What is Allocation Trading?
Allocation Trading allows the opportunity for allocation water to be transferred from a seller to a buyer. Water can trade between trading zones within Victoria and interstate – subject to the trading rules.
Once water gained legal title in July 2007, the Victorian Water Register was established and all prices for Allocation trades are now published on this web site for public access.
Prices are live – meaning that as trades are approved, the volume of water sold and the trade price is recorded. This information gives the market transparency and assists seller and buyers in determining the current market price.
Once the water purchased in a Allocation Trade is used, the right to the water for the current irrigation season has gone.
To visit the Victorian Water Regiser click here.
Allocation Bank Account – ABA
Allocation is held in what we call an ABA – which stands for Allocation Bank Account. ABA account keeps track of allocations available and any water that you use or trade. ABA’s are created with specific Delivery Source and Delivery Use attributes. As there are trading rules between the various systems and states, the Water Register looks at the ABA attributes prior to approving the trade.
Traditionally only water share owners could have an ABA account. As of 1st July 2014, as part of the Murray Darling Basin Plan, the rules changed and now anyone can apply for an ABA account. For example, a farmer operating in the Goulburn system can apply for an ABA in the Murray (Victorian) system without having to own Murray Water Shares on a permanent basis (and vice versa).
ABA account holders can order an ABA statement from the Water Authority. An ABA statement summarizes the transactions on the account, including an water carried over from previous season.