{"id":"F2010L02466","name":"Murray-Darling Basin Agreement (Schedule D — Permissible Transfers between Trading Zones) Protocol 2010","slug":"murray-darling-basin-agreement-schedule-d-permissible-transfers-between-trading-zones-protocol-2010","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":84404,"registerId":"commonwealth-F2010L02466-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Murray-Darling Basin Agreement (Schedule D — Permissible Transfers between Trading Zones) Protocol 2010","content":"![Commonwealth Coat of Arms of Australia](image.001.png)\n\nMurray-Darling Basin Agreement (Schedule D — Permissible Transfers between Trading Zones) Protocol 2010\n\nmade under clause 6 of Schedule D to the Murray-Darling Basin Agreement and section 18E of the\n\nWater Act 2007\n\nCompilation No. 1\n\nCompilation date: 19 June 2025\n\nIncludes amendments: F2025L00696\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the Murray-Darling Basin Agreement (Schedule D — Permissible Transfers between Trading Zones) Protocol 2010 that shows the text of the law as amended and in force on 19 June 2025 (the compilation date).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments\n\nThe effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.\n\nApplication, saving and transitional provisions for provisions and amendments\n\nIf the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.\n\nModifications\n\nIf the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nContents\n\n1 Name of Protocol\n\n3 Revocation\n\n4 Application\n\n5 Definitions\n\n6 Restriction on transfers\n\n7 Transfers across the Choke\n\n8 Accounting for allocation transfers across the Choke\n\n9 Exceptional circumstances for allocation transfers across the Choke\n\n10 Co-operation between approval authority and the Authority\n\n11 Transfers into and out of the Lower Darling\n\nEndnotes\n\nEndnote 1—About the endnotes\n\nEndnote 2—Abbreviation key\n\nEndnote 3—Legislation history\n\nEndnote 4—Amendment history\n\n1 Name of Protocol\n\nThis Protocol is the Murray-Darling Basin Agreement (Schedule D — Permissible Transfers between Trading Zones) Protocol 2010.\n\n> Note This Protocol deals with matters referred to in paragraph 6 (1) (e) of Schedule D to the Agreement.\n\n3 Revocation\n\nAll previous protocols made under paragraph 6 (1) (e) of Schedule D to the Agreement are revoked.\n\n4 Application\n\nThis Protocol applies to transfers between States and between valleys by:\n\n(a) allocation transfer; or\n\n(b) exchange rate trade; or\n\n(c) tagged trade.\n\n5 Definitions\n\nIn this Protocol:\n\n> Act means the Water Act 2007.\n\n> allocation account means an allocation account under paragraph 8 (2) (b).\n\n> approval authority, in relation to a transfer, means the relevant licensing authority or water authority.\n\n> back trade means a transfer from one trading zone to another trading zone, being a transfer that is no greater in volume than the net volume of preceding transfers between the same trading zones in the opposite direction and the volume available in the relevant valley account.\n\n> Choke means the Barmah Choke.\n\n> entitlement record means an entitlement record under paragraph 8 (2) (a).\n\n> Snowy Water Enquiry Deed means the Snowy Water Enquiry Outcome Implementations Deed made between the Governments of the Commonwealth, New South Wales and Victoria on 3 June 2002.\n\n> trading zone means an area described in column 1 of Table 1 in section 6.\n\n> Note Several other words and expressions used in this Protocol have the meaning given by the Act (including the Agreement), for example:\n\n> Note:  Authority\n\n> Note:  Committee\n\n> Note:  exchange rate trade\n\n> Note:  tagged trade.\n\n6 Restriction on transfers\n\n(1) A person diverting or using water within a trading zone described in column 1 of an item in Table 1:\n\n(a) may transfer an entitlement or allocation only into a trading zone specified in column 2 of that item; and\n\n(b) may receive a transfer of an entitlement or allocation only from a trading zone specified in column 3 of that item; and\n\n(2) If:\n\n(a) a trading zone specified in column 2 of an item in Table 1 is identified as “back trade only” — a person may transfer an entitlement (by exchange rate but not by tag trade) or allocation, into the trading zone only from the trading zone described in column 1 of the item by back trade; and\n\n(b) a trading zone specified in column 3 of an item in Table 1 is identified as “back trade only” — a person may transfer an entitlement (by exchange rate but not by tag trade) or allocation, only from the trading zone into the trading zone described in column 1 of the item by back trade.