Water Rights and Trade: Meeting the Water Reform Agenda

Achieving Australia's water policy goals will require well functioning asset and physical markets for water and access to efficient storage and delivery services. A range of institutional reforms to water property rights are needed to ensure that these markets and services are operating efficiently. There are significant costs associated with establishing and enforcing more completely specified water property rights and it is important to focus on the reforms that are likely to generate the greatest overall benefits. Secure rights to water resources and access to storage and delivery infrastructure will promote ongoing investment in higher returning and more environmentally sound irrigation enterprises. However, the pace of adjustment will be tempered by existing sunk capital in both on- and off-farm infrastructure.