Australians can buy or sell their water rights temporarily or permanently. It may sound bizarre, but it is possible. Water market intermediaries, known as water brokers, oversee the entire process. Mature Australian water markets mature, leading to the emergence of water brokers.
These individuals are like real estate agents matching buyers to sellers and ensuring you get the right documentation. The Australian water market remains unregulated. As such, anyone can become a water broker. But what do these individuals do?
What Is A Water Broker?
These are intermediaries between buyers and sellers in the water market. They help initiate the water trade by matching a buyer to the right seller and vice versa. Also, they help organise the necessary documents or paperwork for the exchange process.
Types Of Water Brokers
Like in real estate, there are different water brokers in Mildura. When the Australian water market launched, several real estate agents saw an opportunity and decided to go for it.
Here are the different types of brokers:
- Large businesses with substantial water assets
- Full-time water brokers
- Neighbours – These are usually less formal arrangements and can happen over the fence.
- Real estate agents with exposure to the local water markets.
What Water Brokers Do
The water market of Australia isn’t regulated. Anyone can become a water broker. They charge commissions which usually save on costs for search and improve information flow. But in totality, here is what they do:
-
Investigate Trading Options
Australian water trading comes in two main options, permanent and temporary. In permanent trade, the seller sells away their entitlement permanently and can never get it back. Temporary trade is an annual water allocation where the entitlement holder can temporarily trade their allocation based on their business model. A water broker investigates these trade options to ensure their clients get what they want at the best rates.
-
Help Obtain Regulatory Approvals
Once a buyer meets a seller and agrees on terms, the water broker will help get the regulatory approvals. The approvals ensure the environmental and water regulation meets the government and community expectations.
-
Arrange the Necessary Paperwork
Each water entitlement in Australia has its unique key characteristics. As a result, before buying or selling, the water brokers in Mildura will ensure you have the right paperwork. Some characteristics of these water entitlements include the resource type the entitlement belongs to, traceability of the entitlement, the flow regime of the particular resource and more.
Benefits Of Using A Water Broker
Water brokers do more than connect clients to potential buyers or sellers. Working with a full-time water broker will ensure you the following benefits:
- Many of them are Australian Water Brokers Association members. As such, they always know and understand the market rates and trends.
- They constantly engage with water markets and thus understand the dynamics and drivers.
- Most of them have systems with data support that can help you make an informed decision.
- They can identify trading opportunities across different yet connected valleys or state borders.
- Most do not hold water and sell. It is vital to always ask for this when looking for a water broker.
The water broking industry in Australia is unregulated and expanding. There are low barriers governing entry requirements. Anyone can offer these services to purchasers or vendors without knowledge or experience. Researching and working with the best water trading specialists is always best.