\n\n(3) If:\n\n(a) a trading zone specified in column 2 of an item in Table 1 is identified as “conditional” — a transfer of an entitlement or allocation into the trading zone from the trading zone described in column 1 of the item is subject to any conditions imposed by the relevant licensing authority; and\n\n(b) a trading zone specified in column 3 of an item in Table 1 is identified as “conditional” — a person may only transfer an entitlement or allocation from the trading zone into the trading zone described in column 1 of the item subject to any conditions imposed by the relevant licensing authority.\n\n(4) Each of subsections (1), (2), and (3) is separate and independent and is not to be read down by reference to any of the others of those subsections.\n\n(5) A State Contracting Government must ensure that licensing authorities within the State:\n\n(a) do not approve transfers between trading zones unless the transfers comply with this section; and\n\n(b) do not refuse to approve transfers that comply with this section unless the reasons for refusal are outside the scope of this Protocol.\n\n(6) A number mentioned in column 2 or 3 of Table 1 means the trading zone described in column 1 of Table 1 with that item number.\n\nTable 1\n\n| Item | Column 1                                                                                                                                                                                                           | Column 2                                                         | Column 3                                                           |\n| ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------- | ------------------------------------------------------------------ |\n|      | For this trading zone…                                                                                                                                                                                             | Transfers may be made to these trading zones…                    | Transfers may be made from these trading zones…                    |\n| 1    | Greater Goulburn (includes Lake Eildon to Goulburn Weir; Goulburn irrigation areas; and Loddon weir pool)                                                                                                          | 3, 6, 6B, 7, 10, 11, 12back trade only: 4A, 4C, 5A, 13, 14*      | 4A, 4C, 5Aback trade only: 3, 6**, 6B, 7, 10**, 11, 12, 13, 14*    |\n| 3    | Lower Goulburn (includes Goulburn River below Goulburn Weir)                                                                                                                                                       | 6, 7, 10, 11, 12back trade only: 1, 4A, 4C, 5A, 6B, 13, 14*      | 1, 4A, 4C, 5Aback trade only: 6**, 6B, 7, 10**, 11, 12, 13, 14*    |\n| 4A   | Campaspe (includes Lake Eppalock to Waranga Western Channel; and Campaspe District)                                                                                                                                | 1, 3, 4C, 6, 6B, 7, 10, 11, 12back trade only: 5A, 13, 14*       | 4Cback trade only: 1, 3, 5A, 6**, 6B, 7, 10**, 11, 12, 13, 14*     |\n| 4C   | Lower Campaspe (includes lower Campaspe River from Waranga Western Channel to Murray River)                                                                                                                        | 1, 3, 4A, 6, 6B, 7, 10, 11, 12back trade only: 5A, 13, 14*       | 1, 4A, 5Aback trade only: 3, 6**, 6B, 7, 10**, 11, 12, 13, 14*     |\n| 5A   | Part Loddon (includes Loddon River and Tullaroop Creek; from Cairn Curran and Tullaroop reservoirs to Loddon Weir; and Serpentine Creek system above Bears Lagoon)                                                 | (conditional) 1, 3, 6, 6B, 7, 10, 11, 12back trade only: 13, 14* | back trade only: 1, 3, 6**, 6B, 7, 10**, 11, 12, 13, 14*           |\n| 6    | Vic Murray above Barmah Choke** (includes River Murray from Lake Hume to Barmah Choke; Mitta Mitta River below Lake Dartmouth; and Murray Valley area)                                                             | 10back trade only**: 1, 3, 4A, 4C, 5A, 6B, 7, 11, 12 13, 14*     | 1, 3, 4A, 4C, 5A, 6B, 7, 10, 11, 12, 13                            |\n| 6B   | Lower Broken Creek (includes Broken Creek downstream of Katamatite)                                                                                                                                                | 6, 7, 10, 11, 12back trade only: 1, 3, 4A, 4C, 5A, 13, 14*       | 1, 4A, 4C, 5Aback trade only: 3, 6**, 7, 10**, 11, 12, 13, 14*     |\n| 7    | Vic Murray from Barmah Choke to SA Border (includes Torrumbarry area, Tresco, Nyah, Robinvale, Red Cliffs, Merbein and FMIT irrigation districts)                                                                  | 6, 10, 11, 12back trade only: 1, 3, 4A, 4C, 5A, 6B, 13, 14*      | 1, 3, 4A, 4C, 5A, 6B, 11, 12, 13back trade only**: 6, 10           |\n| 10   | NSW Murray