The Australian Government is considering opportunities to purchase water entitlements from willing sellers in the northern Murray-Darling Basin as part its commitment to recover 450GL of water for the environment.
Today's release of an updated Restoring Our Rivers Trading Strategy includes a voluntary Expression of Interest (EOI) process that will gauge entitlement holders' interest in selling held water in the northern Basin.
Voluntary offers to sell water entitlements through the EOI will help inform when and where the Government may look to purchase water in the northern Basin in the future.
The EOI follows advice from the Murray−Darling Basin Authority (MDBA) highlighting the environmental benefits of extending water recovery efforts into the northern Basin.
The Basin Plan Evaluation released by the MDBA in July 2025 demonstrated the critical role that environmental water played in supporting river flows during the 2017-2019 'Tinderbox Drought'.
Additional water for the environment in the northern Basin can be used to support river connectivity flows during dry times and reduce the frequency or duration of cease-to-flow periods where rivers stop running.
Advice on the social and economic impacts associated with buying northern Basin water will be considered as part of any future Government purchasing decision, as required by the Water Act 2007.
Acknowledging the impact environmental water recovery can have on communities, the Australian Government is providing $300 million to support communities to build capacity and diversify their economies under the Sustainable Communities Program.
The Australian Government is also providing funding to Basin states to deliver local water efficiency projects that can contribute water towards the 450GL target under the Resilient Rivers Water Infrastructure Program.
Minister for the Environment and Water Murray Watt said exploring water recovery opportunities in the northern Basin was critical to the Government's commitment to meet the 450GL target by the end of 2027.
"The previous Coalition Government let communities down, let industry down, and put the long-term health of the Basin at risk by failing to take meaningful action to recover water for the environment."
"We have acted decisively and have recovered almost half of environmental water required to meet the 450GL target under the current Basin Plan.
"So far, water recovery efforts have been focused on the southern Basin.
"Expert advice from the MDBA has highlighted the benefits of environmental water recovery in the northern Basin.
"Unlike the southern Basin, flows in northern Basin rivers are more naturally variable and rely on floods to reconnect them after extended dry periods.
"Recovering environmental water in the north will mean more water is available to help restore river connectivity and get water into wetlands, waterholes and floodplains when it is most needed.
"That is particularly critical for iconic northern Basin wetlands like the Ramsar-listed Macquarie Marshes in north-western NSW, an eco-system that was listed as endangered last month, based on recommendations from Australia's Threatened Species Scientific Committee.
"We will look at water entitlement offers made through the EOI process to see how that water could help improve river connectivity or ecological outcomes in a particular catchment.
"Those assessments will inform whether we proceed to a tender to purchase water in those catchments."
