Water markets

Water abstraction and markets

	Legislation, regulation, statutory instruments, licences (colour code: orange)

	Institutions or individuals, such as a state minister & departments, authorities,water customers, associations & activities (colour code: green)

	Non-statutory documents & activities (colour code: blue)
	Document in draft form (colour code: red)
	Document or product under development (colour code: purple)

Rights in Water and Irrigation Act 1914
Provides the legislative basis for the planning, regulation, management, protection and allocation of water resources in Western Australia. The objectives of the legislation include providing for the management, sustainable use and development of water resources to meet the needs of current and future users, and for the protection of their ecosystems and the environment in which water resources are situated.
The Act provides for the permanent transfer of a licence or water entitlement (i.e. part of a licence), and also temporary transfer (called Agreements with licensees).
Water transfers are at the discretion of the Department of Water. Under the Act, the department may refuse a water transfer in order to:
• protect the environment and other users from damage
• ensure outcomes continue to be beneficial to the state
• prevent non-efficient uses and monopolies in water
• meet policy objectives
• encourage or preserve complementarity and diversity in the market
• protect the trading market from distortion.
It is intended that this Act will be repealed and replaced by new legislation to implement new water policy and water planning frameworks. Western Australia’s legislative reform program aims to consolidate 11 Acts (including this Act) into two Bills: the Water Services Bill; and the Water Resources Management Bill.
Under the Water Resources Management Bill and in accordance with the National Water Initiative, it is intended that water trading will be supported by water allocation plans, and conducted in accordance with rules in the plans.

Minister for Water
Has responsibility for the Department of Water, Water Corporation, Busselton Water Board and Aqwest (Bunbury Water Board). The Minister is supported by the Department of Water.

Department of Water
Has prime responsibility for water allocation planning and administration of water rights and entitlements in Western Australia. The department is also responsible for approving permanent and temporary trade of licences or water entitlements (i.e. part of a licence), in accordance with the Rights in Water and Irrigation Act 1914 and Statewide policy No. 6 – Transferable (tradeable) water entitlements for Western Australia.
www.water.wa.gov.au

Policy including Statewide Policy no. 6 Transferable (tradeable) water entitlements for Western Australia
Administered by the Department of Water, this policy provides rules to facilitate water trading within water systems in Western Australia. For water trading to occur, the following conditions are necessary:
• the seller holds title to a recognised, tradeable licence or water entitlement.
• access to additional water resources is restricted.

Licences
A licence to take water granted under the Rights in Water and Irrigation Act 1914 allows holders to take water in proclaimed or prescribed areas. If a water allocation plan exists for such an area, it sets the rules for licensing and the amount of water that can be allocated through licences.
Under the Rights in Water and Irrigation Act 1914, licences can be traded within water resource management units (WRMU). A WRMU is a defined area containing an aquifer or stream basin. Trades of licences and/or entitlements must occur within the limits of water availability and physical constraints of the relevant WRMU. Accordingly, in Western Australia, currently trades are only possible within WRMUs. Trades upstream in river systems may be further constrained by the availability of water.

Plans
These plans determine how much groundwater and surface water can be taken for domestic or commercial purposes while leaving enough water in the environment to meet ecological, recreational and cultural needs. They are developed by the Department of Water.
Licences are the statutory instrument that regulate individual take and use. Water allocation plans provide the management framework and rules for licensing in a specific management area. At present there are no statutory water allocation plans.

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