above Barmah Choke (includes River Murray from Lake Hume to Barmah Choke; and Murray Irrigation Ltd areas, including Wakool Irrigation District)                                                        | 6back trade only**: 1, 3, 4A, 4C, 5A, 6B, 7, 11, 12, 13, 14*     | 1, 3, 4A, 4C, 5A, 6, 6B, 7, 11, 12, 13                             |\n| 11   | NSW Murray below Barmah Choke (includes River Murray from Barmah Choke to SA border (including the Edwards/ Wakool system and the Western Murray Irrigation District))                                             | 6, 7, 10, 12back trade only: 1, 3, 4A, 4C, 5A, 6B, 13, 14*       | 1, 3, 4A, 4C, 5A, 6B, 7, 12, 13back trade only**: 6, 10            |\n| 12   | South Australian Murray*** (includes River Murray in SA and Trust districts)                                                                                                                                       | 6, 7, 10, 11back trade only: 1, 3, 4A, 4C, 5A, 6B, 13, 14*       | 1, 3, 4A, 4C, 5A, 6B, 7, 11, 13back trade only**: 6, 10            |\n| 13   | Murrumbidgee consisting of Murrumbidgee Irrigation and Colleambally Irrigation areas; Murrumbidgee and Tumut below Burrinjuck and Blowering reservoirs (including Yanko, Colombo and Billabong Creek systems) only | 6, 7, 10, 11, 12, 15back trade only: 1, 3, 4A, 4C, 5A, 6B, 14*   | 15back trade only: 1, 3, 4A, 4C, 5A, 6**, 6B, 7, 10**, 11, 12, 14* |\n| 14   | Lower Darling* (includes Menindee Lakes and the Darling River downstream of the Menindee Lakes)                                                                                                                    | 6, 7, 10, 11, 12back trade only: 1, 3, 4A, 4C, 5A, 6B, 13        | back trade only: 1, 3, 4A, 4C, 5A, 6**, 6B, 7, 10**, 11, 12, 13    |\n| 15   | Murrumbidgee and tributaries within the ACT                                                                                                                                                                        | 13                                                               | 13                                                                 |\n\n> Note \\* Trade to and from the Lower Darling is subject to section 11.\n\n> Note \\*\\* Trade through the Barmah Choke is subject to sections 7 to 10.\n\n> Note \\*\\*\\* South Australia is divided into four ‘cap valleys’. The three cap valleys from and to which water entitlements and water allocations may be transferred are:\n\n> Note: (a) SA Country Towns; and\n\n> Note: (b) SA Reclaimed Swamps; and\n\n> Note: (c) SA All Other Purposes.\n\n7 Transfers across the Choke\n\n(1) Environmental water entitlements derived from water savings made downstream of the Choke before 1 July 2007 for the purposes of the Snowy Water Enquiry Deed must be accounted for in the following manner:\n\n(a) the volume of any such water entitlement to be used to improve flows in the Snowy River must not, for the purposes of this Protocol, be used to offset back trade from above to below the Choke; and\n\n(a) the volume of any such water entitlement to be used to improve flows in the River Murray must be counted as existing water entitlement below the Choke, and must not, for the purposes of this Protocol, be used to offset back trade from above to below the Choke.\n\n(2) Except for:\n\n(a) water entitlements that were transferred before 1 July 2007 (including the transfers referred to in paragraph (1) (a)); and\n\n(b) environmental water entitlements that were derived from water savings made downstream of the Choke after 1 July 2007 pursuant to the Snowy Water Enquiry Deed to be used to improve flows in the River Murray;\n\nthe volume of any transfer of water entitlements from below to above the Choke may, for the purposes of this Protocol:\n\n(c) be counted as entitlement transferred from below to above the Choke; and\n\n(d) be used to offset back trade from above to below the Choke.\n\n(3) A water entitlement may not be transferred from above to below the Choke, except where the entitlement has previously been entered in the entitlement record as having been transferred from below to above the Choke.\n\n(4) Without limiting subsection (2), a transfer for the purposes of that subsection includes any transfer pursuant to:\n\n(a) an agreement between Governments (other than transfers referred to in paragraph (1) (a)) for the purpose of improving flows in the Snowy River; and\n\n(b) trading between the holders of entitlements.\n\n8 Accounting for allocation transfers across the Choke\n\n(1) The purpose of this section is to ensure that no net transfer of water allocations from above to below the Choke occurs in any year after 1 July 2007.