Water markets in Australia: a short history
The National Water Commission produced Water markets in Australia: a short history to trace the development of water markets in Australia.
Making the best use of Australia’s limited fresh water resources has been an enduring challenge since European settlement.
In response to this challenge, governments encouraged and financed an extensive expansion in water infrastructure and use in the early and mid 20th century, with a view to promoting economic development and prosperity. Governments played an active role in determining how, where, and by whom, water should be used.
In more recent times, water markets and trading have played a key role in allocating scarce water resources.
The flexibility and autonomy offered by water trading has increased agricultural production, helped farmers and communities to survive severe drought, and provided the mechanism for recovering water for the environment.
Governments still have a vital role to play in improving the efficient functioning of the market, and managing the unintended consequences of trade.
In publishing this history, the Commission hopes to promote a better understanding of the benefits of water reforms, together with the sustained commitment and leadership required to achieve long-term gains.
Australia’s water markets story demonstrates how perseverance, collaboration and pragmatism can lead to good policy outcomes and tangible benefits.