Water markets and trade allow for the redistribution of water through buying and selling water rights including water licences, water access entitlements and water allocations. An effective water market will enable water to flow to where it can be used most productively or has the highest value.
Trade of a water right can mean a transfer of ownership, a change of location, or both. Trade can also be undertaken on a temporary or permanent basis, and a person/s may seek to trade all or only part of their entitlement or allocation.
A transfer of ownership occurs when the registered holder of the water right changes from one person (the seller) to another (the buyer).