Water Trading Zones and Rules — Australia
Every water trading zone in the Murray-Darling Basin operates under its own register, carryover rules, and inter-valley or interstate transfer limits. This page is a reference for irrigators, accountants, and advisers who need to understand how the rules work before trading.
MDB trading zones — quick reference
| Zone | State | Register | Carryover | IVT / interstate | Key industries |
|---|---|---|---|---|---|
| Zone 1A | VIC | Victorian Water Register | 100% up to volume cap | Goulburn-to-Murray cap applies | Dairy, stone fruit, pears, mixed cropping |
| Zone 2 | VIC | Victorian Water Register | 100% up to volume cap | 1,500 ML IVT cap; no trade out after 31 March | Dairy, mixed farming |
| Zone 3 | VIC | Victorian Water Register | 100% up to volume cap | Part of Goulburn system; trades freely with 1A/1B | Dairy, mixed cropping |
| Zone 4A/4C | VIC | Victorian Water Register | 100% up to volume cap | Campaspe-to-Murray cap applies | Dairy, mixed cropping |
| Zone 5A | VIC | Victorian Water Register | 100% up to volume cap | Loddon-to-Murray cap applies; 8,000 ML entitlement cap with 1B | Dairy, mixed cropping |
| Zone 6 | VIC | Victorian Water Register | 100% up to volume cap | Above Barmah Choke — trade down to Zone 7 restricted | Dairy, horticulture, broadacre |
| Zone 7 | VIC | Victorian Water Register | 100% up to volume cap | Below Barmah Choke — receives Goulburn IVT at Echuca | Almonds, wine grapes, citrus, dairy |
| Zone 10 | NSW | WaterNSW | General security up to 50%; high security generally none | Above Barmah Choke — trade to below-Choke zones restricted | Rice, winter cropping, dairy |
| Zone 11 | NSW | WaterNSW | General security up to 50%; high security generally none | Below Barmah Choke — interstate trade under MDBA rules | Horticulture, wine grapes, dairy |
| Zone 13 | NSW | WaterNSW | Partial — varies by licence class | Trade out of valley capped — 100 GL IVT account | Rice, wine grapes, horticulture, cotton |
| Zone 12 | SA | DEW SA WaterConnect | Defined allowance under SA allocation plan | Below Barmah Choke — interstate trade under MDBA rules | Wine grapes, citrus, almonds |
Source: MDBA Water Trading Rules, Victorian Water Register, WaterNSW, DEW SA. Carryover rules may change annually — confirm current rules with the relevant register before trading.
Carryover rules by state
Victoria
Victoria's carryover system is the most generous in the MDB. Entitlement holders can carry over 100% of unused seasonal allocation to the next water year, up to an individual volume cap tied to their entitlement class. Any allocation above the cap at 30 June is forfeited — if you are approaching your cap, our carryover parking service can help. This rule applies across all Victorian zones including Zone 1A, 2, 3, 4, 6, and 7.
Victorian Water Register →New South Wales
NSW carryover is more restrictive and varies by licence class and valley. General security holders typically receive a partial carryover allowance announced by WaterNSW in late June based on storage conditions. High security entitlements generally have more reliable carryover. NSW carryover rules can change year-to-year — do not assume last year's rules apply. Check with WaterNSW or Integra before the end of the water year.
WaterNSW →South Australia
SA carryover is established in the SA Murray Water Allocation Plan. Entitlement holders have a defined carryover allowance based on their licence class. SA's downstream position means storage and flow availability strongly influence what DEW SA announces as carryover for each season. Surplus allocation above the cap is forfeited at 30 June. See DEW SA for your specific licence conditions.
DEW SA WaterConnect →Inter-valley and interstate transfer rules
Moving water between valleys or across state lines introduces additional rules and constraints. Here is a practical overview:
Victorian inter-valley transfers (IVTs)
Victorian IVTs allow allocation to move between the Goulburn, Campaspe, or Loddon systems and the Victorian Murray system. Each valley-to-Murray pair has its own trade limit set under Victorian trading rules — administered by DEECA and operated by the Northern Victoria Resource Manager — within the broader framework of the MDBA Water Trading Rules. The Goulburn-to-Murray limit releases capacity in announced tranches — around 1 July, 15 October and 15 December — and trade opportunity opens and closes as the IVT account balance moves against trigger levels. When the limit is closed, Goulburn water cannot enter the Murray regardless of how much a buyer is willing to pay. Because the Goulburn joins the Murray at Echuca, downstream of the Barmah Choke, Goulburn-to-Murray transfers land in Zone 7 and never pass through the Choke. For a plain-English breakdown of how this affects prices, see our explainer on what the IVT limit is.
Cross-state (interstate) trades
Interstate trades are governed by the MDBA and bilateral state agreements under the Murray-Darling Basin Agreement. Practically, interstate trades involve: (1) lodging a departure notice on the source state register, (2) lodging a receipt application on the destination register, and (3) both parties having accounts in both states. Processing time is typically 3–7 business days for a straightforward interstate trade.
