entitlement

Zone code

1A

1B

1C

1D

1E

3 2A

2B

4A

4C

5A

5B

6 7 7A

8H

8L1

8L2

8L3

8L4

9A

9B

10A

10B

Greater Goulburn T31, T32, T33 1A sb sb b b b sb sb b sb sb sb b sb sb sb sb

Boort T34, T35, T36 1B sb sb b b b sb sb b sb sb sb b sb sb sb sb

Pyramid-Boort T37, T38, T39 1C s s sb b s s s s s s s s s s

Rochester T40, T41, T42 1D s s s sb s s s s s s s s s s

Central Goulburn T43, T44, T45 1E s s s s sb s s s s s s s s s

Lower Goulburn T46, (T47) 3 sb sb b b b sb sb b sb sb sb b sb sb sb sb

Broken: Nillahcootie-Casey's Weir T48, (T49) 2A sb sb

Broken: Casey's Weir-Goulburn River T50, (T51) 2B sb sb

Campaspe T52, T53, T54 4A sb sb b b b sb sb b sb sb b sb sb sb sb

Campaspe Irrigation District T55, T56, T57 4C s s s s sb s s s s s s

Loddon T58, (T59) 5A sb sb b b b sb sb sb sb b sb sb sb sb

Bullarook T60, (T61) 5B sb

Hume to Barmah T62, T63, T64 6 sb sb b b b sb sb b sb sb sb b sb sb sb sb sb s*b*

Barmah to Nyah T68, T69, T70 7 sb sb b b b sb sb b sb sb sb b sb sb sb sb sb s*b*

Torrumbarry T71, T72, T73 7A s s s s s s s sb s s s s

Nyah to SA Border HIZ T74, T75 8H sb sb b b b sb sb b sb sb sb b b sb sb sb sb sb s*b*

Nyah to SA Border LIZ1 T78, T79, T80 8L1 sb sb b b b sb sb b sb sb sb b sb b b b sb s*b*

Nyah to SA Border LIZ2 T81, T82, T83 8L2 sb sb b b b sb sb b sb sb sb b sb sb b b sb s*b*

Nyah to SA Border LIZ3 T84, T85, T86 8L3 sb sb b b b sb sb b sb sb sb b sb b b b sb s*b*

Nyah to SA Border LIZ4 T87, T88, T89 8L4 sb sb b b b sb sb b sb sb sb b sb sb sb sb sb s*b*

Ovens T90 9A sb s#b#

King T91 9B s#b# sb

Hume to Barmah (NSW) T22, T23, T24 10A sb sb s*b*

Murray Irrigation Limited T1, T2, T3 10B sb sb sb

Total 24 62

Can

sel

l to

Notes: T47, T49, T51, T59 and T61 are not tradable. Zone 7A (co-exists with Zone 7) is for permanent trades only and operates when trade out of this zone reaches 2% of Water right.

s means can sell to and exchange rate is 1:1; b means can buy from and exchange rate is 1:1; s* means all trade from Zones 6, 7, 8H, 8L1, 8L2, 8L3, 8L4 and 10A to Zone 10B will be subject to an exchange rate of 0.85 that enables Murray Irrigation Limited to deduct losses from water traded to Zone 10B.

b* means all temporary trade where 10B shareholders buy from Zones 6, 7, 8H, 8L1, 8L2, 8L3, 8L4 and 10A will be subject to an exchange rate of 0.85 to a deduction for losses prior to the water being transferred to shareholders of Murray Irrigation Limited.

s# b# means temporary trade only and exchange rate is 1:1.


Table 7. A simplified irrigation entitlements and trading zones arrangement for regulated Northern Vic and NSW River Murray surface water

Can buy from Water zone

Irrigation entitlement

Zone code

1 1C

1D

1E

3 2 4A

4C

5A

5B

6 7 7A

8H

8L1

8L2

8L3

8L4

9A

9B

10A

10B

Greater Goulburn-Boort 1 sb b b b sb sb b sb sb sb b sb sb sb sb

Pyramid-Boort 1C s sb b s s s s s s s s s s

Rochester 1D s s sb s s s s s s s s s s

Central Goulburn

A5, A7, C4

1E s s s sb s s s s s s s s s

Lower Goulburn A7 3 sb b b b sb sb b sb sb sb b sb sb sb sb

Broken B2 2 sb

Campaspe 4A sb b b b sb sb b sb sb b sb sb sb sb

Campaspe Irrigation District A5, A7, C4

4C s s s sb s s s s s s

Loddon A7 5A sb b b b sb sb sb sb b sb sb sb sb

Bullarook B2 5B sb

Hume to Barmah 6 sb b b b sb sb b sb sb sb b sb sb sb sb sb s*b*

Barmah to Nyah 7 sb b b b sb sb b sb sb sb b sb sb sb sb sb s*b*

Torrumbarry

A5, A7, C1

7A s s s s s s sb s s s s

Nyah to SA Border HIZ A3, A5 8H sb b b b sb sb b sb sb sb b b sb sb sb sb sb s*b*

Nyah to SA Border LIZ1 8L1 sb b b b sb sb b sb sb sb b sb b b b sb s*b*

Nyah to SA Border LIZ2 8L2 sb b b b sb sb b sb sb sb b sb sb b b sb s*b*

Nyah to SA Border LIZ3 8L3 sb b b b sb sb b sb sb sb b sb b b b sb s*b*

Nyah to SA Border LIZ4

A3, A5, C2

8L4 sb b b b sb sb b sb sb sb b sb sb sb sb sb s*b*

Ovens 9A sb s#b#

King B2

9B s#b# sb

Hume to Barmah (NSW) 10A sb sb s*b*

Murray Irrigation Limited A4, B1, C3

10B sb sb sb

Total 22 10

Can

sel

l to


6 Application of Simplification Opportunities to the SCRMS

6.1 Introducing standard terminology A high degree of variability between States in water allocation policy means those working in the irrigation industry use many different terms to describe similar things (Carmichael and Cummins, 2002). Table 8 shows that among States the same words are used to describe different entitlement and allocation arrangements. In South Australia, for example, an entitlement is called an allocation, while in NSW the term allocation is used only to describe the quantity of water that is available in a season. The development of a common terminology is a fundamental step in decreasing the transaction costs associated with communication and water trade among States. It has been recognised, however, that this would require, among other things, amendments to the legislation and also to all licences that are not described in a standard manner.

Table 8. A comparison of terminologies used in three states

Current terms Issues

NSW Vic SA Suggested

terms

An individual’s ongoing right to access water

Entitlement (percentage share, was

volume)

Entitlement (volume)

Water right

Licensed volume

Licensed allocation Entitlement

Volume allocated for use within a specific

period

Announced allocation Seasonal allocation Licensed

allocation Seasonal allocation

Source: derived from Pilot Interstate Water Trading Project: Definition of Water Property Rights in the Murray-Darling Basin, Draft as at March 2001.

As summarised in Table 8, there appears to be an emerging consensus that the word ‘entitlement’ should be used to describe an individual’s ongoing right to access water and the word ‘seasonal allocation’ should be used to describe the volume allocated for use within a specific period.

6.2 Reducing water entitlement and trading arrangements complexity At present, there are a considerable number of so-called “barriers” to trade (Hassall & Associates with Musgrave 2002). Some of these barriers are there for historical reasons, some in an attempt to protect regional interests and some because of the ways that water entitlements, allocations and use conditions have been defined. Administrative processes and costs are another reason that trade is less than it could be.

