Water markets in the Murray-Darling Basin

The paper reviews the history of water markets and recent water reforms in the Murray-Darling Basin (MDB), Australia. A detailed examination of water markets in the MDB is given with a focus on: water charge and trading rules, trade restrictions, gains from trade, water market information, inter-temporal market price responses, and the environmental benefits of trade. Twelve lessons from the development of water markets in the MDB are provided to assist decision-makers interested in establishing or improving water markets in Australia, and beyond.