Water Trading within NSW Irrigation Industry: An Empirical Evaluation of Scale, Reasons and Attitudes

The paper discusses the level of water trading within the NSW Irrigation Industry along with water prices, reasons, attitudes and knowledge of both permanent and temporary water trading. It is based on the results of a survey of 1,115 irrigators representing over 10% of the total irrigators' population within NSW Water Sharing Plans that commenced during 2004 and various secondary data sources covering water trading. Temporary water trading in Murray and Lower Murray Darling and Lachlan catchments has expanded since the commencement of the Water Sharing Plans in NSW. Nearly 7% and 40% of the irrigators surveyed participated in the permanent and temporary water markets respectively. Fifty six percent of the irrigators believed that temporary trading was good for their area, whereas only 28% had similar views regarding permanent trading.