\n\n(2) The Authority must establish and maintain the following:\n\n(a) an entitlement record with respect to each of New South Wales, South Australia and Victoria, which sets out each water entitlement transferred from below the Choke in that State to above the Choke in any State on or after 1 July 2007; and\n\n(b) an allocation account setting out the net volume of:\n\n(i) water used above the Choke in the current year pursuant to allocations made under any water entitlement entered in an entitlement record; plus\n\n(ii) the net transfer of allocations from any State below the Choke to any State above the Choke.\n\n(3) For paragraph (2) (a), water entitlement:\n\n(a) includes any environmental water entitlement derived from water savings made downstream of the Choke pursuant to the Snowy Water Enquiry Deed to be used to improve flows in the Snowy River; and\n\n(b) does not include any such environmental water entitlements to be used to improve flows in the River Murray.\n\n(4) The Authority must:\n\n(a) add to the entitlement record for each State every water entitlement transferred from below the Choke in that State to above the Choke on or after 1 July 2007; and\n\n(b) remove from the entitlement record every water entitlement that is subsequently transferred from above to below the Choke in the relevant State.\n\n(5) The allocation account must:\n\n(a) be set at zero on 1 July in each year; and\n\n(b) be increased by the volume of water used on or after that date pursuant to any water entitlement entered in an entitlement record; and\n\n(c) be increased by the volume of each transfer of an allocation from below to above the Choke on or after that date; and\n\n(d) be decreased by the volume of each proposed transfer of an allocation traded down from above to below the Choke on or after that date.\n\n(6) Subsection 10 (4) applies to any proposed transfer of an allocation referred to in paragraph (5) (d) if the transfer would result in a negative balance in the allocation account.\n\n9 Exceptional circumstances for allocation transfers across the Choke\n\nDespite any other provision of this Protocol, for any year in which the Authority estimates that the level of water allocations made, or to be made, in any or all of New South Wales and Victoria from a source described in Appendix 1 to Schedule D to the Agreement will significantly reduce the usual constraints on channel capacity at the Choke, the Authority, after consulting the Committee, may determine:\n\n(a) that water allocations may be transferred from above to below the Choke, other than as back trade; and\n\n(b) the period during which such transfers may occur; and\n\n(c) the total volume of such transfers;\n\nsubject to such conditions as the Authority may determine after consulting the Committee.\n\n10 Co-operation between approval authority and the Authority\n\n(1) If an approval authority approves the transfer of a water entitlement, or the transfer of an allocation, from below to above the Choke, the approval authority must promptly advise the Authority.\n\n(2) The relevant water authority for a district in which water is used pursuant to an allocation made under a water entitlement entered in an entitlement record must promptly advise the Authority of the volume of any water used pursuant to that allocation.\n\n(3) Before an approval authority approves any back trade of an allocation from above to below the Choke, the transferor’s authority must advise the Authority of the proposed transfer.\n\n(4) The Authority, having regard to the relevant entitlement records and the allocation account, must promptly advise the approval authority whether the proposed transfer may be approved.\n\n(5) If the Authority advises an approval authority under subsection (4) that a transfer may not be approved, the approval authority must refuse to approve the transfer.\n\n(6) If the Authority advises an approval authority that a transfer may be approved, the Authority must promptly adjust the relevant entitlements record and the allocation account accordingly.\n\n(7) An approval authority that receives advice from the Authority under subsection (6) must notify the Authority within 7 days after the date of the Authority’s advice if the proposed transfer is approved.\n\n(8) If an approval authority does not notify the Authority in accordance with subsection (7):\n\n(a) the Authority must reverse the adjustments referred to in subsection (6) and advise the approval authority of the reversal; and\n\n(b) the approval authority must refuse to approve the transfer.\n\n11 Transfers into and out of the Lower Darling\n\n(1) For the purposes of this Protocol, the Menindee Lakes Storage is:\n\n(a) under Authority control during any period when, after falling to 480 000 ML, the volume has exceeded 640 000 ML and has not again fallen to 480 000 ML; and\n\n(b) under New South Wales control at any time after the volume has fallen below 480 000 ML and has not yet exceeded 640 000 ML.