{"id":"F2009L02424","name":"Water Market Rules 2009","slug":"water-market-rules-2009","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":79337,"registerId":"commonwealth-F2009L02424-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Water Market Rules 2009","content":"![](image.001.png)\n\nWater Market Rules 2009\n\nas amended\n\nmade under section 97 of the\n\nWater Act 2007\n\nThis compilation was prepared on 14 March 2013 \ntaking into account amendments up to the Water Market Amendment Rules 2012\n\nPrepared by the Department of Sustainability, Environment, Water, Population and Communities, Canberra\n\nContents\n\nPart 1 Preliminary\n\n1 Name of Rules\n\n2 Commencement\n\n3 Definitions\n\n4 Transitional provision for application of these Rules\n\nPart 2 Facilitation of transformation\n\n5 Irrigation infrastructure operators to inform irrigators of the making of these Rules\n\n6 Irrigation infrastructure operator to establish procedures for transformation\n\nPart 3 Irrigation right\n\n7 Irrigation infrastructure operator to provide details of irrigation right\n\nPart 4 Water delivery rights\n\n8 Contractual terms and conditions of water delivery rights\n\n9 Continuation of water delivery services\n\n10 Security may be required for payment of fees or charges for delivery of water\n\nPart 5 Applications relating to transformation of irrigation rights\n\n11 Application for transformation where water access entitlement is to be held by applicant\n\n12 Application for transformation where water access entitlement is to be held by person other than the operator or the applicant\n\n13 Fees\n\n14 Irrigation infrastructure operator to process applications efficiently\n\nPart 6 General\n\n15 Operator to notify ACCC if unable to meet timelines or approve an application for transformation\n\n16 Irrigation infrastructure operators to facilitate transformation arrangements\n\n17 Irrigation infrastructure operator not to prevent or delay trading of water access entitlement\n\n18 Irrigation infrastructure operators not to take security except in accordance with these Rules\n\n19 Water delivery right not to be terminated by reason only of application for transformation\n\n20 Contractual arrangements between irrigation infrastructure operators and holders of irrigation rights or water access entitlements\n\n21 Irrigation infrastructure operators to notify irrigators of relevant changes to constitution, contracts etc\n\nPart 7 Proceedings for damages\n\n22 Proceedings to recover loss or damage\n\nNotes\n\nPart 1 Preliminary\n\n1 Name of Rules\n\nThese Rules are the Water Market Rules 2009.\n\n2 Commencement\n\nThese Rules commence on the day after they are registered.\n\n3 Definitions\n\nIn these Rules, unless the contrary intention appears:\n\n> Act means the Water Act 2007.\n\n> business day, in relation to an obligation of an irrigation infrastructure operator, does not include a Saturday, Sunday or day that is a public holiday in the place where the operator’s principal place of business is situated.\n\n> civil penalty means a civil penalty within the meaning of Division 4 of Part 8 of the Act.\n\n> Note Subsection 97 (8) of the Act provides that the civil penalty for a contravention of a provision of the water market rules is 200 penalty units.\n\n> Note: Subsection 147 (3) of the Act provides that the pecuniary penalty for a contravention of a civil penalty provision must not exceed:\n\n> Note: (a) if the wrongdoer is an individual — the relevant amount specified for the civil penalty provision; or\n\n> Note: (b) otherwise — an amount equal to 5 times the amount of the relevant amount specified for the civil penalty provision.\n\n> contract includes agreement.\n\n> trade includes transfer.\n\n> transformation, in relation to the whole or a part of an irrigation right against an irrigation infrastructure operator, means the transformation of the whole of that right, or a part of that right, in accordance with transformation arrangements, into a water access entitlement.\n\n> transformation arrangements means arrangements of the kind referred to in paragraph 97 (1) (a) of the Act.\n\n> transitional period means the period beginning on the commencement of these Rules and ending on 31 December 2009.\n\n4 Transitional provision for application of these Rules\n\nUntil the end of the transitional period:\n\n(a) a provision of a contract, arrangement or understanding between an irrigation infrastructure operator and a person who has an irrigation right or a water delivery right against the operator that is in force immediately before the commencement of these Rules continues to have the same force and effect as it would have if these Rules had not been made; and\n\n(b) a reference in these Rules to business days has effect as a reference to business days after the end of the transitional period.