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Integrated water management

Rural water use: the role of market mechanisms (2.1mb)

Markets are already making a significant contribution to allocating water to higher value uses. But further reform to rural water markets will improve water use efficiency and reduce environmental problems related to altered river flows and salinity.

This report by the Productivity Commission suggests two sets of complementary actions are required:
- Removal of impediments to efficient operation of existing water markets
- Creation of new water and water related markets.

The report considers a range of potential market mechanisms to address environmental externalities associated with irrigation salinity and altered river flows.

 

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