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Water Auctions and Trading

Macalister Irrigation District Online Auction
 
A minimum of 40 ML of seasonal allocation will be auctioned
 
Auction date: 18 – 20 December
Start time: 11am 18 December, closure times for each lot will be displayed on WaterBid.
 
No reserve
 
All bidding will be via Waterbid
 
Allocation for the 2018-19 Season
 

Water auctions and water trading 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.

Water availability

Opportunities to access water entitlement in the Southern Rural Water area

There are a range of opportunities to access water for development with the SRW area. The below maps and Water Sales Strategy summarise some of the main opportunities.

These are areas where the boundary of the groundwater system (or surface water system) has been defined and a cap has been placed on the level of entitlement. New entitlement is available where the current licence volume is lower than the cap. The preferred government policy is to release this water via a sales process, to ensure equity. This is usually preceded by an expression of interest process. Below (‘Water Sales Map 2018 19’) shows the location and volume of planned sales of groundwater and surface water entitlement for 2018-19.

Note that the proposed Moe GMU sales process will exclude the Shady Creek zone, which is in a restricted area. There are additional potential areas where future sales of entitlement may occur (after June 2019). Some of these areas are shown on the attached map ‘Future Potential Water Sales’.

Click here to download the 2018_19 Water Sales Strategy

WaterMatch - online trading

Watermatch is a free online service, designed to help people trade water.

Once you have registered, you can advertise to buy or sell water.

Depending on the water that you wish to trade, choose from the Groundwater, Surface Water (rivers and creeks) and Irrigation District forum.

Select a new topic to create your ad. Your ad can be to buy or sell water, and must describe the source of your water, quantity of water you want to buy or sell, how long you want to trade for and your contact details. If you are happy to put a buying or selling price, this can be included here too.

If you want to respond to an ad, you can use the email link or contact the advertiser direct.

It is an online trading forum, and can also be used by people who are not on the internet, with help from our staff.

Watermatch allows you to register your interest in either buying or selling water in southern Victoria.

  • the Macalister, Werribee and Bacchus Marsh Irrigation District
  • Groundwater systems in southern Victoria
  • Rivers and creek systems in southern Victoria (other than those managed by Melbourne Water around the Port Phillip region).

Who can use it?
Anyone can use watermatch. You may be an existing licence holder who wants to sell water, or buy more water.

You may not currently have a licence, but you want to buy water in the region.

How does it work?

  • click here to enter Watermatch
  • register as a user (a very simple process)
  • go to the system or district you are interested in and check current entries
  • add in any entry for any water you want to sell or buy

What information should I include in my ad?

  • If you are wanting to buy or sell
  • your name
  • phone number
  • name of river, creek, groundwater management area or irrigation district
  • how much water is to be traded
  • If the trade is temporary or permanent
  • term of the trade (Maximum term is 5 years)

Things you need to know
We are always looking for ways to improve our customer service. If you would like to provide feedack or suggested improvements please click here.

it’s important to note that Southern Rural Water is not acting, and will not act, as a water broker.

We cannot advise you on price of water or match you individually with a buyer/seller.

Buyers and sellers still need to go through our normal application process.

Trading applications must be submitted to Southern Rural Water and approval granted before water is taken. A water transfer application form can be downloaded from our application page.

If you want to trade upstream, please speak with one of our Assessment Officers prior to submitting an application.

To check if a buyer or seller can trade with you, call us on 1300 139 510 and ask to speak to an Assessment Officer.

Not a water broker

It’s important to note that Southern Rural Water is not acting, and will not act, as a water broker.

We cannot advise you on price of water or match you individually with a buyer/seller.

Buyers and sellers still need to go through our normal application process.

Click here to download our Fact Sheet

WaterBid auction results

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.

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
Irrigation District trading

If you would like to trade water from your Allocation Bank Account in any of the following districts please read the information below:

  • Macalister Irrigation District, and river diverters from the Macalister and Thomson Rivers and Rainbow Creek
  • Bacchus Marsh Irrigation District, Werribee Irrigation District and river diverters from the Werribee River.

