There are three water markets currently operating in Queensland:
Establishing water markets provides certainty for the water industry, and helps create a stable and more attractive business environment. Trading water allocations can facilitate better decision making about usage and requirements. Over time, this promotes efficiency and can make businesses more profitable.
The benefits of trading water:
- helps people clearly see the value of their water as a secure asset, and obtain finance against its value
- encourages water-use efficiency — by allowing allocation holders to sell, lease or seasonally assign spare water
- enables holders of entitlements who want to stop production to sell their water without selling their land
- enables users to increase water supplies and improve the reliability of current allocations, and to switch to and alternative use of the water that may generate higher returns
- enables new industries to acquire water without jeopardizing the environment, or affecting other water users.