The Federal Government is giving the competition regulator a new role in the water market. 

This week, the Government released the Water market reform: final roadmap report and announced its intention to implement all of the recommendations.

The recommendations the Government has accepted involve the Australian Competition & Consumer Commission (ACCC) enforcing new Basin-wide laws that address harmful market conduct, including through bans on market manipulation, stronger insider trading rules, and a mandatory code of conduct for water market intermediaries.

The roadmap presents ways to improve the functioning and governance of water markets, apply safeguards similar to those in place to regulate the conduct of participants in other comparable trading markets, and improve confidence in Basin water markets. 

It was developed in consultation with Basin states and key stakeholders, including targeted consultation with the ACCC. Much of the roadmap is built on the findings and recommendations of the ACCC's 2021 report on Murray-Darling Basin water markets.

It is also based on concerns from irrigators and other market participants about trading behaviours that can undermine the integrity of markets, such as through market manipulation and insider trading.

In response to the roadmap report, the Government has committed to legislating new water market integrity and conduct reforms, including an enforceable mandatory code of conduct for water market intermediaries.

“These are important reforms that can help to restore trust and confidence in Murray-Darling Basin water markets,” ACCC Deputy Chair Mick Keogh said.

“The benefits of well-functioning Murray-Darling Basin water markets will flow through the entire Australian economy.”