High Reliability vs Low Reliability

The storage dam holds a defined volume of water that is classed according to reliability. This means that a high reliability water share has a high chance of receiving full seasonal allocation, whilst a low reliability water share has a low chance of receiving full seasonal allocation.

In simpler terms, the first water that is captured in the new irrigation season is allocated back to the entitlement holder that owns high reliability water shares and when the high reliability water shares have reached 100% allocation and existing commitments satisfied, then the Resource Manager will look at seasonal allocation for low reliability water shares.

Trading Rules, Forward Markets & Ordering Water

Trading Rules

Trading rules exist and are amended by the Minister for Water to ensure that trade is encouraged with no negative impacts to other users within the system or the environment. The basis of the trading rules are whether a water entitlement in one catchment or system can be delivered to another system, and act to assist the Water Authorities in ensuring this occurs.

Forward Markets

Forward water is the ability to purchase water allocation water (temporary) in future irrigation seasons at an agreed price and an agreed time frame. This allows for planning of budgets and cropping with assurance as to water price and delivery. The buyer risks paying a premium price for water but considering the volatility of the market, can be a comforting plan for your business.

Ordering Water

Each Water Authority has a Watering System that allows you to either log in or call up to order Water. Modernised systems require 48 hours for water delivery whilst modern systems only require 24 hours. These systems allow for you to monitor your ABA Account and better manage your water requirements with the Water Authority.

Delivery Shares

A delivery share is an entitlement to have water delivered to land in an irrigation area. It gives you access to a share of the available capacity in the channel or piped network that supplies water to your property. A Delivery Share is defined by a rate of megalitres per day (ML/day).

A delivery share is tied to the land and stays with the property if it is bought or sold. Delivery shares do not transfer off the land when the water shares are sold.

In July 2006, 12 months prior to the unbundling of land and water, Goulburn Murray Water introduced the rule that when water shares (previously called permanent water) were sold off the farm, the infrastructure costs stayed with the farm. Infrastructure costs referred to the cost of the channels/piping of the water. Once land and water unbundled in July 2007, infrastructure costs were renamed to Delivery Shares.

The benefit of a Delivery Share is that in periods of high demand on a channel system, the delivery share rate is used by the Water Authority to determine how deliveries are rationed.