\n\n(2) Until the Ministerial Council resolves otherwise, an entitlement must not be transferred into or out of the Lower Darling Valley.\n\n> Note See subclause 13 (3) of Schedule D to the Agreement.\n\n(3) Allocations may be transferred either into or out of the Lower Darling Valley when the Menindee Lakes Storage is under Authority control if:\n\n(a) the Authority considers that there is sufficient volume in the Menindee Lakes Storage to satisfy the volume of:\n\n(i) the transfer; and\n\n(ii) all transfers into or out of the Lower Darling Valley previously approved in that year or any previous year for which a corresponding amount of water has not yet been released or taken from Menindee Lakes Storage; and\n\n(iii) any evaporative losses, that may be determined in consultation with New South Wales, associated with a transfer into the Lower Darling Valley that was approved in a previous year;\n\nwithout the volume falling to 480 000 ML; and\n\n(b) the Authority considers that the transfer will be called out of Menindee Lakes Storage before the volume of the Menindee Lakes Storage falls to 480 000 ML.\n\n(4) Allocations may not be transferred into or out of the Lower Darling Valley when the Menindee Lakes Storage is under New South Wales control unless:\n\n(a) in consultation with the Authority and the Committee, New South Wales has determined to allow allocations to be transferred out of the Lower Darling Valley; and\n\n(b) it has been identified that there would be no significant impact to third parties as a result of allocation transfers being approved; and\n\n(c) it has been identified that there would be no adverse impacts on State water entitlements under the Agreement\n\n> Note When calculating whether Menindee Lakes Storage is under Authority control or New South Wales control, the Authority must factor in the volume attributable to any previously approved transfers for which a corresponding amount of water has not yet been released from or taken from Menindee Lakes Storage.\n\n> Note: Endnotes\n\n> Note: Endnote 1—About the endnotes\n\nThe endnotes provide information about this compilation and the compiled law.\n\nThe following endnotes are included in every compilation:\n\nEndnote 1—About the endnotes\n\nEndnote 2—Abbreviation key\n\nEndnote 3—Legislation history\n\nEndnote 4—Amendment history\n\nAbbreviation key—Endnote 2\n\nThe abbreviation key sets out abbreviations that may be used in the endnotes.\n\nLegislation history and amendment history—Endnotes 3 and 4\n\nAmending laws are annotated in the legislation history and amendment history.\n\nThe legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.\n\nThe amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.\n\nMisdescribed amendments\n\nA misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.\n\nIf a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.\n\n> Note: Endnote 2—Abbreviation key\n\n| ad = added or inserted                         | orig = original                     |\n| ---------------------------------------------- | ----------------------------------- |\n| am = amended                                   | par = paragraph(s)/subparagraph(s)  |\n| amdt = amendment                               | /sub‑subparagraph(s)                |\n| c = clause(s)                                  | pres = present                      |\n| C[x] = Compilation No. x                       | prev = previous                     |\n| Ch = Chapter(s)                                | (prev…) = previously                |\n| def = definition(s)                            | Pt = Part(s)                        |\n| Dict = Dictionary                              | r = regulation(s)/rule(s)           |\n| disallowed = disallowed by Parliament          | reloc = relocated                   |\n| Div = Division(s)                              | renum = renumbered                  |\n| exp = expires/expired or ceases/ceased to have | rep = repealed                      |\n| effect                                         | rs = repealed and substituted       |\n| F = Federal Register of Legislation            | s = section(s)/subsection(s)        |\n| gaz = gazette                                  | Sch = Schedule(s)                   |\n| LA = Legislation Act 2003                      | Sdiv = Subdivision(s)               |\n| LIA = Legislative Instruments Act 2003         | SLI = Select Legislative Instrument |\n| (md not incorp) = misdescribed amendment       | SR = Statutory Rules                |\n| cannot be given effect                         | Sub‑Ch = Sub‑Chapter(s)             |\n| mod = modified/modification                    | SubPt = Subpart(s)                  |\n| No. = Number(s)                                | underlining = whole or part not     |\n| o = order(s)                                   | commenced or to be