About water brokers and exchanges
Water brokers and exchanges are sometimes referred to as water market intermediaries.
They play an important role in the water market bringing buyers and sellers together, reducing search costs and improving information flows.
Water brokers perform a similar function to mortgage brokers. On behalf of their clients, they:
- investigate trading options
- arrange the necessary paperwork
- help obtain regulatory approvals.
Water exchanges are a trading platform. They:
- match buyers and sellers through an automated process or bulletin board
- organise and submit the necessary paperwork to trade approval authorities.
Water brokers and exchanges are, like other businesses in Australia, subject to the Australian Consumer Law, which protects consumers from certain unfair behaviour by businesses. They may also be subject to the water markets intermediaries code depending on the type of service they provide and whether it is for a fee or commission.
Fair trading obligations
The ACCC enforces the Competition and Consumer Act 2010. This includes the Australian Consumer Law, which protects consumers from unfair behaviour by businesses. These protections are in addition to obligations under the water markets intermediaries code.
Consumers are protected from unfair business practices. This means water market intermediaries must not:
- put unfair terms in standard form contracts
- engage in misleading or deceptive conduct
- make false or misleading representations
- accept payment if they are unable to deliver
- engage in unconscionable conduct
- use harassment or coercion.
Consumer guarantees mean that consumers have the right to expect certain things when they receive a service from water market intermediaries.
Anti-competitive conduct is prohibited. This includes agreements or understandings with other brokers or exchanges about prices or who to deal with.
Advising the Murray–Darling Basin Authority
The Murray–Darling Basin Authority is responsible for:
Before the Murray–Darling Basin Authority can amend the Basin Plan water trading rules, it must get advice from the ACCC.
See Water trading rules: advice development.
A role in regulating other water market conduct
From 1 July 2026, the ACCC will also be responsible for enforcing new laws in the trade of water in the Murray-Darling Basin.
These relate to the:
- disclosure of water markets information
- prohibition of insider trading
- prohibition of market manipulation.
The new functions were recommended by the water market reform roadmap which responded to the ACCC’s water markets inquiry.