The National Water Initiative and a significant number of other documents have all proposed that opportunities for permanent and temporary trade could be increased and the transaction costs associated with water trading – in a sustainable manner – could be reduced. Conceptually, one of the simplest ways of reducing transaction costs is to reduce water entitlement complexity. Options to do this in the SCRMS include:

• development of a single standardised system; or

• development of a more unified system.

Conceptually, a single, standardised system of water entitlements for the SCRMS with the removal of all differences among States would reduce the number of entitlement types necessary. In reality and given the extent of State investment in their separate systems, a more unified system of


water entitlements is probably more achievable. In a number of cases, significant policy and legislative reform would be necessary. In particular, legislation amendment may be needed to facilitate the conversion of one type of entitlement to another.

Another option, left for parallel development elsewhere, is the tagged water entitlement trading system. In effect, a tagged water trade is the transfer of an entitlement from one person to another followed by an application for prior approval to transfer that entitlement to another location at the locational exchange rate for the movement of an allocation from one location to another at the time. The main feature of a tagged water trading is that the allocations made are always determined by reference back to the originating pool and not the pool from which the water is now delivered.

In a unified trading system, where there is a commitment to lower transaction costs, some but not all entitlements could be made available for tagged trading. All other entitlements would need to first be converted, using an appropriate conversion rate into an entitlement that is fully tradeable either by tagging or by transfer from one pool to another.

In the search for a more unified system, it also needs to be appreciated that all systems in the SCRMS are hydrologically interconnected. It has to be physically possible to deliver the water to the buyer's location. Reticulation systems, such as river channels and irrigation canals and pipelines, have limited carrying capacities. The most significant river channel constraints on the River Murray are (1) the 'Barmah Choke', downstream of Tocumwal in the Barmah-Millewa Forest, and (2) the section between Hume Dam and Yarrawonga Weir. The Barmah Choke is running at a capacity with the consequence that downstream trades are only possible if they are offset by upstream trades and/or by complex arrangements (e.g., at an appropriate locational exchange rate, or use of other pathways 5).

6.3 Unbundling In this report, a distinction is made between trades involving

• only a change in ownership; and

• both a name change and details pertaining to the allocation pool to which it is assigned, management zone, use restrictions, use conditions, etc.

In the first case, the administrative process is simple. Once consent is obtained from any registered third parties, the change can be made. In the second case, the process is more complicated. Obligations and environmental impacts associated with the proposed change in the location where the water is to be used need to be considered as do issues associated with the capacity to deliver the water to the new location. Transmission losses also need to be taken into account. The way these latter issues are normally taken into account is to construct a series of tradability matrices that indicate the nature of the considerations.

Across the regulated surface water area of the SCRMS, there are 9 categories and 183 types of water entitlements available for irrigation purposes (see Table 5). Theoretically, if all entitlements where fully tradeable this would mean that there are 183 × (183-1) = 33,306 elements in the tradability matrix.

In reality, however, there are many biophysical and policy impediments to trade. Many of the cells in the matrix are infeasible. At the moment, when all restrictions are taken into account, the number of possible trades of both water entitlements and allocations that brokers have to be aware of reduces from 66,612 to around 3,700 (Tom Rooney, Personal Communication, October 2004). That is, if one wishes to build a matrix that accurately describes all the factors that need to be considered before offering to broker at trade, the matrix of feasible trades needs to contain over 3,700 entries.

5 For example, Murray Irrigation is below Barmah Choke if suppled from Wakool Canal (on Edward River Anabranch) and is above Barmah Choke if supplied from Mulwala Canal.


Clearly, there are considerable opportunities to reduce the complexity that has grown over time and appears largely to be a consequence of the development of a system where originally no trade was contemplated.

Trading opportunities are, however, restricted by the need to get environmental approval before water may be used. In some States this must be done on a trade-by-trade basis, while in other States approval can be obtained in advance. The move towards the separation or unbundling of licences is starting to simplify the process of obtaining environmental approval.

Building upon theoretical work on the nature of transaction costs associated with the robust definition of water entitlements, NSW is in the process of unbundling its water entitlement system and, in particular, separating the definition of entitlement arrangements from those associated with supply work and use approvals. As noted earlier, Victoria has announced an intention to follow suit in a manner that can be expected to considerably lower transaction costs.

In Victoria, a series of trading zones is used to prevent the trade of regulated surface water into areas where the result would be an increase in river salinity. The essential requirement is that water currently in a high impact zone must be traded to one of four low impact zones. Trade from a high impact zone to any of the four low impact zones does not attract a levy while trade among low impact zones attracts a levy that depends upon the net impact of the trade. Among other things, in Victoria it can be expected to remove the need to differentiate entitlements by salinity impact areas. The result will be the removal of rules associated with entitlement and allocation trade for 13 elements in the tradability matrix.

7 Standardisation opportunities

Arguably, simplification and standardisation of the system would provide greater flexibility and increase opportunities for water users. It could also reduce transaction costs considerably. Currently, there are 183 types of irrigation entitlements in the regulated surface water area of the SCRMS (see Table 5). In Appendix 4, 112 types of irrigation entitlements for which their full attribute information is available are ranked according to similarity in supply reliability, tradability, tenure and access priority. The appendix reveals that many entitlement types are very similar. In particular, there is opportunity to:

• align and standardise supply reliability and access priority arrangements;

• standardise tenure arrangements; and

• merge a number of allocation pools.

As a number of States are exploring, there are also a number of opportunities to rationalise sales water and supplementary water arrangements. Rather than discussing each opportunity on a case-by-case basis, Appendix 5 introduces a rationalisation system that groups entitlement types according to similarity within each State.

Table 9 summarises the results presented in more detail in Appendix 5. The most striking number in this table are the 61 types of irrigation entitlement presented in Victoria. As noted elsewhere, unbundling will remove the need to maintain many of these.

As summarised in Table 10 (details of each entitlement group are presented in Appendix 6), the result is the identification of 14 entitlement groups with similar supply reliability and that each group could be standardised. If States are prepared to cooperate, the existing array of arrangements could be replaced with a standardised

• high security type A entitlement of, say, 95% reliability;

• medium security type B entitlement of, say, 70% reliability; and

• low security type C entitlement, whose reliability depends upon the expected size of the residual water available, which would be of lower reliability.


Table 9. Three classes of irrigation entitlements in the SCRMS

Entitlement Category (total 9) Entitlement Type Entitlement Class NSW Vic SA NSW Vic SA

Total

Class I (high

reliability 91-100%)

High security

Water right

Diversion licence

Stock & domestic

Irrigation

Water (holding)

T1 T4 T7 T22 T25 T28

T10 T13 T16 T19

T31 T34 T37 T40 T43 T52 T55 T62 T65 T68 T71 T74 T76 T78 T81 T84 T87

T32 T35 T38 T41 T44 T46 T53 T56 T58 T63 T66 T69 T72

T75 T77 T79 T82 T85 T88

T98 T101 T108

T92 T94 T96 T99 T102 T104 T106 T109 T111

T93 T95 T97 T100 T103 T105 T107 T110 T112

67

Class II (medium reliability 61-90%)

General security

Diversion licence

NA T2 T5 T8 T11 T14 T17 T20 T23 T26 T29

T48 T50 T60 T90 T91 NA 15

Class III (low

reliability 0-60%)

Supplementary water

Sales water a NA

T3 T6 T9 T12 T15 T18 T21 T24 T27 T30

T33 T36 T39 T42 T45 T54 T57

T64 T67 T70 T73

T80 T83 T86 T89

(T47 T49 T51 T59 T61) b

NA 30

Sub-total 3 3 3 30 61 21 112

Notes: a. In terms of temporary trade of Sales water, irrigators can maximum sell 30% of allocated Sales water, and if they sell any water above that they lose the right to Sales water for that season.

b. T47, T49, T51, T59 and T61 are not tradable.

