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Australia's water trading and entitlements market explained


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The breaking of the drought in south-eastern Australia has brought a dramatic reduction in the price of water allocations across the region.
But the price of water entitlements – the permanent right to receive an allocation of water – dipped only marginally with the rain. If anything, entitlement prices have actually started to rise again.
Barbers Creek, a Murray River tributary in the Murray-Darling Basin. 
Nick Moir
Water trading is a big market. The total value of private water entitlements held in the southern Murray-Darling Basin – the Murray, Murrumbidgee and Goulburn systems – is more than $25 billion.
Including the northern Murray-Darling Basin – the Darling River and its tributaries – more than $1.8 billion worth of water allocations are traded, on average, every year. ....

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