Registration of interest for transferring water access licences to Aboriginal legal entities

Aboriginal peoples are currently estimated to own less than 1% of all licensed water in NSW. Transfers of water access licences surrendered to the Minister is a step towards increasing Aboriginal ownership of water access licences that can be used for any purpose, including for trade.

General water access licences that have been surrendered to the Minister are being offered. The following categories of licences are being offered:

• Regulated river (general security)
• Supplementary water (only in regulated river water sources)
• Unregulated river
• Aquifer
• Aquifer (high security)

These water access licence have different rules about when, where and how the water can be taken.

These licences don’t expire. They are ongoing unless the licence or shares are sold to someone else (via trade) or surrendered back to the Minister.

The number of shares offered to eligible participants who registered interest in surrendered licences depends on:

• how much surrendered water is available in the water source, 
• the number of applications received from other eligible participants, and
• how many shares each participant is interested in holding. 
   

Licences will be transferred at no cost to eligible participants who accept their final offer. These are general water access licences, which entitle their holder to take a specified share of water from a specified water source, under the conditions set in the relevant water sharing plan. 

Water can be taken for any purpose, including agriculture, other commercial, cultural, or environmental purposes. An approval to authorise the work (e.g. pump or bore) needed to take the water is also required.

Water access licences can also be traded.

Yes, there is a minimum annual charge to hold a water access licence based on the number of licence shares held. If water is physically taken from the water source there is also a charge for the volume of water taken.

These charges cover part of the cost of water management by government agencies and are set by the Independent Pricing and Regulatory Tribunal NSW (see Setting water prices | IPART).

For the 2026-2027 water year the minimum charge is $312. The annual charges generally increase each water year (1 July to 30 June). 

More information about water management fees and charges.

Aboriginal people, including individuals, can apply for an Aboriginal cultural water specific purpose access licence in all water sources in NSW. These are licences to take water for cultural purposes. There are no costs to apply for them and until at least mid-2029 no annual water charges. There is a limit of 10ML/yr per licence, except in the Murrumbidgee Regulated River Water Source. There are restrictions on the purposes these licences can be used for.

In some water sources, Aboriginal community development specific purpose access licences and supplementary water (Aboriginal environmental) access licences can also be applied for and granted. Aboriginal community development licences can be used for commercial activities owned and/or operated by Aboriginal organisations and in some cases can be traded for the same use. 

These licences can only be granted for water to be taken for their specific purpose.

Water can be taken once:

• the water access licence has been transferred from the Minister to the new licence holder, and the transfer has been registered with NSW Land Registry Services,
• approvals for all water supply works (e.g. pumps or bores) needed to take the water have been obtained,
• the licence nominates (identifies) the approved works for taking water under the licence. 

Once eligible participants can start taking water under a licence, they are responsible for ensuring they only take water when it is permitted under the licence conditions. 

Water does not have to be taken under a licence. The licence can be traded. Water supply works and approvals for these works are not required unless the licensed water is going to be taken.

A bore is usually needed to take groundwater, and a pump is usually needed to take surface water. A water storage (dam) may also be required, such as when large volumes of water are taken at one time for use later. 

There may be other equipment required like a reticulation system to move water around the property from the dam or water source.

Depending on the water source, and the number of shares that you obtain through this process, and the type and size of equipment/infrastructure you use to take water, you may need to install a meter on your pump, bore or storage and comply with recording and reporting requirements. If a meter is not required, you will still need to record and report the volume of water taken.

More information about metering can be found on the non-urban metering for water users webpage and through the metering guidance tool.

Visit WaterNSW for further information regarding water management fees and charges.

Participants who accept an offer of a water access licence are responsible for the costs for any infrastructure they need if they wish to take water, including the costs to apply for water supply work approvals.  NSW or Commonwealth government grants may become available in the future that could help to financially support those requirements.

Yes. These access licences, shares or water allocation can be traded under the rules of the relevant water sharing plan and the Access Licence Dealing Principles Order 2004. 

If you want to trade water to generate income, it is recommended you investigate whether there is an active water market in the water source the licence is in before accepting any offer of licensed water. Information about previous trades is free of charge.

There are application fees to do trades (dealings). You can find more information on those costs.

This video explains how to navigate the Trade Dashboard and find whether there is an active trading market (temporary or permanent trades) in specific water sources, including volume and average weighted prices per share.

There is a difference between the trading rules for coastal water sources and inland water sources:

Most water sharing plans in inland NSW restrict trading across water sources, e.g. trading between surface water and groundwater is generally not permitted. In groundwater systems, trading is only permitted within the same groundwater source. 

In coastal NSW, trading between regulated, unregulated and groundwater sources is not permitted. Trading may be allowed between some highly connected unregulated and alluvial groundwater sources, but this is specified in the relevant water sharing plan. Water cannot be traded across areas that are not hydrologically connected (that is, where the water sources do not drain into or out of each other). Where there are high ecological values, trade is generally not allowed.

Information about water trading in NSW can be found on the department’s Trade webpage and the WaterNSW Trading Water webpage. Note this is mainly applicable to inland areas however there is general information which applies across NSW.

Information about water trading in coastal NSW can be found water trading in coastal NSW fact sheet.

The general water access licences transferred to eligible Aboriginal entities from this process can be permanently sold to anyone in the same way anyone else can sell a water access licence.

Through permanently or temporarily trading a water access licence the holder will receive income which, consistent with self-determination principles, can be used for purposes that meet the needs of the Aboriginal entity (e.g. education, housing, health).

Yes, but annual water charges will still apply. These charges will be reduced if the licence holder has metering equipment that records that water was not taken. 

In regulated water sources, water is ordered and stays in the river until the licence holder that ordered the water takes it out. If it is not taken by the licence holder it can remain in the river and that portion of water will not be taken by other users. In regulated systems, if an Aboriginal licence holder wants the water to stay in the river for environmental purposes, an Aboriginal cultural water specific purpose access licence could be used to achieve this purpose. These are free to apply for and until at least mid-2029 do not have annual water management charges. 

In unregulated water sources, water is shared between licence holders, the environment and people with basic landholder rights, based on the rules in the water sharing plan. Water is not ordered, and users take water when allowed by the rules in the water sharing plan, which are often related to the river height or flow rate. This means that any water not taken under a licence may not be protected from being taken by other users.

Yes, the water can be traded to other people who have equipment/infrastructure (known as ‘works’ e.g. pumps, bores or dams) to take water, or an application for an approval for works to take water can be made later. However, the licence holder is liable for annual water charges even if no water is taken.