Why trade water?
Water in our irrigation areas is fully allocated; therefore no new water is available.

To help make the most of water on hand, we ask anyone who does not plan to use their water to consider trading to others in the area.

Water trading can help to:

  • reduce your water bill
  • provide additional income
  • maximise productivity for the district
  • build the local economy.

As a purchaser, water trading can help to meet your needs during a dry spell, or when your existing allocation is not enough.

What types of trades are available?

Allocation trade
You can trade any unused allocation from your allocation bank account (ABA). These trades are for one season only and finish on 30 June each year. Water must be used by 30 June in the season in which the trade occurred. If this water remains unused at 30 June, it will be returned to the communal pool for allocation the following year.

Limited term transfer

This is where you lease your water share to someone else for a set period of time. The transfer period can be from 1 year to 20 years, and the transfer does not change the legal ownership of the water share.

A Limited Term Transfer will remain in place until it expires or is surrendered, even if the water share is transferred permanently (see below).

The lessee is called the holder of the Limited Term Transfer, and is the only person who can surrender or cancel the Limited Term Water Share Transfer before its expiry date.

Any allocations held by the seller at the time of the transfer remain in the seller’s ABA, but can be traded by the seller via an Allocation Trade (see above). Any further allocations will be added to the holder’s ABA.

Permanent transfer

This is when you sell all or part of a water share. The legal ownership of the water share changes, but any existing Limited Term Transfers against that water share will remain in place until they either expire or are surrendered.

Delivery share transfer
This is the permanent transfer of all or part of your delivery share rate. Restrictions apply where a delivery share can be traded within the district, as they directly relate to and influence the capacity of each of the delivery systems in the district.

Groundwater, Rivers and Creeks trading

Why transfer or trade water?

In many areas throughout Southern Victoria, water is fully allocated and new entitlements are not available. In these areas, the only option to get new water is to transfer or trade from an existing licence holder.

This is also a good way to obtain more water during a dry period when your existing licence volume is not enough, or get some money back on water that you are not using.

Trades can be on a permanent or temporary basis. A transfer occurs when a property changes hands and the licence goes to the new owner.

Who can transfer water?

Water can be transferred between:

  • existing licensed holders, or
  • from an existing licence holder to a person without a pre-existing licence

Temporary trades

Temporary trades can occur when a licence holder leases either all or some of their water entitlement to another user for a fixed period of time.

In most areas this can be for a minimum one financial year up to a maximum of five financial years at any one time. The licence will automatically revert to the owner on 1 July, when the trade expires.

Permanent trade

Permanent trades occur when a licence owner sells ownership of some or all of their licence to another person. This process does not involve any type of land transfer.

Transfer of licence ownership – property purchase

Water licences are not automatically transferred with the sale of a property. A properly completed transfer application form must be submitted to SRW before a licence will be transferred, regardless of what appears in a sale contract.

We strongly suggest that this is clarified with your agent or solicitor and noted in the contract of sale before signing property purchase documents.

You or your agent can apply for an information statement from us to confirm water licence details linked to the land, tariffs applicable to the licence and also any outstanding monies or debts.

How do I trade water?

Transfers can only occur within the same groundwater area or surface water catchment, with many areas being subject to specific transfer rules. To apply to transfer water you must apply using the appropriate form, and submit the correct application fees.

If you are unsure of the transfer rules in your area, it is best to contact us to discuss your proposal in more detail.

Licence holders wanting to transfer water must apply to Southern Rural Water, and the application must be approved before the water is used.

How are prices set for water transfers?

The price for the water needs to be negotiated between the seller and buyer. Southern Rural Water does not play a role in transfer price negotiations.

Case studies

Click here to read six real experiences with groundwater trading.

Click here to download our Water Trading and Transfer booklet.

Click here to download Water Transfers – Groundwater and Unregulated Surfacewater

Water Trading in the Macalister Irrigation District

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