commenced        |\n| Ord = Ordinance                                |                                     |\n\n> Note: Endnote 3—Legislation history\n\n| Name                                                                                                                                 | Registration              | Commencement       | Application, saving and transitional provisions |\n| ------------------------------------------------------------------------------------------------------------------------------------ | ------------------------- | ------------------ | ----------------------------------------------- |\n| Murray-Darling Basin Agreement (Schedule D — Permissible Transfers between Trading Zones) Protocol 2010                              | 14 Sep 2010(F2010L02466)  | 15 Sep 2010 (s 2)  |                                                 |\n| Murray-Darling Basin Agreement (Schedule D — Permissible Transfers between Trading Zones) Amendment (ACT Trading Zone) Protocol 2025 | 18 June 2025(F2025L00696) | 19 June 2025 (s 2) | —                                               |\n\n> Note: Endnote 4—Amendment history\n\n| Provision affected | How affected   |\n| ------------------ | -------------- |\n| s 2                | rep LA s 48D   |\n| s 6                | am F2025L00696 |","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"The Protocol appears to maintain its original scope as a technical implementation instrument for Schedule D of the Murray-Darling Basin Agreement. The 2025 amendment added the ACT trading zone (item 15) to Table 1, which is a natural expansion of the trading framework rather than a scope creep beyond the Protocol's original purpose of managing inter-zone water transfers."},"complexity_factors":["Dense cross-referencing between table entries, notes, and substantive sections (e.g., Table 1 notes referring to sections 7-11)","Nested conditional logic in section 6 with multiple overlapping restrictions (back trade only, conditional, standard transfers)","Dual accounting mechanisms required (entitlement records and allocation accounts in section 8) with specific mathematical operations (add, remove, increase, decrease)","State-specific variations and the need to track water control status (Authority vs NSW control for Menindee Lakes in section 11)","Temporal cut-offs and exceptions (pre- and post-1 July 2007 dates in section 7 creating different treatment categories)","Multiple defined terms (10 explicit definitions in section 5 plus incorporated terms from parent Act/Agreement)","Exceptional circumstances override provision (section 9) creating discretionary powers that modify standard rules","Procedural coordination requirements between approval authorities and the Authority (section 10) with specific timeframes (7 days) and reversal mechanisms"],"plain_english_summary":"This Protocol governs inter‑regional trading of water rights across Murray‑Darling Basin trading zones, limiting who can buy/sell where and tightly restricting upstream “back trades” and transfers through the capacity‑constrained Barmah Choke. It also imposes special conditions and bans on permanent entitlement moves into/out of the Lower Darling/Menindee Lakes unless storage and authority conditions are met. It affects irrigators, state licensing authorities and the Murray‑Darling Basin Authority, aiming to keep trade economically useful while matching allocations to physical river capacity."},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"This compilation includes a 2025 amendment (F2025L00696) that altered section 6 and added a trading zone for Murrumbidgee and tributaries within the Australian Capital Territory (Item 15 in Table 1). That amendment expands the geographic scope of permissible transfers by formally adding the ACT as a trading zone participant for transfers with the Murrumbidgee (Table 1, item 15). Mechanically this increases the number of permitted transfer paths and creates new notification/approval interactions between ACT-related authorities, the Authority and the States. The amendment therefore broadened the instrument’s geographic and administrative scope beyond its original 2010 trading‑zone map, while keeping the Protocol’s core mechanics (Choke accounting, entitlement records, back‑trade restrictions, Menindee controls) intact."