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Water Auctions and Sales

Water auctions are becoming more common across Southern Rural Water and can be a good way to gain access to extra water either for production or security.

 

Previous water auction results

Latrobe River temporary water sale - results 27 Nov 2020

In November, tenders were called for 800ML of temporary water from the Blue Rock Drought Reserve. The water was made available for sale by tender to customers on the Latrobe River system. One lot of 50ML sold for $40 per megalitre.

Macalister Irrigation District (MID) permanent water share auction - 3 April 2020

An annual auction of permanent water shares in the Macalister Irrigation District (MID) was conducted successfully online Friday 3 April 2020, through WaterBid.

A total of 92.8 megalitres (ML) high reliability water shares and 48.5 ML low reliability water shares were offered across 15 lots, all with allocation.

Buyers were predominantly dairy, beef and fodder businesses in the MID.

  • Winning bids ranged from $2,672.50 to $2,805 per megalitre for the high and low reliability bundled lots, with an average of $2,734.44 per megalitre.
  • The lots comprising only high reliability shares sold between $2,555 to $2,658.92 per megalitre, with an average of $2621.28 per megalitre.

Based on the results for the day the market is valuing low reliability water shares at an average of  $113 per megalitre.

Dilwyn aquifer allocation auction - December 2019

An auction of section 51 licences for a total allocation of 5,000 ML from the Dilwyn (deep) aquifer, near Warrnambool, were offered to registered bidders over the period from Tuesday 3 December 2019 to Wednesday 11 December 2019. The 15 lots offered ranged in size from 200ML to 500ML.  The auction was open for seven days and all lots were passed in after a total of 74 bids were placed, failing to meet the reserve.

Tarwin River winterfill auction - results 26-27 June 2019

An auction of Section 51 take and use licences for Tarwin River winterfill was completed 26-27 June. A total volume of 2,495ML was sold in 38 lots, ranging from 200ML to 5ML. All lots had multiple bidders, with some receiving over 40 bids. Prices ranged from $675 to $1,784 per ML. The average price was $1,494 per ML.

Latrobe River auction - results May 2019

A further auction of temporary water from the Blue Rock Drought Reserve was made available for auction to customers on the Latrobe River system.  The auction offered 285 ML in 8 lots ranging in size from 10ML to 50 ML. Three lots totalling 200ML sold at auction, with one further lot of 50ML sold off-the-shelf. The water sold for an average of $31 per megalitre.

Bacchus Marsh and Werribee Irrigation District auction - results May 2019

An auction for 230 megalitres (ML) of high reliability and 115 ML of low reliability water shares in the Bacchus Marsh and Werribee Irrigation Districts was conducted online between Tuesday 14 and Thursday 16 May 2019.  The lots were offered as: 26 lots of 5ML of HRWS with 2.5ML LRWS; and 5 lots of 20ML of HRWS with 10ML LRWS.  At the completion of the auction:

  • 26 lots were sold, ranging in size from 5ML high-reliability with 2.5 low-reliability water shares, to 20ML high reliability with 10ML low reliability water shares.
  • The results ranged between $1,000 and $1,405 per high and low combined megalitre.
  • 5 lots did not meet the reserve and were passed in.

Latrobe River auction - results April 2019

A further auction of temporary water from the Blue Rock Dought Reserve was made available for auction to customers on the Latrobe River system.  The auction offered 900 ML in 14 lots ranging in size from 10ML to 150 ML. The water sold for an average of $55.57 per megalitre.

Latrobe River auction - results February 2019

In response to drought conditions, temporary water from the Blue Rock Dought Reserve was made available for auction to customers on the Latrobe River system.  The auction offered 900 ML in 12 lots ranging in size from 25ML to 100 ML. The water sold for an average of $87.42 per megalitre.

MID Permanent water share auction - results 20 February 2019

The auction for 269 megalitres (ML) of permanent water shares in the Macalister Irrigation District was completed successfully yesterday (19 Feb) at Southern Rural Water’s office in Johnson Street, Maffra.

The lots were offered as high and low reliability bundles. There were successful bidders from dairy, beef and fodder enterprises in the district.

  • Prices ranged from a high of $2,200 per ML to $1,850 per ML
  • The average was $2,035 per ML

MID online  auction - results  20 December 2018

Irrigation customers paid an average of $282.29 per megalitre for water in the MID seasonal water online auction, which ended on 20 December.

The unreserved auction was for a total 134 ML of 2018-19 season water, sold in 10 lots between 5ML and 20ML. All lots sold with prices ranging from $251 to $310 per ML.

Moorabbin auction - results  December 2018

Section 51 licences for an allocation of 42.7 ML from the Moorabbin Groundwater Management Unit were auctioned to eligible bidders. Four lots were offered as: 4 x 10.6 ML and were successfully sold. The lots sold at an average of $1,343 per megalitre (ML), with a total of 117 bids placed.