\n\n \n\nPart 2 Facilitation of transformation\n\n5 Irrigation infrastructure operators to inform irrigators of the making of these Rules\n\nAs soon as possible after the commencement of these Rules, each irrigation infrastructure operator must, by written notice, inform each person who has an irrigation right against the operator that these Rules have been made, how copies may be obtained and how the ACCC may be contacted for further information about these Rules or its role in relation to them.\n\n6 Irrigation infrastructure operator to establish procedures for transformation\n\n(1) An irrigation infrastructure operator (not being an operator to whom subrule (2) applies) must establish clear procedures for the transformation, in accordance with these Rules, of the whole or a part of an irrigation right held against the operator and:\n\n(a) may include in those procedures provisions under which a person may ascertain details of an irrigation right and associated water delivery right held by the person against the operator; and\n\n(b) must ensure that, no later than the end of the transitional period:\n\n(i) details of those procedures; and\n\n(ii) procedures for applying for transformation;\n\nare readily available to persons holding irrigation rights against the operator.\n\nCivil penalty: 200 penalty units.\n\n(2) An irrigation infrastructure operator to whom this subrule applies who, after the end of the transitional period, receives from a holder of an irrigation right against the operator a notice in writing of an intention to apply for, or a written application for, transformation, must ensure that details of procedures for the transformation of irrigation rights, including procedures for applying for transformation, are readily available to the holder.\n\nCivil penalty: 200 penalty units.\n\n(3) Subrule (2) applies to an irrigation infrastructure operator who, under water access entitlements held by the operator, is not entitled to take or hold 10 000 ML or more of water for irrigation purposes only.\n\n> Note Operators may develop their own forms for applications for transformation or may use forms prepared by the ACCC.\n\n \n\nPart 3 Irrigation right\n\n7 Irrigation infrastructure operator to provide details of irrigation right\n\n(1) If a person who holds an irrigation right against an irrigation infrastructure operator gives written notice to the operator that the person:\n\n(a) intends to apply, or applies, for transformation of the whole or a part of that right; and\n\n(b) requests the operator to provide details of the contractual or other arrangements between the operator and the person relating to the irrigation right;\n\nthe operator must, within 20 business days after receiving the notice, provide:\n\n(c) the details of the contractual or other arrangements, including —\n\n(i) the number of units or volume of water to which the person is entitled under the irrigation right as at the date of receipt of the notice; and\n\n(ii) such details as are reasonably necessary to confirm the accuracy of the calculation of the number of units or volume; and\n\n(d) if the operator reduces that number of units or volume in accordance with subrule (2) for the purposes of transformation, the number of units or volume of water as so reduced.\n\nCivil penalty: 200 penalty units.\n\n(2) Except as provided in subrule (3), an irrigation infrastructure operator may reduce the number of units or volume of water to which the holder of an irrigation right is entitled, for the purposes of transformation of the right, by a number of units or volume of water:\n\n(a) calculated in accordance with the formula:\n\n![](image.002.png)\n\nwhere:\n\n> A is the number of units or volume of water by which the entitlement may be reduced under this rule; and\n\n> B is the number of units or volume of water to which the holder of the irrigation right is entitled through the operator’s network as at the date of the request under subrule (1); and\n\n> C is the total number of units or volume of water to which holders of irrigation rights against the operator are entitled through the operator’s network as at the date of the request under subrule (1) (disregarding any reductions made under this rule); and\n\n> D is the average number of units or volume of the operator's irrigation fixed network loss in respect of the 10 financial years immediately before the financial year in which the request under subrule (1) is made (less any reductions made under this rule); or\n\n(b) the number of units or volume of water agreed in writing between the holder and the operator.\n\n(3) Subrule (2) does not apply if, immediately before providing the details under subrule (1), the irrigation infrastructure operator held a separate water access entitlement relating to loss of water during distribution of water to holders of irrigation rights.\n\n(4) If a reduction is calculated in accordance with paragraph (2) (a), the irrigation infrastructure operator must provide to the holder of the irrigation right such details as are reasonably necessary to confirm the accuracy of the calculation.