Table 10. Classification of 14 irrigation entitlement groups in the SCRMS into three classes

State Entitlement Class

NSW Vic SA

Single standardised

system

Class I: (high reliability 91-100%) A2, A4, A6 A3, A5, A7 A1, A2, A4 A

Class II: (medium reliability 61-90%) B1 B2 NA* B

Class III: (low reliability 0-60%) C3 C1, C2, C4, C5 NA* C

Note: * In a fully tradeable system or in a system where tagged entitlement trading is permitted, it would be expected that SA would consider allowing Class II and Class III entitlements to be introduced (see Young et al., 2004).

7.1 Rationalising supply reliability and access priority In terms of supply reliability, those 9 categories and 112 types of irrigation entitlements in regulated surface water of the SCRMS can be grouped into three classes (see Table 9). It can be seen from Table 9 and Table 10 that, with the exception of five entitlements (i.e., T47, T49, T51, T59 and T61), Vic Water rights and Diversion licences, SA Stock & domestic, Irrigation and Water (holding) have the supply reliability of 96-100% and access priority of 1, which are similar to that of


the NSW High security entitlements that with supply reliability of 95/97% and access priority of 1. Therefore, they can be aligned into Class I (high reliability 91-100%) and then could be standardised as type A entitlements.

As a result, it can be seen from Table 9 and Table 10 that NSW T1, T4, T7, T10, T13, T16, T19, T22, T25 and T28 could be standardized as type A entitlements. In the same vein, NSW T2, T5, T8, T11, T14, T17, T20, T23, T26 and T29 could be standardised as type B entitlements; and NSW T3, T6, T9, T12, T15, T18, T21, T24, T27 and T30 could be standardised as type C entitlements.

In terms of access priority, there are three classes (i.e., 1, 2 and 3) according to the current arrangement. If supply reliability is to be the guide and markets exist, then arguably there is no need to define reliability twice (i.e., once using a statement about access priority and a second defining reliability).

7.2 Rationalising tenure In terms of tenure, there are different arrangements (i.e., perpetual, ongoing, 15, 5, 2 and 1 year). As envisaged in the National Water Initiative, it is possible to standardise all these tenure arrangements into either a perpetual or an ongoing tenure.

7.3 Merging allocation pools It can be seen from Table 9 that there are 67, 15 and 30 types of irrigation entitlements in Class I, Class II and Class III, respectively. In this research, we assume that standardised water entitlement types named A, B, C (belong to Class I, II, III, respectively) already exist. Taking these standardised entitlement types (i.e., A, B, C) as the reference will produce the opportunities to reduce the types of entitlements in each Class (i.e., by aligning those entitlements in NSW, Vic and SA, which have the similarity in supply reliability and tradability to those standardised ones). As a result, those allocation pools with the similar supply reliability could be merged together.

7.4 Converting sales and supplementary water Another opportunity is to rationalise arrangements associated with sales water and supplementary water. Most types of irrigation entitlements are tradable both temporarily and permanently. However, supplementary water entitlements can only be traded temporarily within a valley and at this stage, cannot be traded permanently as they only available to those who hold general security entitlements. In an environment where all allocations are fully tradeable it is possible to abolish this form of entitlement arrangement and use this additional pool of water to modify the reliability of other pools.

Similarly, sales water entitlements can either be traded only temporarily or not at all. As Victoria is proposing to do, this form of quasi-entitlement could be abolished and used to either create a new pool or enhance an existing pool.

8 Issues For Further Study

8.1 Recognising allocation pool limits It is important to understand the nature of the regulated supply system. While concepts can be standardised, the degree of connectivity needs to be recognised. Ultimately allocation announcements will only be made once an assessment of the water supply in each system is taken. In particular, there is a need to recognise that supply conditions can be quite different between the following 7 water supply systems (see Figure 3):

• the NSW Murrumbidgee system (including Coleambally);


• the NSW Lower Darling system;

• the Murray system above the Barmah Choke;

• the Murray system between the Barmah Choke and Nyah;

• the Murray system between Nyah and SA Border;

• the Murray system from SA Border to Murray mouth; and

• the Victorian Goulburn system.

8.2 Assessing the impacts of water trading The result of the separation of entitlements to extract water (via access licences) from licences to use water (via water use approvals) is that water entitlements trading can be approved rapidly without need for the approving agency to consider the impacts of the use of that water. However, entitlement holders and potential market participants need explicit information on the risk profile of future water supply in order to efficiently value water transfers.

There is also the need to consider operational feasibility (e.g., channel capacity), the impact of unauthorised water use on the supply reliability of existing water entitlements, and environmental effects (e.g., the impact of total water use (authorised and unauthorised) on the riverine ecosystem and/or groundwater environment).

8.3 The dynamic relationships between water trading and supply reliability A well-connected river and channel system underpinned by a range of storage facilities enables water to be moved from areas of surplus to deficit, and allows trading of water entitlements and allocations to be possible. Water trading provides a means whereby users can tailor their access to water to their business needs at any time. Trading rules can be designed to protect the legal entitlements of individuals who may be affected by the water trades, to adjust the rates at which water is exchanged, and to account for water losses or water moving between systems. Different supply systems have different supply reliabilities. These differences must be taken account into the water trading framework so that trade does not have any (or has less) third-party impacts. Access to an internet-based water trading information system to inform water users, water management institutions and the general public about these arrangements could help reduce complexity.

8.4 Balancing the private and public interests There are risks associated with the political and institutional environment in which the water entitlement trading operates (i.e., site-specific risk). It is therefore crucial to determine what needs to be included in a use licence (individual/private interest) and what is best left in a management plan (collective/public interest) and strike a balance between them.

Although water entitlements are separated from land titles, there are still constraints on where and under what conditions the entitlements can be exercised to protect the environment, other entitlement holders and the water resource itself. Because the impacts are location-specific, unbundling a water entitlement into separated components of access entitlement, allocation and site-use licence has provided the direction for alternative water entitlements arrangements.


Figure 3. A schematic diagram of Murrumbidgee, Murray and Goulburn irrigation systems

Source: Modified from Ballard (2003, p. 6).

S A Highlands

Irrig Trusts

Lower Murray Swamps

LakeAlexandrinaMurray

Mouth

LakeHume

LakeDartmouth

MurrayIrrigation

Ltd

Murrumbidgee

Murray

River

Mitta M

itta R

Dar

ling

Rive

r

MenindeeLakes

Tumut R

BurrunjuckDam

BloweringDam

ColeamballyIrrigCo-op

MurrumbidgeeIrrigation

WesternMurray

Irrig

River

Goulburn

R

LakeEildon

SnowyScheme

Irrigation areas

New South Wales

Victoria

South Australia

WestCorurgan

LakeVictoria

Nyah

SANSW

Vic

SunraysiaFMITIDs

MurrayValley I D

TorrumbarryI D

GoulburnIrrigation Districts

Barmah C

hoke

S A Highlands

Irrig Trusts

Lower Murray Swamps

LakeAlexandrinaMurray

Mouth

LakeHume

LakeDartmouth

MurrayIrrigation

Ltd

MurrayIrrigation

Ltd

Murrumbidgee

Murray

River

Mitta M

itta R

Dar

ling

Rive

r

MenindeeLakes

Tumut R

BurrunjuckDam

BloweringDam

ColeamballyIrrigCo-op

MurrumbidgeeIrrigation

WesternMurray

Irrig

River

Goulburn

R

LakeEildon

SnowyScheme

Irrigation areas

New South Wales

Victoria

South Australia

WestCorurgan

LakeVictoria

Nyah

SANSW

Vic

SunraysiaFMITIDs

SunraysiaFMITIDs

MurrayValley I D

MurrayValley I D

TorrumbarryI D

TorrumbarryI D



Barmah C

hoke


9 Concluding Remarks

This report has been developed to provide a practical framework to assist with the development of compatible water entitlements arrangements in the SCRMC, as a response to the COAG water reform agenda and the recent NWI proposal that challenges States to align water entitlements systems. At least in the short term, it is unrealistic to expect a “one suit for all” style of water entitlements arrangements for all catchments across the SCRMS. However, individual jurisdictions can strive to ensure that the entitlement specifications are consistent within the jurisdiction and compatible among them (e.g., set up agreed and accepted conversion rules).