MID online  auction - results  November 2018

MID customers paid an average of $263.75 per megalitre for water in the November MID seasonal water online auction.

The unreserved auction was for a total 40 ML of 2018-19 season water, sold in four lots of 10 ML. All lots sold with prices ranging from $252.50 to $277.50 per ML.

Parwan GMU auction - results  June 2018

Section 51 licences for an allocation of 48 ML from the Parwan Groundwater Management Unit were auctioned to eligible bidders when the auction closed on Thursday 28 June 2018. The seven lots were offered as: 4 x 5ML, 1 x 8ML and 2 x 10ML The auction was open for four days and all lots were successfully sold. The lots sold at an average of $1,201 per megalitre (ML), with a total of 120 bids placed.

WID and BMID auction - results April 2018

The final online allocation auction for the 2017-18 Werribee/Bacchus Marsh Irrigation District season closed Thursday 12 April with all lots sold to bidders registered on WaterBid.

The 155L seasonal allocation was offered in 14 lots, 5x5ML, 5x10ML, and 4 x 20ML. The auction was open for three days and all lots were successfully sold.

MID auction – results February 2018

The results from our recent online auction of water from the Macalister Irrigation District include:

  • Auction prices ranged from $44.25 and $14.31 per ML depending on the lot size
  • The auction proceeds will help fund modernisation works and other projects in the district

MID auction – results January 2018

The results from our recent online auction of water from the Macalister Irrigation District include:

  • Auction prices ranged from $80.50 and $20.10 per ML depending on the lot size
  • The auction proceeds will help fund modernisation works and other projects in the district

MID auction – results 21 December 2017

The results from our recent online auction of water from the Macalister Irrigation District include:

  • Auction prices ranged from $92.10 and $112.50 per ML depending on the lot size
  • The auction proceeds will help fund modernisation works and other projects in the district


MID auction - results 27 February 2017

The results from our recent online auction of water from the Macalister Irrigation District include:

  • Auction prices ranged from $117.50 to $161.25 per ML depending on the lot size
  • The auction proceeds will help fund modernisation works and other projects in the district

MID auction - results 23 January 2017

The results from our recent online auction of water from the Macalister Irrigation District include:

  • Auction prices ranged from $82.75 - 182.50 per ML depending on the lot size
  • The auction proceeds will help fund modernisation works and other projects in the district

Parwan GMU auction - results 24 June 2016

The results from our recent online auction of water from the Parwan GMU include:

  • Because of concerns about the high demand for water, Southern Rural Water offered 10ML lots to 11 customers who expressed interest before the auction at the reserve price
  • There were 10 registered bidders and four winning buyers (all market gardeners)
  • 8 out of 10 of the registered bidders actively participated in the auction
  • 490ML (all that was available at the auction) was sold
  • With the 110ML being sold beforehand, this makes a total of 600ML now in customer hands for use
  • Auction prices ranged from $800 to $2,234 per ML
  • The auction proceeds will help fund modernisation works and other projects in the district

Curdies River auction - results 10 June 2016

The results from our recent online auction of water from the Curdies River include:

  • 1,100 MLs (from 1,500ML on offer) were sold
  • The remainder will be available for sale in parcels at reserve prices
  • Prices ranged from $55 to $165 per ML depending on lot sizes.

Merri River auction - results 2 June 2016

The results from our recent online auction of water from the Merri River include:

  • The auction had two active bidders
  • 350 MLs (from 590ML) were sold
  • The remainder will be available for sale in parcels at reserve prices
  • Prices ranged from $50 to $70 per ML

Opportunities to acquire new water entitlement in the Southern Rural Water area

New groundwater or surface water entitlements are available where the current licensed volume is lower than the specified limit. The preferred government policy is to release this water via a sales process, to ensure equity. The sale process is usually preceded by an application process to determine the level of demand.

The following principles guide the sales process:

  • Maximise availabilitywe will make water available as soon as possible, having regard to ease of provision and market conditions. This may involve a series of permanent (share) sales and temporary (allocation) sales in order to put the water into production.
  • Maximise the uptakewe seek to maximise the uptake by promoting sales and encouraging customer participation.
  • Fair market pricewater will be sold at a fair price, having regard to the costs associated in making the water available (e.g. cost associated with resource appraisals, validations and the sales process) and prevailing market conditions.
  • Fair and open processwe seek to sell the majority of the water via an open and competitive process (e.g. auction or tender), albeit with the ability to reserve some water for ‘off the shelf sales’.

Southern Rural Water acknowledges and recognises Aboriginal people as the Traditional Owners and Custodians of the land and waters on which we work and live, and we respect their deep and ongoing connection to Country. For more about the First Nations peoples on whose Country we work, click here.