Murray-Darling Basin water markets inquiry

Terms of reference7 August 2019

The direction and terms of reference are available at:
Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Direction 2019.

Scope of inquiry

Matters to be taken into consideration by the inquiry will include but are not limited to:

  1. market trends since 2012, including the demand for water, changes in the location where water is used, the quantity of water traded, water availability, water users and their communities, development of new trading products, and the number of participants and sectors participating in the water markets;

  2. the role of carryover allocation practices in water markets;

  3. the role and practices of market participants, including water brokers, water exchanges, investment funds and significant traders of water allocations and entitlements;

  4. the availability to the public of information on water market activities and tradeable water right holdings;

  5. the timeliness, accuracy, and completeness of public information released on water market activities and tradeable water right holdings, including true trade price reporting and the types of trade (for example, immediate purchases, forward contracts, leases);

  6. barriers to entry, expansion and exit, including transaction costs;

  7. the management of constraints on the storage or delivery of water, including adjustments made to give effect to trades and intervalley transfers.