This report takes account of the requirements of the NWI and develops a classification system for current water entitlements arrangements. It also presents alternative options to convert existing water entitlements systems in the SCRMS in accord with the consistency and compatibility objectives. By grouping entitlements with similar attributes in supply reliability, tradability, tenure and access priority, and then aligning them, a large and complex set of existing trading zones could be merged and simplified.

This research focuses on the study at the SCRMS (with a case study of Northern Vic and NSW River Murray regulated surface water system), but the framework outlined in this report has broader implications to other water systems for the classification, simplification and standardisation of water entitlements arrangements when taking into account the specific conditions of relevant water systems.

The next step is to begin the detailed process of identifying opportunities to simplify and standardise the water entitlements arrangements. Major opportunities include:

• standardising supply reliability, tradability, tenure and access priority of each type of water entitlement;

• fully separating water entitlement from site use conditions, including the management of salinity impacts;

• reducing the number of entitlement categories (e.g., by merging the local water utility with the high security access licence in NSW, converting domestic & stock rights in irrigation districts into tradable water rights in Vic); and

• introducing larger trading zones (by merging allocation pools with similar supply reliabilities).

All the above opportunities could help reduce transaction costs and simplify river management. If pursued properly one could expect greater productivity and less conflict among communities.


References

Ballard, C., 2003. Volume, Reliability and Tenure of Major Irrigation Entitlements in the Murrumbidgee, Murray and Goulburn Valleys. Background paper prepared for Project Board on Interstate Water Trading, April.

Carmichael, A., Cummins, T., 2002. Water talk: let’s start speaking the same language.

COAG (Council of Australian Governments), 2004a. Intergovernmental Agreement on a National Water Initiative between the Commonwealth of Australia and the Governments of New South Wales, Victoria, Queensland, South Australia, the Australian Capital Territory and the Northern Territory.

COAG (Council of Australian Governments), 2004b. Intergovernmental Agreement on Addressing Water Over-Allocation and Achieving Environmental Objectives in the Murray-Darling Basin between the Commonwealth of Australia and the Governments of New South Wales, Victoria, South Australia, and the Australian Capital Territory.

Hassall & Associates with Musgrave, 2002. Barriers to trade of irrigation entitlements in irrigation areas and districts in the Murray-Darling Basin: analysis and development of solutions. Final report prepared for MDBC, June.

Meyer, W. S., et al., 2004. The Irrigation Industry and the Murray. CRC for Irrigation Futures Technical Report, November 2004.

Victorian Government White Paper, 2004. Securing Our Water Future Together. Victorian Government Department of Sustainability and Environment, Melbourne, June.

Young, M., McColl, J., 2003. Robust Reform: Implementing robust institutional arrangements to achieve efficient water use in Australia. Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.

Young, M, McColl, J., Ward, J., Shi, T., 2004. Licence-based options for deepening and extending the water market. Option Report to the Department of Water, Land and Biodiversity Conservation, South Australia, Adelaide.


Appendix 1. A brief comparison of water use in three States

NSW Vic SA

89% surface water, 65% groundwater used for irrigation.

The state’s responsibility to the use, flow and control water is delegated to the DLWC (now DIPNR) which determines how the state’s water should be allocated and managed.

Water sharing processes are affected through water licensing system. A water licence gives a holder an entitlement to take water from a river or aquifer. The way water licences are determined varies between regulated and unregulated rivers (due to the different security levels of the two rivers).

State Water manages large dams.

Significant unlicensed extraction of groundwater.

Temporary transfers were introduced in 1983; permanent transfers were introduced in 1989.

Volumetric allocation and licence embargos to address the problem of past regime of water entitlements that failed to reflect resource scarcity.

78% surface water, 70% groundwater used for irrigation.

About 570,000 ha farmland is irrigated in Victoria. 500,000 ha are supplied by public irrigation systems and the remaining 70,000 ha are irrigated by private diversions from waterways.

The ability to transfer water in Victorian Irrigation Districts was introduced in the late 1980s. In the 1994/95 irrigation season, the ability to trade between water right and diversion licences was confirmed, and water was allowed to be traded between a larger numbers of areas.

Goulburn-Murray Water can prevent trading if more than 2% of the total water right is traded out of an area in any irrigation season.

G-MW use large storages with significant carryover capacity to provide a high reliability of supply (fully available 96 years out of 100).

Water users must hold a water entitlement (i.e., water right, diversion licence or bulk entitlement) to enable supply.

Irrigated agriculture accounts for 80% of all water use.

River Murray water use has been limited by licence and allocation since 1968. While riparian stock and domestic diversions are not measured, nearly all other diversions are metered.

Common law rights retained unless the resource was proclaimed.

Water Resources Act 1997 devolves water resource management responsibilities to local communities.

Pipeline construction transported water to the areas demanded (e.g., Adelaide), rather than relying on local supplies.

In 1993, SA Water system served 1,040,000 metropolitan and 360,000 rural customers.

The Angas-Bremer groundwater resource is fully allocated.

Potential for development: on average 15-20% of the water allocated for irrigation within the SA Cap is not used.

The conversion of groundwater licences to River Murray licences is a critical factor in reducing groundwater allocation.


Appendix 2. Major legal framework in three States

Major legal fromework and key feature St

ate

Past Current N

SW

English common law (Riparian doctrine) Water Act 1912 Crown has the right to the control, flow and use of water in the state. Three types of rights: (1) domestic and stock rights, (2) harvestable rights, (3) licences. The Act abolished common law riparian rights. Except statutory domestic and stock rights (directly replaced riparian rights) and harvestable rights (<10% rainfall runoff), all other use requires a licence. Based on purposes, each class of licence has a different level of security of entitlement (priority of access). Licences were tied to works and land (cannot be transferred). Licences were redefined (from area-based to volume-based). Water Adminitrative Act 1986

Water Management Act 2000 Three types of rights: (1) statutory basic landholder rights (domestic and stock rights, harvestable rights, native title rights), (2) three classes of environmental water (first priority), (3) five access licences (access licences, use approvals, works approvals, controlled activity approavals, aquifer interference aprovals). Access licence specifies the share and rate of extraction. Separation of access licences from works and use approvals (access licence may be held without any of the four types of approvals, but holding a access licence alone will not permit to extract and use water). Accesss licence is a tradable commodity. Not allow conjuctive management of surface and groundwater.

Vic

English common law (Riparian doctrine) Water Conservation and Distribution Act 1881 Declaration of the Crown’s right to the use and control of water in any river under the control of trust. Irrigation Act 1886 Established large government-owned works. Water Act 1905 Allow state to grant permits or licences. Water Act 1958 Provided the Crown with the right to use, flow and control of water. Limited riparian rights for domestic and stock purposes. Groundwater Act 1969

Water Act 1989 Establishment of statutory water authorities for holding bulk water entitlements. Extinguished riparian rights. Water rights remain attached to land within an irrigation district. Bulk entitlement conversion process (converting existing rights). Groundwater sources are currently unregulated.

