Delivery Shares & trading
Delivery Share trading occurs in most instances where a landowner is looking to reduce their ongoing annual Delivery Share costs and another landowner in the same area, needs to increase their delivery shares due to an increase in water usage, overuse or other developments requiring higher water use in the future.
Traditionally these trades have operated on a reverse market. Where the Seller pays the buyer to take the Delivery Shares off their hands. While this may seem counterintuitive, the alternative is to pay the Water Authority the equivalent of 10 times the annual infrastructure fee in order to terminate the shares.
Across the Goulburn and Murray Valley regions, Delivery Shares trades for somewhere between 3 & 6 years of the annual liability which is cheaper than terminating at the authority. The Boort region is the exception to this, with limited Delivery Shares available and the impact that rationing can have on the region, the shares had been transferring for Nil value or the Buyer is now looking to pay to entice the sellers to the market.
Our Delivery Share offers are listed on our Permanent Traderoom.
If you would like to see what is available or to list an offer please click the button below.
What are Delivery Shares?
Delivery share means the entitlement to have water delivered to land in an irrigation area. It gives access to a share of the available capacity in the channels or pipes that deliver water to the property. Delivery share is defined by a rate of megalitres per day (ML/day). Delivery shares are used to share a fair supply during peak irrigation demand through a process called “rationing”. Rationing is required during periods when total customer orders exceed the available channel capacity of the delivery system. Delivery System means an irrigation area within the Goulburn Murray Irrigation District or Nyah Irrigation District or the Tresco Irrigation District. Delivery shares are tied to the land and are owned by proprietor of the land title. Generally, delivery share remains with the land. Vendors and purchasers should discuss delivery share requirements as part of the property sale. Transfer of delivery share means transferring delivery share rate (ML/day) from one property to another property within the same delivery system.
General rules..
The transfer of delivery share between properties within a delivery system is generally permitted. Approval of an application to transfer delivery share is subject to rules, including: If a mortgage exists on any parcel of land associated with the vendor’s delivery share, mortgagee consent must be provided. An application to permanently transfer delivery share is subject to channel capacity being available. The purchaser’s property not being subject to a reconfiguration plan.
Limitations on transfer
Transfer may be restricted based on reasonable physical or non-physical factors as detailed in the Murray Darling Basin Authority’s Guidelines for Water Trading Rules, Rules for irrigation infrastructure operators. Transfer may be restricted in accordance with the Minister’s Directions on Delivery Entitlements. Transfer of delivery share is not permitted between delivery systems.