Water entitlements and trading in the Fitzroy, Boyne River and Calliope River water plan areas

In Queensland, we can grant a range of water entitlements and authorisations which are important to consider in the review. These entitlements include water licences and water allocations, and we aim to update and improve any entitlement products where possible.

Water licences

A water licence is an authority to take water or interfere with the flow of water (for example a weir interferes with a watercourse). It is usually attached to a parcel of land and subject to expiry.

Most water licences that authorise water to be taken detail how much water is allowed to be taken, such as an annual volume limit. However, some water licences in Central Queensland (CQ) have no volume limits, particularly in the Fitzroy catchment.

We are reviewing how current licences are working for water users in CQ.

Water allocations

A water allocation authorises the holder to take a certain volume of water from a particular water source, such as a watercourse or aquifer. Allocations have a separate title (like a land title) and can be bought and sold on the water trading market. They can also be used as a mortgageable asset.

Water allocations provide long-term security because:

  • they do not have an expiry date
  • they specify a nominal volume of water that can be taken which is considered as the allocation’s long-term water share.

Water allocations support additional businesses through water trading without compromising other water needs in the catchment.

Water trading

Water trading allows:

  • current water users to buy and sell water to suit their business
  • new businesses to buy water.

In Queensland, water can be traded either permanently or temporarily on a seasonal basis (called a ‘seasonal water assignment’). Water trading can include trading of supplemented water in a water supply scheme or unsupplemented water not managed in a scheme.

Water trading in CQ can be done in the Fitzroy Basin and to a lesser degree in the Boyne River Basin (only seasonal water trading is allowed here, no permanent trading). Uptake of water trading is low in the Boyne River Basin.

We would like to understand if these water markets could be improved by changing or introducing trading rules.