In December 2007, the minister wrote to the ACCC requesting advice on the water market rules as required under ss.98(1) of the Water Act 2007 by December 2008.
The purpose of the water market rules is to free up the trade of water access rights within the Murray-Darling Basin. The rules allow this by enabling irrigators to 'transform' their share of the water entitlements held on their behalf by operators into separately held entitlements.
The ACCC provided its advice and recommended water market rules in December 2008.
On 11 February 2009, the minister issued a public notice proposing to make water market rules. The rules were registered by the Minister for Climate Change and Water (the minister) on 22 June 2009 and came into effect on 23 June 2009.
This advice has considered, through the ACCC's extensive consultation, stakeholder submissions responding to an issues paper, a position paper, and draft advice. The ACCC also conducted public forums in regional centres on the draft advice for water market rules and water charge (termination fees) rules. In total the ACCC received 130 submissions.
This advice also took into account the Basin water charging objectives and principles contained in schedule 2 of the Act and water market and trading objectives and principles contained in schedule 3 of the Act.