\n\n(5) If the holder of an irrigation right against an irrigation infrastructure operator believes that details provided under this rule are not complete or are incorrect and:\n\n(a) seeks to reach agreement with the operator as to the details of the irrigation right (including the number of units or volume of water to which the holder is entitled before any reduction is made under subrule (2)); and\n\n(b) the parties do not agree on the details within 10 business days after receipt of the details;\n\nthe holder may give notice in writing to the operator that the holder seeks a formal negotiation of the matter.\n\n(6) A formal negotiation for the purposes of subrule (5) is a genuine attempt by the operator to reach agreement with the holder of the irrigation right, within 30 business days after the giving of the notice under that subrule, as to the details of the irrigation right.\n\n(7) If a notice is given to an irrigation infrastructure operator under subrule (5), the operator must not fail to make a genuine attempt to reach agreement on the details of the irrigation right within 30 business days.\n\nCivil penalty: 200 penalty units.\n\n(8) If, in accordance with subrule (2), an irrigation infrastructure operator reduces the number of units or volume of water to which the holder of an irrigation right is entitled for the purposes of transformation, the number of units or volume of water by which the entitlement is reduced is to be taken to be a part of the irrigation right that the holder continues to hold and to represent the share of the fixed network loss borne by the holder.\n\n(9) If a person who:\n\n(a) holds a part of an irrigation right representing a share of a fixed network loss referred to in subrule (8) against an irrigation infrastructure operator; and\n\n(b) does not hold, or ceases to hold, a water delivery right against the operator;\n\nthe part of the irrigation right referred to in paragraph (a) is revoked.\n\n(10) In this rule:\n\n> fixed network loss, in relation to an irrigation infrastructure operator, means, in respect of a financial year, the number of units or volume of water lost, as estimated by the operator, during the distribution of water through the operator’s irrigation network to the point of delivery to holders of irrigation rights but does not include variable water loss.\n\n> genuine attempt includes the taking of such steps as would reasonably be expected to result in the appointment of a third person to resolve the dispute.\n\n> variable water loss means the number of units or volume of water:\n\n(a) lost during the distribution of water through the operator’s irrigation network to the point of delivery to holders of irrigation rights; and\n\n(b) attributable to the number of units or volume of water delivered to the holders of irrigation rights.\n\n \n\nPart 4 Water delivery rights\n\n8 Contractual terms and conditions of water delivery rights\n\n(1) If a person who holds an irrigation right against an irrigation infrastructure operator gives written notice to the operator that the person:\n\n(a) intends to apply, or applies, for transformation of the whole or a part of that right; and\n\n(b) requires the continuation of a right to have water delivered by the operator after transformation, whether or not the person holds a water access entitlement obtained as the result of transformation;\n\nthe operator must, within 20 business days after receiving the notice, provide details of the contractual terms and conditions between the operator and the person applicable to the right to have water delivered when the notice is received with such variations (if any) to take effect from transformation as are permitted under subrule (2).\n\n(2) The operator must not make any variations to the contractual terms and conditions between an irrigation infrastructure operator and another person referred to in subrule (1) other than variations that:\n\n(a) are necessary as a consequence of the transformation; or\n\n(b) are agreed in writing by the operator and that person.\n\n(3) If:\n\n(a) a person who gives notice to an irrigation infrastructure operator under subrule (1) believes that the terms and conditions of the right to have water delivered after transformation have not been provided by the irrigation infrastructure operator under that subrule or that the details provided are incorrect; or\n\n(b) the operator and the person do not agree on a variation of the terms or conditions within 10 business days after the operator provides the written details under subrule (1);\n\nthe person may give notice in writing to the operator that the person seeks a formal negotiation of the matter.