SA

English common law (Riparian doctrine to surface water) Defined the right to control the flow and the right to take water, did not confer ownship of the water resource. Created rights applied to water that is not in a watercourse. Control of Water Act 1919 (surface waters) Underground Waters Preservation Act 1970 Water Resources Act 1976 Rights to use and control water resources were vested in the Crown. Crown licensed the use of water. Licence is only a right to use, cannot be transferred, sold or divided. Water Resources Act 1990 Common law rights to take water retained unless the resource was proclaimed. Licence attached to land. Licencee can retain the licence when the property was sold.

Water Resources Act 1997 Did not confer ownership of water upon any person (includng Crown), but set up rights to access and take water. Common law rights to take water abolished. Removed unconditional use of ‘non-riparian’ water. No right to harvest floodplain water. Separation of water rights from land title. Formal allocation of rights to take and use water.


Appendix 3. Seasonal water allocations in three States

Seasonal Water Allocations in Three States (as at 15/12/2004)

State River valley District/region Allocation 2003/04

Hume Dam to Barmah Choke

Barmah Chock to Nyah Murray

Nyah to SA Border

LWU=S&D=100%, HS=97%, GS=40%

Rice farmers borrow additional 6% from Snowy Hydro Ltd

Burrinjunk to Murray

Coleambally Irrigation Growers

Murrumbidgee Irrigation Growers Murrumbidgee

Yanco Creek System

LWU=S&D=100%, HS=95%, GS=31%

Only 26% of announced 31% available by 28/02/05 NSW

Lower Darling Menindee Lake to Wentworth Weir LWU=S&D=HS=100%, GS=50% (announced on 1/12/04)

Zone 1A Central Goulburn Irrigation District

Zone 1A Shepparton Irrigation District

Zone 1A Rochester Irrigation District

Zone 1A Pyramid-Boort Irrigation District

Goulburn

Zone 3 Goulburn River Private Diverters

100% of Water right and Licensed volume

Zone 2A Broken-Nillahcootie to Caseys Weir Broken

Zone 2B Caseys Weir to Goulburn River

170% of Licensed volume

Zone 4A Campaspe Irrigation District Campaspe

Zone 4A Campaspe River Private Diverters


Loddon Zone 5A Loddon River & Tullaroop Creek Growers 100% of Licensed volume

Bullarook Creek Zone 5B Bullarook Creek Growers 190% of Licensed volume

Zone 6 Dartmouth Dam to Barmah Choke

Zone 6 Murray Valley Irrigation District

Zone 7 Barmah Choke to Nyah

Zone 7 Torumbarry Irrigation District

Zone 7 Tresco Irrigation District

Vic

Murray

Zone 7 Worrinen Irrigation District



Zone 7 Nyah Irrigation District

Zone 8 Nyah to SA Border HIZ Private River Diverters

Zone 8 Nyah to SA Border L1 Private River Diverters




First Mildura Irrigation Trust HIZ

Merbein Irrigation District HIZ (salinity)

Merbein Irrigation District L1 (salinity)

Red Cliffs Irrigation District HIZ (salinity)

Red Cliffs Irrigation District L1 (salinity)

Red Cliffs Irrigation District L4 (salinity)

Robinvale Irrigation District L2 (salinity)

Nangiloc Colignan Irrigation District L4 (salinity)

River Murray Angas Bremer Zone

River Murray Holding/Investor Licences River Murray Licensed Irrigators

River Murray Irrigation Licences

90% of Taking License volume

Berri

Cadell

Chaffey

Cobdogla

Kingston

Loxton

Moorook

Mypolonga

Central Irrigation Trust Growers

Waikerie

90% of Taking License volume

SA

Renmark Irrigation Trust 90% of 9.28 ML per irrigated ha = 8.352 ML per irrigated ha


Appendix 4. Ranking 112 types of irrigation entitlements by supply reliability, tradability, tenure and access priority

Attributes En

title

men

t Ty

pe C

ode

Riv

er V

alle

y

Irrig

atio

n M

anag

emen

t Zo

ne

Entit

lem

ent

Cat

egor

y

Supp

ly

relia

bilit

y (%

) En

title

men

t tr

adab

ility

(p

erm

anen

t) A

lloca

tion

trad

abili

ty

(tem

pora

ry)

Tenu

re

(yea

r)

Acc

ess

prio

rity

T98 SA River Murray Prescribed Watercourse Individual operation licences Stock &domestic 100 E*** A*** ∞ 1 T101 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (highlands) Stock &domestic 100 E*** A*** ∞ 1 T108 SA Angas Bremer Prescribed Well Area Angas Bremer Stock &domestic 100 E*** A*** ∞ 1 T7 NSW Lower Darling Menindee Lake to Wentworth Weir High security >97 E*** A*** ∞ 1 T28 NSW River Murray Channel Nyah to SA Border High security >97 E*** A*** ∞ 1 T99 SA River Murray Prescribed Watercourse Individual operation licences Irrigation >97 E*** A*** ∞ 1

T102 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (highlands) Irrigation >97 E*** A*** ∞ 1 T109 SA Angas Bremer Prescribed Well Area Angas Bremer Irrigation >97 E*** A*** ∞ 1 T111 Barossa Prescribed Water Resources Area Barossa (connected via pipeline) Irrigation >97 E*** A*** ∞ 1 T100 SA River Murray Prescribed Watercourse Individual operation licences Water (holding) >97 E*** A*** ∞ 1 T103 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (highlands) Water (holding) >97 E*** A*** ∞ 1 T110 SA Angas Bremer Prescribed Well Area Angas Bremer Water (holding) >97 E*** A*** ∞ 1 T112 Barossa Prescribed Water Resources Area Barossa (connected via pipeline) Water (holding) >97 E*** A*** ∞ 1 T75 Vic Murray Nyah to SA Border (HIZ) Diversion licence 96 E*** A*** 5 1 T77 Vic Murray First Mildura Irrigation Trust (HIZ) Diversion licence 96 E*** A*** 5 1 T79 Vic Murray Nyah to SA Border (LIZ1) Diversion licence 96 E*** A*** 5 1 T82 Vic Murray Nyah to SA Border (LIZ2) Diversion licence 96 E*** A*** 5 1 T85 Vic Murray Nyah to SA Border (LIZ3) Diversion licence 96 E*** A*** 5 1 T88 Vic Murray Nyah to SA Border (LIZ4) Diversion licence 96 E*** A*** 5 1 T1 NSW Murray Murray Irrigation Ltd. High security >97 E** A*** ∞ 1 T4 NSW Murray Western Murray Irrigation Ltd. High security >97 E** A*** ∞ 1 T22 NSW River Murray Channel Hume to Barmah Choke High security >97 E** A*** ∞ 1 T25 NSW River Murray Channel Barmah Choke to Nyah High security >97 E** A*** ∞ 1 T92 SA River Murray Prescribed Watercourse Central Irrigation Trust Irrigation >97 E** A*** ∞ 1 T94 SA River Murray Prescribed Watercourse Renmark Irrigation Trust Irrigation >97 E** A*** ∞ 1 T96 SA River Murray Prescribed Watercourse Sunlands and Golden Heights Irrigation Trusts Irrigation >97 E** A*** ∞ 1

