Market Mechanisms for Recovering Water in the Murray-Darling Basin

The Productivity Commission has made recommendations on how the Australian Government’s buyback of water entitlements in the Murray Darling Basin could be improved, in a report released today. The buyback and a larger irrigation infrastructure program are being used to recover water for the environment, and ease the transition to the much lower water diversion levels expected under a Basin Plan. <p>The report raises some concerns about aspects of the design and sequencing of the strategy, noting problems in having commenced the buyback before the Basin Plan is ratified. However, Commissioner Neil Byron said ‘There is still much that can be done to improve the recovery and management of water for the environment in the Basin’.