},"complexity_factors":["Table 1 listing 15 trading zone items with asymmetric allowances (column 2 vs column 3) and many ‘back trade only’ and ‘conditional’ flags","Multiple defined terms and cross‑references: definitions in s5 plus numerous references to the Water Act 2007, Schedule D to the Agreement, and the Snowy Water Enquiry Deed","Separate special regime for Barmah Choke with linked sections 7–10 (entitlement/accounting/approval interactions)","Entitlement record and allocation account with reset and annual balance logic (s8) and linkages to approvals (s10)","Nested conditional rules and exceptions (e.g. environmental entitlements treated differently under s7 and s8(3))","Controls on Lower Darling transfers tied to storage thresholds and dual control regimes (s11) that require inter‑jurisdictional coordination","Approval/notification workflow with mandatory refusal if the Authority objects (s10(4)–(6)), increasing operational complexity","Recent amendment to s6 (2025) adding an ACT trading zone (item 15) and altering Table 1—adds new inter‑zone relationships and administrative paths","Numerous cross‑references and consultation requirements (Authority, Committee, approval authorities, State governments) creating multi‑actor decision chains"],"plain_english_summary":"**What this Protocol does, simply**\n\n- This instrument sets the legal rules for moving water entitlements and water allocations between defined “trading zones” inside the Murray–Darling Basin. (See Table 1 and section 6.)\n- It tells who can send water to whom, when transfers must be done as “back trade” (a return transfer), when approvals may bear additional conditions, and when transfers are forbidden. (See section 6.)\n- It creates special rules for transfers that cross the Barmah Choke (the narrow channel on the Murray known as the Choke): it prevents a net movement of allocation volume from upstream-to-downstream after 1 July 2007 unless strict accounting or exceptional rules apply. (See sections 7–10 and 8.)\n- It imposes record‑keeping and notification duties on the Murray–Darling Basin Authority (the Authority) and the State licensing/approval authorities so the accountancy and approval decisions are coordinated. (See section 8 and section 10.)\n- It places additional controls on transfers into or out of the Lower Darling (Menindee Lakes area) linked to specific storage thresholds and whether the Authority or New South Wales is in control of the storage. (See section 11.)\n\n**Who this affects**\n\n- Holders of water entitlements and holders of water allocations in the listed trading zones. (Table 1 and section 5.)\n- State licensing authorities and water authorities that approve or record transfers (they must follow the Protocol). (See section 6(5) and section 10.)\n- The Murray–Darling Basin Authority, which must keep entitlement records and allocation accounts and advise approval authorities. (See sections 8 and 10.)\n- When transfers touch South Australia, New South Wales, Victoria or the Lower Darling, the relevant State governments and their water agencies are directly affected by the operational constraints in the Protocol. (See Table 1, notes, and section 11.)\n\n**How it works (mechanics)**\n\n- Trading zones are listed in Table 1 (items 1–15). For each zone the Table specifies which other zones water entitlements or allocations may be transferred to (column 2) and from (column 3). Transfers that are allowed only as back trade or only on approval conditions are flagged in the Table. (Section 6 and Table 1.)\n- “Back trade” is a transfer from one trading zone to another that does not exceed the net earlier transfers in the opposite direction and the volume available in the relevant valley account (definition in section 5). Back trade rules limit one‑way extraction of capacity and protect against cyclic net loss. (Section 5 and section 6(2).)\n- The Authority must keep: (a) entitlement records for entitlements transferred from below to above the Barmah Choke on or after 1 July 2007; and (b) an allocation account that tracks volumes used above the Choke and allocation transfers across the Choke, and which is reset to zero each 1 July. Those records are used to enforce a rule that there must be no net transfer of allocation volumes from above to below the Choke in any year after 1 July 2007. (Section 8.)\n- Approval authorities must notify the Authority of transfers from below to above the Choke and of proposed back‑trades from above to below. The Authority advises whether the proposed back‑trade may be approved; if the Authority says no, the approval authority must refuse the transfer. If the Authority says yes it must adjust its records and the approval authority must notify the Authority when the transfer is actually approved. (Section 10.)\n- The Protocol preserves specific treatment for environmental water derived under the Snowy Water Enquiry Deed and prevents those entitlements earmarked for certain river improvements being used to offset back trade across the Choke. (Section 7.)\n- Transfers to and from the Lower Darling (Menindee Lakes) are tightly constrained by storage trigger levels defined in section 11 and by whether the storage is under Authority or NSW control. Broadly, entitlements are frozen until Ministerial Council resolves otherwise (section 11(2)), and allocations may move only under limited tests when Authority control applies (section 11(3)).