National Water Commission supports Victorian water trade register

National Water Commissioners met in Canberra to examine progress on some of the major water reform issues facing Australia. At the meeting, Victorian representatives showcased the development of the Victorian State Water Register.

"This innovative system is boosting commercial confidence in water markets by improving the registration and trade of water entitlements," said chairman Ken Matthews.

"Having offered to contribute $5 million in funding from the Australian Government Raising National Water Standards Programme towards its development, the commission is pleased to be working with the Victorian government on such an important project.

"One of the key objectives of the National Water Initiative is the progressive removal of barriers to trade in water. The commission therefore welcomes the development of the Victorian State Water Register, which represents a significant step in delivering broader and deeper water trading.

"Replacing seven separate registers currently operated by Victorian rural water authorities, this consolidated system provides a single integrated record of all Victorian water entitlements.

"The register draws together a wealth of information to support water planning and decision making. It will include up-to-date online information about prices and volumes being traded, as well as information on allocations and entitlements," Matthews said.

The register began operating in northern Victoria on 1 July 2007, and is expected to be introduced into southern Victoria by 1 July 2008. In its first few months of operation, the register recorded a significant volume of trades with 780 water share transfer applications and 882 temporary trade applications.

"The system will be a key asset for managing Victoria's scarce water resources. It is flexible and can be adapted to manage different market requirements," Matthews said.

"The commission urges other states and territories to take up this approach and broaden water trade across state boundaries. The Victorian State Water Register is an excellent example of the progress that can be achieved when governments work together under the National Water Initiative to meet the challenges of national water reform."