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Water Trading in the Western Mount Lofty Ranges

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Water Trading in the Western Mount Lofty Ranges Water trading in the Western Mount Lofty Ranges June 2020 Vineyard in Ashton Water in the Western Mount Torrens (Karrawirra Parri), Little Para and the Gawler rivers as they cross the Adelaide Plains Lofty Ranges Prescribed Water from the hills to Gulf St Vincent. Resources Area (WMLR PWRA) is a vital resource. It enables our Explaining licensing and allocations livelihoods, lifestyles and An area becomes ‘prescribed’ to protect water landscapes to thrive. resources from unsustainable use and to balance the economic, social and environmental needs for water. This introduces a legal process to Water licenses and water allocation plans manage the taking and using of water through support an economically important and water licensing and allocation. diverse agricultural industry, by ensuring water resources remain viable into the future. This A water allocation plan outlines how the prescribed area extends from Gawler in the prescribed water resources will be managed north to Cape Jervis in the south, and covers sustainably. This plan is developed with the local parts of the Adelaide Hills and the Fleurieu community and industry to ensure all needs, Peninsula. It also includes the Onkaparinga, including the needs of the environment, are met. A water licence is a personal asset that is Water trade does not include physically separate from the land and can be sold or moving water from one property to another, traded to others. e.g. through a pipe or water cart/tanker. In the WMLR PWRA, all water taken from When traded, water licences or allocations groundwater (wells/bores), surface water remain related to the same water resource (dams) and watercourses, which are used type – e.g. groundwater, surface water or for irrigation, industrial, commercial or watercourse water. recreational purposes require a licence and allocation. The benefits of water trade A licence is not required to use water for The whole community benefits from water domestic purposes (households and trade as water is used where it is most valued gardens up to 0.4 ha), watering of stock and needed. Putting a dollar value on water (not subject to intensive farming), fire- also encourages efficiency and increased fighting and road-making. This applies to productivity. all water sources except for large dams Water trade could allow new businesses to having a capacity of 5 megalitres or greater, establish or existing ones to expand. which require a license for stock and domestic purposes. It may allow flexibility in water use, including being able to increase the allocation during Granting new allocations is currently restricted, prolonged periods of drought. although an allocation can be acquired by trading (transferring) from someone with an Purchasing an extra allocation may help a existing licence and allocation. licence holder avoid exceeding their original allocation and a penalty for overuse. What is water trading? Where can water be traded? Water trading is the transfer of a water licence and/or allocation, usually in return for Trading water licences and allocations to a monetary payment. A water broker can assist different location is subject to an assessment with water trading (buying and selling water to ensure sustainable water use and to minimise allocations) and information on current market detrimental impacts on water resources or other prices. users, including the environment. This assessment is based on the principles in Trade can be permanent or temporary (a lease) Sections 6 and 7 of the WMLR Water Allocation subject to the water allocation plan’s trading Plan (WMLR WAP) and can be quite complex as (transfer) principles, and a licensee may trade it has to consider potential regional and local all or part of their allocation. scale impacts of the proposed trade. The Water trading can be a change in the holder of WMLR WAP can be found at the licence, e.g. through the sale of a property. https://www.naturalresources.sa.gov.au/ad This is usually a simple administrative transfer elaidemtloftyranges/water/water- and requires no technical assessment against planning/water-allocation- the plan. planning/western-mount-lofty-ranges A trade can also be a change in location from Water can only be traded between the same where water is taken, along with a change in resource types (e.g. surface water to surface the holder of the allocation. water) and not between different resource types (e.g. surface water to groundwater). The trading of groundwater can occur Well buffer zones: Water trading must not throughout the entire WMLR PWRA. However, cause well buffer zones to overlap (or further the trading of surface water or watercourse overlap). These buffer zones, defined in the water is restricted to within catchments (i.e. WMLR WAP, are deemed to be a circular area South Para River, Little Para River, River of potential impact resulting from Torrens, Onkaparinga River, Willunga Basin, groundwater pumping and drawdown. This