T104 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (private) Irrigation >97 E** A*** ∞ 1 T106 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (government) Irrigation >97 E** A*** ∞ 1 T93 SA River Murray Prescribed Watercourse Central Irrigation Trust Water (holding) >97 E** A*** ∞ 1

a

b

d

c


T95 SA River Murray Prescribed Watercourse Renmark Irrigation Trust Water (holding) >97 E** A*** ∞ 1 T97 SA River Murray Prescribed Watercourse Sunlands and Golden Heights Irrigation Trusts Water (holding) >97 E** A*** ∞ 1

T105 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (private) Water (holding) >97 E** A*** ∞ 1 T107 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (government) Water (holding) >97 E** A*** ∞ 1 T31 Vic Goulburn Great Goulburn Water right 96 E** A*** ∞* 1 T34 Vic Goulburn Boort Water right 96 E** A*** ∞* 1 T37 Vic Goulburn Pyramid-Boort Water right 96 E** A*** ∞* 1 T40 Vic Goulburn Rochester Water right 96 E** A*** ∞* 1 T43 Vic Goulburn Central Goulburn Water right 96 E** A*** ∞* 1 T52 Vic Campaspe Campaspe Water right 96 E** A*** ∞* 1 T55 Vic Campaspe Campaspe Irrigation District Water right 96 E** A*** ∞* 1 T62 Vic Murray Hume to Barmah Choke Water right 96 E** A*** ∞* 1 T65 Vic Murray Murray Valley Irrigation District Water right 96 E** A*** ∞* 1 T68 Vic Murray Barmah Choke to Nyah Water right 96 E** A*** ∞* 1 T71 Vic Murray Torrumbarry Water right 96 E** A*** ∞* 1 T74 Vic Murray Nyah to SA Border (HIZ) Water right 96 E** A*** ∞* 1 T76 Vic Murray First Mildura Irrigation Trust (HIZ) Water right 96 E** A*** ∞* 1 T78 Vic Murray Nyah to SA Border (LIZ1) Water right 96 E** A*** ∞* 1 T81 Vic Murray Nyah to SA Border (LIZ2) Water right 96 E** A*** ∞* 1 T84 Vic Murray Nyah to SA Border (LIZ3) Water right 96 E** A*** ∞* 1 T87 Vic Murray Nyah to SA Border (LIZ4) Water right 96 E** A*** ∞* 1 T10 NSW Murrumbidgee Murrumbidgee Irrigation Area High security >95 E** A*** ∞ 1 T13 NSW Murrumbidgee Coleambally Irrigation Area High security >95 E** A*** ∞ 1 T16 NSW Murrumbidgee Burrinjunk to Murray High security >95 E** A*** ∞ 1 T19 NSW Murrumbidgee Yanco/Billabong Creek System High security >95 E** A*** ∞ 1 T32 Vic Goulburn Great Goulburn Diversion licence 96 E** A*** 15 1 T35 Vic Goulburn Boort Diversion licence 96 E** A*** 15 1 T38 Vic Goulburn Pyramid-Boort Diversion licence 96 E** A*** 15 1 T41 Vic Goulburn Rochester Diversion licence 96 E** A*** 15 1 T44 Vic Goulburn Central Goulburn Diversion licence 96 E** A*** 15 1 T46 Vic Goulburn Lower Goulburn Diversion licence 96 E** A*** 15 1 T53 Vic Campaspe Campaspe Diversion licence 96 E** A*** 15 1 T56 Vic Campaspe Campaspe Irrigation District Diversion licence 96 E** A*** 15 1 T58 Vic Loddon Loddon Diversion licence 96 E** A*** 15 1 T63 Vic Murray Hume to Barmah Choke Diversion licence 96 E** A*** 15 1

e

g

f


T66 Vic Murray Murray Valley Irrigation District Diversion licence 96 E** A*** 15 1 T69 Vic Murray Barmah Choke to Nyah Diversion licence 96 E** A*** 15 1 T72 Vic Murray Torrumbarry Diversion licence 96 E** A*** 15 1 T2 NSW Murray Murray Irrigation Ltd. General security 70 a E** A*** ∞ 2 T5 NSW Murray West Corurgan Irrigation Trust General security 70 a E** A*** ∞ 2 T8 NSW Lower Darling Menindee Lake to Wentworth Weir General security 70 a E** A*** ∞ 2 T11 NSW Murrumbidgee Murrumbidgee Irrigation Area General security 70 a E** A*** ∞ 2 T14 NSW Murrumbidgee Coleambally Irrigation Area General security 70 a E** A*** ∞ 2 T17 NSW Murrumbidgee Burrinjunk to Murray General security 70 a E** A*** ∞ 2 T20 NSW Murrumbidgee Yanco/Billabong Creek System General security 70 a E** A*** ∞ 2 T23 NSW River Murray Channel Hume to Barmah Choke General security 70 a E** A*** ∞ 2 T26 NSW River Murray Channel Barmah Choke to Nyah General security 70 a E** A*** ∞ 2 T29 NSW River Murray Channel Nyah to SA Border General security 70 a E** A*** ∞ 2 T48 Vic Broken Nillahcootie to Casey's Weir Diversion licence 70 a E** A*** 15 2 T50 Vic Broken Casey's Weir to Goulburn River Diversion licence 70 a E** A*** 15 2 T60 Vic Bullarook Creek Bullarook Diversion licence 70 a E** A*** 15 2 T90 Vic Ovens Ovens Diversion licence 70 a E** A*** 15 2 T91 Vic King King Diversion licence 70 a E** A*** 15 2 T64 Vic Murray Hume to Barmah Choke Sales water 60 d 0 A** 1 3 T67 Vic Murray Murray Valley Irrigation District Sales water 60 d 0 A** 1 3 T70 Vic Murray Barmah Choke to Nyah Sales water 60 d 0 A** 1 3 T73 Vic Murray Torrumbarry Sales water 60 d 0 A** 1 3 T80 Vic Murray Nyah to SA Border (LIZ1) Sales water 60 d 0 A** c 1 3 T83 Vic Murray Nyah to SA Border (LIZ2) Sales water 60 d 0 A** c 1 3 T86 Vic Murray Nyah to SA Border (LIZ3) Sales water 60 d 0 A** c 1 3 T89 Vic Murray Nyah to SA Border (LIZ4) Sales water 60 d 0 A** c 1 3 T3 NSW Murray Murray Irrigation Ltd. Supplementary water 50 b 0 A* 2 3 T6 NSW Murray West Corurgan Irrigation Trust Supplementary water 50 b 0 A* 2 3 T9 NSW Lower Darling Menindee Lake to Wentworth Weir Supplementary water 50 b 0 A* 2 3 T12 NSW Murrumbidgee Murrumbidgee Irrigation Area Supplementary water 50 b 0 A* 2 3 T15 NSW Murrumbidgee Coleambally Irrigation Area Supplementary water 50 b 0 A* 2 3 T18 NSW Murrumbidgee Burrinjunk to Murray Supplementary water 50 b 0 A* 2 3 T21 NSW Murrumbidgee Yanco/Billabong Creek System Supplementary water 50 b 0 A* 2 3 T24 NSW River Murray Channel Hume to Barmah Choke Supplementary water 50 b 0 A* 2 3 T27 NSW River Murray Channel Barmah Choke to Nyah Supplementary water 50 b 0 A* 2 3

i

h

j

k

l


T30 NSW River Murray Channel Nyah to SA Border Supplementary water 50 b 0 A* 2 3 T33 Vic Goulburn Great Goulburn Sales water 40 c 0 A** 1 3 T36 Vic Goulburn Boort Sales water 40 c 0 A** 1 3 T39 Vic Goulburn Pyramid-Boort Sales water 40 c 0 A** 1 3 T42 Vic Goulburn Rochester Sales water 40 c 0 A** 1 3 T45 Vic Goulburn Central Goulburn Sales water 40 c 0 A** 1 3 T54 Vic Campaspe Campaspe Sales water 40 c 0 A** 1 3 T57 Vic Campaspe Campaspe Irrigation District Sales water 40 c 0 A** 1 3 T47 Vic Goulburn Lower Goulburn Sales water 40 c 0 0 1 3 T49 Vic Broken Nillahcootie to Casey's Weir Sales water 40 c 0 0 1 3 T51 Vic Broken Casey's Weir to Goulburn River Sales water 40 c 0 0 1 3 T59 Vic Loddon Loddon Sales water 40 c 0 0 1 3 T61 Vic Bullarook Creek Bullarook Sales water 40 c 0 0 1 3

Notes: 1. Shading indicates currently in the Pilot Interstate Water Trading Project areas.

