Mallowa Creek in the Gwydir Valley during an environmental water delivery in January 2022. Photo: Jane Humphries/CEWO
The Commonwealth has put up to 15 gigalitres of Gwydir water allocations on the market, with the volume potentially enough to irrigate almost 1,900 hectares of cotton.
The competitive tender opened at 10am on Tuesday and will close at 5pm on Thursday, October 1, giving eligible water account holders the opportunity to bid for some or all of the 15,000 megalitres being offered.
The sale is for annual water allocations rather than permanent water entitlements, meaning the Commonwealth is selling water currently available in its account while retaining ownership of the underlying environmental water rights.
Gwydir Valley Irrigators Association executive officer Lou Gall estimates 15GL could support about 1,875 hectares of irrigated cotton, based on water use of around eight megalitres per hectare.
At a yield of about 12 bales per hectare and a value of $625 per bale, that would equate to about 22,500 bales of cotton with a farmgate value of just over $14 million.
Using an estimated three-times multiplier for the wider economic impact of cotton production, the potential value flowing through the broader economy could be about $42 million.
The figures are an illustration of the productive value of the water rather than a forecast of the tender’s outcome. The water purchased through the tender is not required to be used for cotton and the Commonwealth is offering up to 15GL, meaning the full amount may not necessarily be sold.
The Commonwealth Environmental Water Holder, Dr Simon Banks, said the decision to sell followed an assessment of environmental water requirements in the Gwydir for 2026–27.
Dr Banks said the Commonwealth had enough environmental water available to achieve its planned outcomes even under a very dry scenario, while also retaining water to carry over into 2027–28.
At August 31, the Commonwealth held 114,484ML of registered environmental water entitlements in the Gwydir and had an estimated water account balance of 109,815ML.
The Commonwealth can sell annual allocations when it determines trading the water will deliver better environmental outcomes and value for money.
Money raised from the Gwydir sale must be used for environmental purposes, either by funding activities that improve environmental water delivery and outcomes or by purchasing water to meet environmental needs elsewhere.
Dr Banks said possible projects included fishways, wetland rehabilitation and infrastructure improvements.
The Commonwealth Environmental Water Holder has sold water allocations on five occasions since 2014, with $11.5 million committed to environmental activities from previous sales.
Eligible Gwydir water account holders can submit bids electronically until 5pm Thursday.
