Review of urban water markets and entitlements
Under the National Water Initiative, state and territory governments and the Australian Government have committed to a review of institutional and regulatory models for achieving integrated urban water cycle management. The aim is to identify and develop innovative ways of managing and achieving more efficient water use in our cities.
As a first step towards this goal, an issues paper was developed to identify relevant issues and priorities. Initial priorities are:
- review and clarification of entitlements to new sources of water
- facilitation of urban water trading (both within the urban sector and between rural and urban areas)
- co-ordination of water resources and urban planning.
The Commission funded a project to work on the first two priorities: Reviewing institutional and regulatory arrangements and preparing best practice guidelines for achieving integrated urban water cycle planning and management.
This project had two sub-projects:
Review of Institutional and Regulatory Models in Urban Water: Development of Urban Water Markets in Australia
This project considered the potential for the establishment of urban water markets, including existing institutional and regulatory arrangements that may impede or facilitate opportunities to trade in water resources or develop new markets in urban water resources. The review provided governments with policy principles and practical conclusions to guide development of urban water markets.
Urban Water Entitlement Frameworks in Australia: Review and Development of Policy Recommendations for Urban Water Sources
This project took a closer look at entitlements for existing and new/alternative water sources and identified whether existing arrangements are facilitating optimal use of water from all urban water cycle sources. Where needed, it identified and recommended possible reform options and principles.