Essay on The Issue Of Water Supply Demand Imbalance

822 Words Oct 23rd, 2016 4 Pages
The issue of water supply-demand imbalance has been effecting many parts of the world’s arid and semi-arid regions. To address these problems there needs to be a comprehensive institutional arrangements and allocation mechanisms among competing users. Water markets are one such institution which is intended to enhance the economic efficiency with which water resources are used and to mitigate and mange water scarcity. We will now review one of the water market which is Australia ‘s Murray-Darling Basin which is a semi-arid region. The Murray-Darling Basin covers the geographical region of Victoria, New South Wales, South Australia and the parts of Queensland and Australia capital territory. This water markets also spreads to Western Australia and Tasmania mainly through water trading.
Water Rights
The rights in Australia are more of statutory rights which can be revoked at any given time without compensation. In Australia, water resource plans are obliged to ―” …establish the intended balance between environmental and consumptive use outcomes, as well as setting out terms and conditions for water access” (National Water Commission 2009a, p. 14). But the definition of public interest is often vague, which leads to uncertainty in allocations.
A robust and clear institutional relationships, both at a given level of governance and between different levels of governance is necessary. In Australia, cross-government agreements have formed the basis of water reform since the…

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