Myponga River, Fleurieu Coastal and the area of impact depends on the maximum Hindmarsh/Inman Rivers Catchments). On the volume of groundwater allocation, if the trade plains, trading allocations from a watercourse was approved. may only occur on the same watercourse. They should also not overlap (or further overlap) To better manage water resource variability established buffers which protect groundwater- across the region, the WMLR PWRA is divided dependent ecosystems (e.g. wetlands). into 45 groundwater management zones and High intensity underground water use: 333 surface water management zones. Water trading should not move groundwater Some of the key assessment principles for allocations into existing (or create new) zones trading groundwater and surface water are of high intensity underground water use. detailed below. These are areas where concentrations of Groundwater allocations allocations significantly exceeds recharge to the groundwater system. Extraction limits: Trading must not result in the extraction limit for the receiving Surface and watercourse water management zone to be exceeded (or further The assessment of water trading for surface exceeded). The map on the next page, and watercourse water allocations is complex, ‘Groundwater Management Zone Allocation as it needs to consider regional catchment Status’ shows the management zones divided scale impacts, management zone limits and into three categories: local runoff limits. Red - at limit: the zone is fully allocated Similar to groundwater, the trading of surface and groundwater cannot be traded into water should not result in the extraction limit this zone. However, allocations may be being exceeded (or further exceeded) for traded within the zone. either the receiving surface water management zone or any downstream zones. There is also Orange - near limit: total groundwater a local runoff test to ensure there is sufficient allocations are within 100 ML of the runoff to a site. An additional local runoff extraction limit, so there may be limited test applies to water sources located in a opportunities to trade into this zone. catchment of a Fleurieu Wetland, where the total surface water use (existing and Green - under limit: total groundwater proposed) should not exceed 25% of the allocations are less than the extraction runoff to the wetland. limit, with available groundwater greater than 100 ML. This allows for a potential Furthermore, water trading must not result in any trade into this zone. increase in water use upstream of a reservoir. This map will be updated periodically and is available online at https://www.environment.sa.gov.au/licence s-and-permits/water-licence-and-permit- forms/adelaide-and-mount-lofty-ranges- water-licences-and-permits How much does water trading cost? Can new water sources be established The price of a water licence or water allocation to access traded water allocations? to be traded is negotiated between the buyer Construction of new dams (or and the seller, or their representatives. A water enlargements) are temporarily restricted broker can assist and provide information on within the WMLR PWRA and as a general current market prices. rule, can only be considered where there is Information on recent water trading sales in an equivalent reduction in dam capacity in South Australia is available on WaterConnect at the same catchment. https://www.waterconnect.sa.gov.au/Syste New bores, dams and watercourse sources are ms/WTR/Pages/Default.aspx subject to assessment against the relevant Fees apply to any applications to trade principles of the WMLR WAP. The construction water. For more information, please contact of bores (or replacement bores) and dams (or the Department for Environment and Water, modification) requires a Water Affecting Adelaide Water Licensing office on Activity permit. The installation of (08) 8463 6876 or visit infrastructure to access water from a https://www.environment.sa.gov.au/licence watercourse may also require a permit. s-and-permits/water-licence-and-permit- Proposed dams with a capacity exceeding 5 forms/adelaide-and-mount-lofty-ranges- megalitres or a wall height greater than 3 water-licences-and-permits metres will require development approval with local council, rather than a permit. Additional costs may apply for water brokers, conveyancers and other services. What is the process to trade water? The buyer and seller negotiate an in-principle agreement regarding the quantity and price of water to be traded. If you are having trouble finding a buyer or seller then a water broker could assist, or you could talk to other water users, or place a notice in a local newspaper, noticeboard or on social media. The Department for Environment and Water is the authority for administering water licences A gully dam at Torrens Vale and trades. Application forms and fees should For information about well construction be submitted to the DEW Adelaide Water permits go to Licensing office, which will be assessed against https://www.environment.sa.gov.au/topics/w the relevant principles in the WMLR WAP.
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