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Top Things to Know Before Purchasing Your Water Allocation

cost of buying water

by graysonjoseph

Australia is among the world’s highest water consumers, but that doesn’t mean there’s much water to spare. The country experiences low rainfall, and the freshwater sources are also limited. As a result, many people purchase water allocations to facilitate business activities and human consumption.

However, before researching the cost of buying water, there’s much more to learn about water allocation. The process varies across all states depending on the water allocation body.

What Is A Water Allocation?                                                         

A water allocation refers to the amount of water the government distributes to communities and independent organisations within a year. The allocation comes with a water entitlement or license, which proves you have the right to access the water catchment.

How Water Allocations Works in Australia

Typically, the state government determines the amount of water in each catchment and distributes it accordingly. The state can also change your allocation depending on the changes in water availability. For example, the allocation will reduce in the dry season and increase during the wet season.

Nonetheless, you don’t have to worry about running out of water. The government works with independent agencies to calculate water usage and availability before determining your allocation. Additional roles include developing allocation policies, handling trade operations, and developing plans.

Factors That Affect Water Allocation

  • Drought

Drought reduces water levels across the water catchments and river systems, ultimately affecting your allocation. But it’s not you alone; the changes will affect all entitlement holders within the state. Additionally, because the entitlement policies vary between states, holders in Queensland may receive lower allocations than those in South Australia.

  • Type of Crops

The types of crops in a given area can affect water allocation. For example, permanent crops like citrus require a regular water supply, meaning the allocation will need more water. On the other hand, if an area deals with annual crops, farmers can forego planting seasons, depending on the weather condition and water availability.

  • Sustainable Diversion Limits

The diversion limit limits the amount of water you can draw from river systems and other freshwater sources. While the state diverts water, it must also ensure that the rivers and lakes are well-preserved. Therefore, your allocation will vary depending on the limit.

What Is Water Trade?

Water trade refers to the buying and selling of water entitlements or allocations. Therefore, you must understand the water market prices and trading protocol to purchase a water allocation. Usually, there are two types of water trading;

  1. Permanent trading: the permanent buying and selling of entitlements.
  2. Temporary trading: entitlement holders lease their allocations during different seasons.

Therefore, while looking for a water allocation, you can purchase an entitlement or lease an allocation from an entitlement holder. It is an overall process, but water brokers make it easier by guiding you to the right agencies or entitlement holders.

For example, Waterfind, a successful water brokering company, will help find water allocations and handle the water transfer processing. Then, all you have to do is engage in consultations and provide the payment.

Now that you have enough information, it’s time to find the perfect water allocation. Visit a state agency or contact a reliable water broker who will connect you to a reliable water allocation.

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