The Water Act 2007 governs how the Commonwealth Environmental Water Holder (CEWH) trades water. The Water Act outlines when and how trading can occur, and how we can use the proceeds of a water sale.
Under the Water Act, the CEWH must manage water for the environment to protect and restore environmental assets in the Murray–Darling Basin.
The laws and regulations that apply to government agencies in relation to managing finances, staff and information must also be followed.
In addition to the Water Act, the following laws and regulations govern how we operate:
- Water Amendment (Restoring Our Rivers) Act 2023
- Basin Plan 2012
- relevant water management legislation in the states or territory in which the Commonwealth holds environmental water (currently the Murray-Darling Basin jurisdictions)
- Public Service Act 1999
- Public Governance, Performance and Accountability Act 2013
- Freedom of Information Act 1982
- National Anti-Corruption Commission Act 2022.
The Commonwealth Environmental Water Trading Framework
The CEWH has a Trading Framework which aligns with the requirements of the Water Act and the Basin Plan’s water trading rules. It ensures our trading activities:
- support enhanced environmental outcomes
- consider social and economic outcomes
- consider impacts on the market, including any third-party impacts
- follow legislative requirements
- are responsible, fair, transparent and accountable
- uphold our commitment to integrity and high ethical standards.
Operating rules for fair trading
Our Trading Framework contains a set of operating rules that guide how we carry out trading. These rules cover several key principles. For example, we will:
- not trade if a tender was not announced to the general public
- conduct trades through a competitive process
- make trade decisions based on market assessments
- provide regular guidance on trading intentions
- announce trades in advance
- apply price limits to every trade
- ensure consistent, fair and transparent trade assessments
- undertake public reporting following a trade.
For more information, view the Commonwealth Environmental Water Trading Framework.
Ethical guidelines and protocols
Our Trading Framework includes a suite of probity protocols which ensure we make fair water trading decisions and meet our corporate values.
The protocols outline that we will:
- restrict and manage disclosures of sensitive water markets information
- avoid conflicts of interest and exposure to inside information
- disclose and manage conflicts of interest and exposure to inside information
- maintain proper record- keeping and information management
- stay informed about water announcements and trade decisions
- ensure our trading activities align with the APS Code of Conduct.
Equal regulations for all water holders
We're just one of many water holders in the Basin. Like all water holders, we're subject to the same rules and pay the same fees.
For more information, download our trade fact sheet.