Water licensing and trading

What is a water licence?

A water licence provides a legal authority to take water from a prescribed water resource. Water licences are a personal property right and are not attached to land. Water licences have allocations endorsed on them as well as conditions as to how the water can be taken and used. The allocations and conditions reflect the provisions in the relevant water allocation plan. The entire licence, or parts or all of the allocation on the licence, may be traded according to the rules in the water allocation plan. South Australia is currently in the process of unbundling water rights. View more information on the licence framework.

Do I need a water licence?

Yes. A water licence is required to take water from a prescribed resource for all water uses unless they are exempt.  Exemptions typically include the use of water for stock (not including intensive stock keeping such as feed lots, piggeries, chicken farms etc), water for domestic use, fire fighting and road making. However, water taken for stock and domestic water use in the Western Mount Lofty Ranges (if the water is taken from a dam five megalitres in capacity or greater), the Far North, the Northern Adelaide Plains and the River Murray prescribed water resource areas currently requires a water licence. In areas within SA where the water resource is not yet prescribed it may be neccassary to obtain a permit prior to undertaking a water affecting activity. It is recomended that prior to undertaking any development of water resources that you contact Department for Water for further information.

How do I get permission to take water from a prescribed resource?

To take water from a prescribed resource you will need to obtain a water licence and an allocation. Water licences can be obtained through an application process undertaken by Department for Water. The licence by itself does not authorise the owner to take water from a prescribed resource. To take water from a prescribed resource it will be necassary to have a water allocation endorsed on the licence. The majority of prescribed resources in SA are fully allocated and the only way to obtain a water allocation is through a water transfer.

What is a water transfer?

A transfer is a transaction between a transferor (seller) and a transferee (buyer). It can be either the transfer of a licence (including the allocation) to another person or legal entity, such as a company, or the transfer of all or part of a water allocation from one licence to another licence. A transfer may be short-term (known as a temporary transfer) or for an indefinite period of time (known as a permanent transfer). Water can be transferred between licensees within South Australia (intrastate transfer), or in the case of River Murray Licenses from other States to South Australia and from South Australia to other States in the case of a (interstate transfer).

How is water traded?

Water is traded in South Australia through water brokers and through private sales. The majority of water trade occurs along the River Murray with a water market developing rapidly in other areas of the state. All water trade must be in accordance with the rules contained in the relevant Water Allocation Plan for the region. Information on water traded in South Australia is available from Department for Water.

How do I apply for a transfer?

To apply for a transfer, an appropriate application form must be lodged with the Department of Water, Land and Biodiversity Conservation. The application form has two key parts, one to be completed by the transferor (seller), and the other by the transferee (buyer).Who administers the licensing, allocation and transfer process?

Factors that may affect the transfer of allocations 

The guiding principle behind transfer policies in South Australia is that the transfer should only occur if it can be proved that there is no negative impact on the environment, the resource or other users.

Who administers the licensing, allocation and transfer process?

The licensing section of the Department for Water administers the licensing and allocation process for South Australia.

Key external links for further information

Link icon Department for Water - Water licensing and trading

Link icon National Water Market System - Australian Government Water Trading Website