The Barmah Choke — physical constraint
The Barmah Choke is the natural restriction in the Murray between roughly Yarrawonga and Barmah, Victoria. Maximum daily flow through the Choke is about 7,000 megalitres per day, and that capacity is declining. Zone 6 (Vic Murray) sits above the Choke and Zone 7 (Vic Murray) sits below it. Because additional trade downstream would add delivery through the Choke, allocation trade from above the Choke to below has been restricted since 2014 and is effectively closed apart from limited openings — trade upstream (Zone 7 to Zone 6) remains open. This restriction is why below-Choke zones carry a structural price premium. It is separate from the Goulburn-to-Murray IVT limit, which governs Goulburn water entering the Murray below the Choke at Echuca. Integra monitors Choke conditions daily and can advise on current downstream transfer feasibility.
Rules and trading zones — frequently asked questions
How many water trading zones are there in the Murray-Darling Basin?
The Murray-Darling Basin has multiple trading zones across Victoria, NSW, South Australia, and Queensland. Victoria alone has zones covering the Greater Goulburn (1A), Broken (2), Lower Goulburn (3), Campaspe (4A/4C), Loddon (5A), Vic Murray above Choke (6), and Vic Murray below Choke (7). NSW has several river valley zones including the Murrumbidgee, Macquarie, Border Rivers, and Murray. The MDBA publishes the definitive zone map. This page focuses on the major actively-traded zones where Integra operates.
What is an inter-valley transfer (IVT) limit?
An inter-valley transfer moves water allocation from one river valley to another within the same state. In Victoria, IVT limits are set under Victorian trading rules administered by DEECA and operated by the Northern Victoria Resource Manager, to protect the ecological function and supply security of the source valley. Trade opportunity opens and closes through the year as the IVT account balance moves — the Goulburn-to-Murray limit, for example, releases capacity in announced tranches (around 1 July, 15 October and 15 December). Key limits include Goulburn-to-Murray (Zone 1A to Zone 7 VIC), Campaspe-to-Murray, and Loddon-to-Murray transfers.
How do cross-state (interstate) trades work?
Interstate trades move water between state registers — for example, VIC to SA or NSW to VIC. These trades require approval under the MDBA Water Trading Rules and must comply with interstate trade caps. Each state register records the departure and receipt of the allocation. Interstate trades also require both parties to have accounts in the relevant state registers. The Barmah Choke is a physical constraint that limits how much water can move from above-Choke zones to the below-Choke zones — Zone 7 (Vic Murray), Zone 11 (NSW Murray) and Zone 12 (SA Murray) — regardless of the regulatory cap.
What is the Barmah Choke and how does it affect trading?
The Barmah Choke is the narrow reach of the Murray River between roughly Yarrawonga and Barmah, where the channel constricts and limits flow to about 7,000 megalitres per day — a capacity that is declining. Zone 6 (Vic Murray) sits above the Choke and Zone 7 (Vic Murray) sits below it. Because additional downstream trade would add delivery through the Choke, allocation trade from Zone 6 to Zone 7 has been restricted since 2014 and is effectively closed apart from limited openings; trade upstream from Zone 7 to Zone 6 remains open. This is a key reason below-Choke water carries a persistent price premium over above-Choke zones.
Which water register do I use for my zone?
Victorian zones (1A, 2, 3, 4, 6, 7) use the Victorian Water Register at waterregister.vic.gov.au. Zone 6 covers the Vic Murray above the Barmah Choke and Zone 7 covers below the Choke. NSW zones (Murray zones 10 and 11, Murrumbidgee zone 13, Macquarie, Border Rivers) use WaterNSW at waternsw.com.au. SA uses the DEW SA WaterConnect portal at waterconnect.sa.gov.au. Queensland irrigation areas have their own register managed by DRDMW. All interstate trades require accounts on both the source and destination state's register.
Can I trade water between different entitlement classes within the same zone?
In general, allocation trades within the same zone and the same entitlement class are straightforward. Trading between entitlement classes (e.g., selling high-reliability allocation to a low-reliability buyer) may be restricted or subject to specific conditions on the state register. Victoria, NSW, and SA each have their own rules on this. Integra will confirm whether a cross-class trade is possible for your specific entitlement before proceeding.
Ready to trade?
Integra trades across Zone 1A, Zone 6, Zone 7, and the full MDB. Contact us for a current market price or to discuss a cross-zone strategy.
Zone guides and pricing
- Zone 1A Greater Goulburn — full trade guide and current prices
- Zone 6 Vic Murray (Above Choke) — full trade guide and current prices
- Zone 7 Vic Murray (Below Choke) — full trade guide and current prices
- Current water prices — live allocation pricing for Zones 1A, 6 and 7
- How water trading works — beginner guide
- Water market insights — analysis from Integra's brokers
Liz Johnston
Senior Water Broker
Indicative only. Not financial advice. Water trade involves risk of principal loss. Rules and caps described are subject to annual revision by the MDBA and state authorities. Confirm current rules with the relevant water register before trading.