While it is not possible to know the future price of water rights, it is possible to develop a more informed understanding of the likely direction of price trends based on ongoing monitoring of information relevant to you and your water market.
An understanding of water market behaviour and regular assessment of the key drivers of water markets and prices can help shape decisions around:
- The types of water right that will suit your business needs i.e. water allocation only, water entitlement only (high reliability or low reliability; with or without carryover); outright entitlement purchase or short-term entitlement lease; or a mix of each.
- The timing of your water purchases – at annual and seasonal time scales.
- The location of the water product (SA versus interstate) in relation to known and potential water restrictions.
- Using the forward water market to lock in a volume of water allocation at a set price for future delivery on an agreed date.
- Rebalancing your water portfolio as water resource conditions or your business needs change.
- Avoiding common trade restrictions by monitoring known trade limits between states/trading zones, considering contingency options in advance and acting sooner rather than later.
- Minimising your exposure to the water market by maximising your water-use efficiencies.
The department has developed a document containing useful links to websites and information relating to water markets and trade.