\n\n**Why those mechanisms exist (official rationale), and what that implies about trade‑offs**\n\n- The Protocol’s stated purpose is to manage physical and interstate limits on channel capacity (especially at the Barmah Choke), protect environmental water commitments arising from the Snowy Water Enquiry Deed, and to ensure that water trading does not create net unwarranted movement of allocations downstream of the Choke. (Sections 7–9 and the notes to section 6.)\n\n- Practical implications and trade‑offs:\n  - Administrative cost and compliance work increases for the Authority and State approval authorities: they must maintain records, track allocations, exchange timely notifications and refuse or approve transfers on the Authority’s advice (sections 8 and 10).\n  - Market flexibility for entitlement and allocation holders is constrained by the Table’s permitted routes, by “back trade only” restrictions, by conditional approval hooks, and by Choke and Menindee storage tests (section 6, sections 7–11). That raises transaction costs and can reduce liquidity in some trading paths.\n  - The Protocol creates discretionary power (the Authority can set volumes, periods and conditions for exceptional allocation transfers across the Choke after consulting the Committee, section 9). Discretion helps manage physical risk but also concentrates decision‑making in the Authority and Committee, which may produce uneven outcomes depending on how discretion is exercised (section 9 and section 10). \n  - Environmental entitlements created under the Snowy Water Enquiry Deed are given a special accounting treatment so they cannot simply be used to offset trade‑flows across the Choke; this protects particular environmental commitments but removes those volumes from market offset uses (section 7 and section 8(3)).\n  - Transfers involving the Lower Darling are subject to storage triggers and a test that third parties and State entitlements won’t be harmed; that protects third‑party and State interests but limits transfers when storage is low (section 11(2)–(4)).\n\n**Who pays and who decides**\n\n- Who pays: licence‑holders and entitlement holders incur transaction and compliance costs (fees, paperwork, potential delays) when seeking transfers; States and the Authority bear administrative costs for record‑keeping and enforcement. Market prices may adjust where transfer pathways are restricted, affecting buyers and sellers economically.\n- Who decides: State approval/licensing authorities decide whether to grant transfers but must follow the Protocol and the Authority’s advice on Choke‑related transfers (sections 6(5) and 10). The Authority decides on accounting, records, and whether exceptional transfers across the Choke may occur (sections 8–10). The Committee is consulted for exceptional determinations (section 9).\n\n**Material implementation and risk points**\n\n- The system depends on accurate, timely reporting between approval authorities, water authorities and the Authority; failures or delays can produce incorrect allocation accounting and wrongful approvals or refusals (section 10).\n- The Authority holds practical discretion to allow exceptional transfers (section 9) and to treat particular environmental entitlements differently (section 7 and 8(3)). That discretion reduces purely mechanical trading but increases the need for transparent criteria and timely decisions.\n\n**Short summary of statutory anchors**\n\n- Core permissions and limits: section 6 and Table 1 (which trading zones may send to / receive from which other zones, and flags for “back trade only” or “conditional”).\n- Choke accounting and prohibition on net upstream→downstream allocation transfers after 1 July 2007: sections 7–10 and 8 (entitlement records and allocation account).\n- Special Lower Darling / Menindee Lakes tests and storage triggers: section 11.\n\n(References in parentheses refer to the Protocol sections cited.)"},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/murray-darling-basin-agreement-schedule-d-permissible-transfers-between-trading-zones-protocol-2010","history":"/api/acts/murray-darling-basin-agreement-schedule-d-permissible-transfers-between-trading-zones-protocol-2010/history","analysis":"/api/acts/murray-darling-basin-agreement-schedule-d-permissible-transfers-between-trading-zones-protocol-2010/analysis","conflicts":"/api/acts/murray-darling-basin-agreement-schedule-d-permissible-transfers-between-trading-zones-protocol-2010/conflicts","importantCases":"/api/acts/murray-darling-basin-agreement-schedule-d-permissible-transfers-between-trading-zones-protocol-2010/important-cases","documents":"/api/acts/murray-darling-basin-agreement-schedule-d-permissible-transfers-between-trading-zones-protocol-2010/documents"}}