Water trading expanded across the Territory

Recent changes to the Water Act 1992 allow for water trading anywhere in the Northern Territory, creating new avenues for investment and development.

Previously, trades could only occur within water allocation plan areas. Under the updated legislation, any water licence holder may apply to trade part of their entitlement with any other licence holder accessing the same water resource.

This reform supports a more flexible and efficient water market in the Territory, keeping water within its resource boundaries while enabling it to move to where it can be put to best use. This is particularly important in regions such as Darwin Rural, where in some areas licensing limits have been reached, but not all licensed water is being used. Territory-wide, more than half of licensed water is not used each year due to seasonal conditions, market variability or because licence holders do not require their full entitlement.

By allowing broader trading within the same groundwater aquifer or surface water system, unused water can be transferred to new or expanding businesses that may not otherwise be able to obtain a licence. All trade applications must still be assessed and approved by the Controller of Water Resources, ensuring no adverse impacts on neighbouring properties, other water users, or the environment.

Importantly, trading does not increase the total volume of water that can be taken from a resource. Any increase to one licence must be matched by an equivalent reduction from another licence accessing the same resource, maintaining the integrity of sustainable extraction limits.

Further information about water trading, go to the Northern Territory Government website.