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Abstract
In November last year, a pilot interstate water trading project was approved by the Murray-Darling
Basin Ministerial Council. This project allows private diverters along a region of the River Murray to
permanently trade high security water from one State to another – until November 1997 this would have
been impossible. Under this project, solutions will be developed to complex interstate water trading
issues so that water will be able to move to higher value uses; be applied to soils that are more
appropriate to irrigation; and be used more efficiently – irrespective of State borders. This will in turn
help the irrigation industry in Australia become more economically and environmentally sustainable.