2. In Vic, temporary transfer of water entitlement allows allocated Water right and/or up to 30% of allocated Sales water, or Licences volume, to be traded from one customer to another for one season only. Temporary trading of above 30% Sales water in gravity irrigation districts is not allowed, and irrigators will not be allowed to use above 30% Sales water if any of their water entitlement (i.e., Water right or Diversion licence) is temporarily traded. Pumped Irrigation Districts and Division Licence holders are not able to trade their Sales water (e.g., T47, T49, T51, T59 and T61 in group m are not tradable), and will not have access to any Sales water if any of their Water right (or Licence volume) is temporarily traded.

n

m


Appendix 5. Grouping 9 categories and 112 types of irrigation entitlements into 14 groups

Stock &

dom

estic

High security

Diversion license

High security

Water right

High security

Diversion licence

General

security

Diversion licence

Sales w

ater

Sales w

ater

Supplem

entary w

ater

Sales w

ater

Sales w

ater

Irrigation

Irrigation

Entitlement Category

Water

(holding)

Water

(holding)

9 Categories 1 3 1 3 1 1 1 1 1 1 1 1 1 1

Entitlement Type

Code

T98 T101 T108

T7 T28 T99 T100 T102 T103 T109 T110T111 T112

T75 T77 T79 T82 T85 T88

T1 T4 T22 T25 T92 T93 T94 T95 T96 T97 T104 T105 T106 T107

T31 T34 T37 T40 T43 T52 T55 T62 T65 T68 T71 T74 T76 T78 T81 T84 T87

T10 T13 T16 T19

T32 T35 T38 T41 T44 T46 T53 T56 T58 T63 T66 T69 T72

T2 T5 T8 T11 T14 T17 T20 T23 T26 T29

T48 T50 T60 T90 T91

T64 T67 T70 T73

T80 T83 T86 T89

T3 T6 T9 T12 T15 T18 T21 T24 T27 T30

T33 T36 T39 T42 T45 T54 T57

T47 T49 T51 T59 T61

112 Types 3 10 6 14 17 4 13 10 5 4 4 10 7 5

Group a b c d e f g h i j k l m n

Supply reliability (%) 100 >97 96 >97 96 >95 96 70 a 70 a 60 d 60 d 50 b 40 c 40 c

Entitlement tradability E*** E*** E*** E** E** E** E** E** E** 0 0 0 0 0

Allocation tradability A*** A*** A*** A*** A*** A*** A*** A*** A*** A** A**e A* A** 0

Tenure (year) ∞ ∞ 5 ∞ ∞* ∞ 15 ∞ 15 1 1 2 1 1 Attr

ibut

es

Access priority 1 1 1 1 1 1 1 2 2 3 3 3 3 3

Notes: a. 70 is indicative of the average supply reliability of NSW General security entitlements and some Victorian Diversion licences.

b. 50 is indicative of the supply reliability of NSW Supplementary water entitlements.

c. 40 is indicative of the supply reliability of Vic Sales water in Goulburn system.

d. 60 is indicative of the supply reliability of Vic Sales water in Murray system.

e. Water allocations can only be purchased from Goulburn-Murray trading zone.

Entitlement and allocation tradability is defined in terms of whether or not they are tradable among States (***), within the State (**), only within the region (*) or un-tradable (0).

Tenure is defined in terms of whether or not the licence term is either perpetual (∞) or ongoing (∞*), or has a specific term (normally issued for a number of years).


Appendix 6. Fourteen groups of irrigation entitlements in the SCRMS

Attributes En

title

men

t Ty

pe C

ode

Riv

er V

alle

y

Irrig

atio

n M

anag

emen

t Zo

ne

Entit

lem

ent

Gro

up

Supp

ly

relia

bilit

y (%

) En

title

men

t tr

adab

ility

(p

erm

anen

t) A

lloca

tion

trad

abili

ty

(tem

pora

ry)

Tenu

re

(yea

r)

Acc

ess

prio

rity

T98 SA River Murray Prescribed Watercourse Individual operation licences 100 E*** A*** ∞ 1 T101 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (highlands) 100 E*** A*** ∞ 1 T108 SA Angas Bremer Prescribed Well Area Angas Bremer

A1

100 E*** A*** ∞ 1 T7 NSW Lower Darling Menindee Lake to Wentworth Weir >97 E*** A*** ∞ 1 T28 NSW River Murray Channel Nyah to SA Border >97 E*** A*** ∞ 1 T99 SA River Murray Prescribed Watercourse Individual operation licences >97 E*** A*** ∞ 1

T102 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (highlands) >97 E*** A*** ∞ 1 T109 SA Angas Bremer Prescribed Well Area Angas Bremer >97 E*** A*** ∞ 1 T111 Barossa Prescribed Water Resources Area Barossa (connected via pipeline) >97 E*** A*** ∞ 1 T100 SA River Murray Prescribed Watercourse Individual operation licences >97 E*** A*** ∞ 1 T103 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (highlands) >97 E*** A*** ∞ 1 T110 SA Angas Bremer Prescribed Well Area Angas Bremer >97 E*** A*** ∞ 1 T112 Barossa Prescribed Water Resources Area Barossa (connected via pipeline)

A2

>97 E*** A*** ∞ 1 T75 Vic Murray Nyah to SA Border (HIZ) 96 E*** A*** 5 1 T77 Vic Murray First Mildura Irrigation Trust (HIZ) 96 E*** A*** 5 1 T79 Vic Murray Nyah to SA Border (LIZ1) 96 E*** A*** 5 1 T82 Vic Murray Nyah to SA Border (LIZ2) 96 E*** A*** 5 1 T85 Vic Murray Nyah to SA Border (LIZ3) 96 E*** A*** 5 1 T88 Vic Murray Nyah to SA Border (LIZ4)

A3

96 E*** A*** 5 1 T1 NSW Murray Murray Irrigation Ltd. >97 E** A*** ∞ 1 T4 NSW Murray Western Murray Irrigation Ltd. >97 E** A*** ∞ 1 T22 NSW River Murray Channel Hume to Barmah Choke >97 E** A*** ∞ 1 T25 NSW River Murray Channel Barmah Choke to Nyah >97 E** A*** ∞ 1 T92 SA River Murray Prescribed Watercourse Central Irrigation Trust >97 E** A*** ∞ 1 T94 SA River Murray Prescribed Watercourse Renmark Irrigation Trust >97 E** A*** ∞ 1 T96 SA River Murray Prescribed Watercourse Sunlands and Golden Heights Irrigation Trusts >97 E** A*** ∞ 1

T104 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (private) >97 E** A*** ∞ 1 T106 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (government)

A4

>97 E** A*** ∞ 1


T93 SA River Murray Prescribed Watercourse Central Irrigation Trust >97 E** A*** ∞ 1 T95 SA River Murray Prescribed Watercourse Renmark Irrigation Trust >97 E** A*** ∞ 1 T97 SA River Murray Prescribed Watercourse Sunlands and Golden Heights Irrigation Trusts >97 E** A*** ∞ 1

