Download What Happens When Water Moves?

Project Note
June 2007
What Happens When Water Moves?
A study of the economic and social impacts of water trading in the Victorian Murray Valley.
Water Trade - a Driver of Change
Water trading in Australia developed to facilitate
efficient use of an increasingly scarce resource
by enabling water to move to more highly
valued uses. Yet from the beginning, concerns
were expressed about the economic and social
impacts of water trade.
This study sought to differentiate between
the impacts of water trade, and the changes
resulting from other influences on irrigators,
industries and communities in regions where
water trading is most prevalent - the Victorian
side of the Murray. Interviews were conducted
with 33 farmers and 112 community residents
in the regions of Sunraysia, Rochester, Central
Goulburn, Kerang-Cohuna and Pyramid-Boort.
years of low seasonal allocations (including two
extraordinarily low seasonal allocations in the
past five years).
Social Implications
Water trade can have both positive and negative
effects on local communities. There is widespread
community opposition to permanent trade out
of a district – some farmers feel ostracised by
the local community for selling their permanent
water entitlements. In contrast, there is strong
support for the principles and practice of
temporary water trade.
Economic Implications
Trade in permanent water entitlements has
enabled the development of new industries,
promoting economic activity, increased
employment and investment. Temporary trade
in water allocations assisted risk and financial
management for dairy farmers in northern
Victoria who, because of drought, faced ten
Project Details
Project Title: “Impacts of Water
Trade in the Murray Valley”
Funding Organisation: Murray
Darling Basin Commission, The
National Water Commission,
RIRDC
Budget: $30,000
Completion Date: February 2007
Contact
Dr Elaine Barclay
02 6773 5141
[email protected]
Institute for Rural Futures
UNE, Armidale, NSW, 2351
positive futures through sustainability science
www.ruralfutures.une.edu.au