Tighter Rules, Higher Stakes in Australia’s Water Markets

New ACCC rules tighten standards for water intermediaries, aiming to boost transparency and trust in Australia’s water trading system

29 Jan 2026

Australia’s water markets are entering a more disciplined phase. Rather than sweeping prosecutions or sudden shocks, regulators are relying on tighter rules and steadier oversight to reshape how water is traded, especially in the Murray–Darling Basin.

The shift centres on the Australian Competition and Consumer Commission (ACCC) and its powers under the Water Act 2007. In 2025 the regulator began enforcing key parts of the Water Markets Intermediaries Code. These include requirements on trust accounting, clearer disclosures and conduct standards for brokers and exchanges. Rolled out in stages, with major milestones in July and October, the code represents the most significant overhaul of intermediary regulation in years.

The logic is straightforward. Water trading has long been dogged by complaints about opaque fees, uneven practices and variable standards. As water increasingly attracts financial players alongside farmers, such weaknesses risk eroding confidence. Clearer rules for intermediaries are meant to reduce the scope for misconduct and make the market easier to understand.

For firms in the sector, the changes are already being felt. Compliance now demands better governance, stronger internal controls and more thorough documentation. Although the reforms stop short of forcing mergers or changes in business models, higher compliance costs may still shape the market’s structure over time. Smaller operators, with fewer resources to absorb new obligations, could find the burden heavier than larger rivals.

State water authorities and other market participants are also adapting. Better reporting and record-keeping are becoming routine as scrutiny increases. Technology has taken on greater importance, with data systems helping firms meet requirements consistently and at lower cost.

All this is happening against an unsettled backdrop. Climate variability, competing demands and policy uncertainty continue to strain water availability and influence prices. In such conditions, trust in market mechanisms matters more than ever. The ACCC’s approach is designed to support that trust not by remaking the system, but by clarifying how it should function.

The effects will emerge slowly. Predictions of rapid consolidation or dramatic upheaval look premature. Still, the direction is clear. Australia’s water markets are becoming more rules-based and more professional. Those who invest early in compliance are likely to be better placed as the new regime beds in.