T105 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (private) >97 E** A*** ∞ 1 T107 SA Lower Murray Prescribed Watercourse Lower Murray Swamps (government) >97 E** A*** ∞ 1 T31 Vic Goulburn Great Goulburn 96 E** A*** ∞* 1 T34 Vic Goulburn Boort 96 E** A*** ∞* 1 T37 Vic Goulburn Pyramid-Boort 96 E** A*** ∞* 1 T40 Vic Goulburn Rochester 96 E** A*** ∞* 1 T43 Vic Goulburn Central Goulburn 96 E** A*** ∞* 1 T52 Vic Campaspe Campaspe 96 E** A*** ∞* 1 T55 Vic Campaspe Campaspe Irrigation District 96 E** A*** ∞* 1 T62 Vic Murray Hume to Barmah Choke 96 E** A*** ∞* 1 T65 Vic Murray Murray Valley Irrigation District 96 E** A*** ∞* 1 T68 Vic Murray Barmah Choke to Nyah 96 E** A*** ∞* 1 T71 Vic Murray Torrumbarry 96 E** A*** ∞* 1 T74 Vic Murray Nyah to SA Border (HIZ) 96 E** A*** ∞* 1 T76 Vic Murray First Mildura Irrigation Trust (HIZ) 96 E** A*** ∞* 1 T78 Vic Murray Nyah to SA Border (LIZ1) 96 E** A*** ∞* 1 T81 Vic Murray Nyah to SA Border (LIZ2) 96 E** A*** ∞* 1 T84 Vic Murray Nyah to SA Border (LIZ3) 96 E** A*** ∞* 1 T87 Vic Murray Nyah to SA Border (LIZ4)

A5

96 E** A*** ∞* 1 T10 NSW Murrumbidgee Murrumbidgee Irrigation Area >95 E** A*** ∞ 1 T13 NSW Murrumbidgee Coleambally Irrigation Area >95 E** A*** ∞ 1 T16 NSW Murrumbidgee Burrinjunk to Murray >95 E** A*** ∞ 1 T19 NSW Murrumbidgee Yanco/Billabong Creek System

A6

>95 E** A*** ∞ 1 T32 Vic Goulburn Great Goulburn 96 E** A*** 15 1 T35 Vic Goulburn Boort 96 E** A*** 15 1 T38 Vic Goulburn Pyramid-Boort 96 E** A*** 15 1 T41 Vic Goulburn Rochester 96 E** A*** 15 1 T44 Vic Goulburn Central Goulburn 96 E** A*** 15 1 T46 Vic Goulburn Lower Goulburn 96 E** A*** 15 1 T53 Vic Campaspe Campaspe 96 E** A*** 15 1 T56 Vic Campaspe Campaspe Irrigation District

A7

96 E** A*** 15 1


T58 Vic Loddon Loddon 96 E** A*** 15 1 T63 Vic Murray Hume to Barmah Choke 96 E** A*** 15 1 T66 Vic Murray Murray Valley Irrigation District 96 E** A*** 15 1 T69 Vic Murray Barmah Choke to Nyah 96 E** A*** 15 1 T72 Vic Murray Torrumbarry 96 E** A*** 15 1 T2 NSW Murray Murray Irrigation Ltd. 70 a E** A*** ∞ 2 T5 NSW Murray West Corurgan Irrigation Trust 70 a E** A*** ∞ 2 T8 NSW Lower Darling Menindee Lake to Wentworth Weir 70 a E** A*** ∞ 2 T11 NSW Murrumbidgee Murrumbidgee Irrigation Area 70 a E** A*** ∞ 2 T14 NSW Murrumbidgee Coleambally Irrigation Area 70 a E** A*** ∞ 2 T17 NSW Murrumbidgee Burrinjunk to Murray 70 a E** A*** ∞ 2 T20 NSW Murrumbidgee Yanco/Billabong Creek System 70 a E** A*** ∞ 2 T23 NSW River Murray Channel Hume to Barmah Choke 70 a E** A*** ∞ 2 T26 NSW River Murray Channel Barmah Choke to Nyah 70 a E** A*** ∞ 2 T29 NSW River Murray Channel Nyah to SA Border

B1

70 a E** A*** ∞ 2 T48 Vic Broken Nillahcootie to Casey's Weir 70 a E** A*** 15 2 T50 Vic Broken Casey's Weir to Goulburn River 70 a E** A*** 15 2 T60 Vic Bullarook Creek Bullarook 70 a E** A*** 15 2 T90 Vic Ovens Ovens 70 a E** A*** 15 2 T91 Vic King King

B2

70 a E** A*** 15 2 T64 Vic Murray Hume to Barmah Choke 60 d 0 A** 1 3 T67 Vic Murray Murray Valley Irrigation District 60 d 0 A** 1 3 T70 Vic Murray Barmah Choke to Nyah 60 d 0 A** 1 3 T73 Vic Murray Torrumbarry

C1

60 d 0 A** 1 3 T80 Vic Murray Nyah to SA Border (LIZ1) 60 d 0 A** c 1 3 T83 Vic Murray Nyah to SA Border (LIZ2) 60 d 0 A** c 1 3 T86 Vic Murray Nyah to SA Border (LIZ3) 60 d 0 A** c 1 3 T89 Vic Murray Nyah to SA Border (LIZ4)

C2

60 d 0 A** c 1 3 T3 NSW Murray Murray Irrigation Ltd. 50 b 0 A* 2 3 T6 NSW Murray West Corurgan Irrigation Trust 50 b 0 A* 2 3 T9 NSW Lower Darling Menindee Lake to Wentworth Weir 50 b 0 A* 2 3 T12 NSW Murrumbidgee Murrumbidgee Irrigation Area 50 b 0 A* 2 3 T15 NSW Murrumbidgee Coleambally Irrigation Area 50 b 0 A* 2 3 T18 NSW Murrumbidgee Burrinjunk to Murray

C3

50 b 0 A* 2 3


T21 NSW Murrumbidgee Yanco/Billabong Creek System 50 b 0 A* 2 3 T24 NSW River Murray Channel Hume to Barmah Choke 50 b 0 A* 2 3 T27 NSW River Murray Channel Barmah Choke to Nyah 50 b 0 A* 2 3 T30 NSW River Murray Channel Nyah to SA Border 50 b 0 A* 2 3 T33 Vic Goulburn Great Goulburn 40 c 0 A** 1 3 T36 Vic Goulburn Boort 40 c 0 A** 1 3 T39 Vic Goulburn Pyramid-Boort 40 c 0 A** 1 3 T42 Vic Goulburn Rochester 40 c 0 A** 1 3 T45 Vic Goulburn Central Goulburn 40 c 0 A** 1 3 T54 Vic Campaspe Campaspe 40 c 0 A** 1 3 T57 Vic Campaspe Campaspe Irrigation District

C4

40 c 0 A** 1 3 T47 Vic Goulburn Lower Goulburn 40 c 0 0 1 3 T49 Vic Broken Nillahcootie to Casey's Weir 40 c 0 0 1 3 T51 Vic Broken Casey's Weir to Goulburn River 40 c 0 0 1 3 T59 Vic Loddon Loddon 40 c 0 0 1 3 T61 Vic Bullarook Creek Bullarook

C5

40 c 0 0 1 3

Documents

Simplifying Complexity: A Framework for the ...4.2 Water entitlements in regulated surface water system 9 4.3 Irrigation entitlements in regulated surface water system 11 5 Opportunities