\n\n(4) A formal negotiation under subrule (3) is a genuine attempt by the irrigation infrastructure operator to reach agreement with the person, within 30 business days after the giving of the notice under that subrule, as to the terms and conditions of the right to have water delivered.\n\n(5) If a notice is given to an irrigation infrastructure operator under subrule (3), the operator must not fail to make a genuine attempt to reach agreement within 30 business days as to the terms and conditions of the right to have water delivered.\n\nCivil penalty: 200 penalty units.\n\n(6) In this rule, genuine attempt includes the taking of such steps as would reasonably be expected to result in the appointment of a third person to resolve the dispute.\n\n9 Continuation of water delivery services\n\nAn irrigation infrastructure operator:\n\n(a) must provide details of a right to have water delivered that continues after transformation in accordance with subrule 8 (1); and\n\n(b) must not make any variation to contractual terms and conditions of a right to have water delivered that continues after transformation except as authorised under subrule 8 (2); and\n\n(c) must provide water delivery services in accordance with the terms and conditions of a right to have water delivered that continues after transformation in accordance with rule 8.\n\nCivil penalty: 200 penalty units.\n\n10 Security may be required for payment of fees or charges for delivery of water\n\n(1) Where a person, by written notice given to an irrigation infrastructure operator under subrule 8 (1), requires the continuation of a right to have water delivered by the operator after transformation of the whole or a part of an irrigation right and, after the transformation, either:\n\n(a) the person ceases to hold any part of the irrigation right (except as provided in subrule 7 (8)); or\n\n(b) the person holds a part of that right but the volume of water to delivery of which the person is entitled under the water delivery right in respect of the current financial year (disregarding any constraints on delivery) is more than 5 times the volume of water that the person is entitled to receive in respect of that year under the part of the right held by the person (excluding, if the person holds a part of an irrigation right as provided in subrule 7 (8), the volume of water taken to be the share of a fixed network loss);\n\nthe operator may, subject to this rule, require security to be given by the person for the payment of fees or charges for access to the operator’s irrigation network for the delivery of water to the person after the transformation.\n\n(1A) If a person’s water delivery right has been converted from an entitlement to a volume of water to an entitlement on a flow rate basis or other basis:\n\n(a) subrule (1) applies to the entitlement under the water delivery right as if it were an entitlement to the delivery of a volume of water; and\n\n(b) for the purposes of determining that volume, the irrigation infrastructure operator:\n\n(i) must convert the entitlement under the water delivery right to a volume of water by applying the same formula as was used when the entitlement was converted to the flow rate basis or other basis (subject to any necessary adjustment on account of any restructure of the entitlement after its conversion); and\n\n(ii) must provide to the person details in writing that reasonably confirm that the requirement for security is in accordance with paragraph (1) (b).\n\n(1B) Where a person, by written notice given to an irrigation infrastructure operator under subrule 8 (1), requires the continuation of a right to have water delivered by the operator after transformation of the whole or a part of an irrigation right and:\n\n(a) when first issued, the right to have water delivered is an entitlement to a specified number of units under a water delivery right, being an entitlement:\n\n(i) to the same number of units as the number of units to which the person is entitled under the irrigation right; or\n\n(ii) to a number of units reasonably representing the person's right immediately before the issue and agreed in writing by the person and the operator; and\n\n(b) after the transformation, the person:\n\n(i) ceases to hold any part of that irrigation right (except as provided in subrule 7 (8)); or\n\n(ii) subject to subrule (1C), the number of units to which the person is entitled under the water delivery right in respect of the current financial year is more than 5 times the number of units to which the person is entitled in respect of that year under the irrigation right (excluding, if the person holds a part of an irrigation right as provided in subrule 7 (8), the number of units taken to be the share of a fixed network loss):\n\nthe operator may, subject to this rule, require security to be given by the person for the payment of fees or charges for access to the operator's irrigation network for the delivery of water to the person after the transformation.\n\n(1C) Subparagraph (1B) (b) (ii) does not apply if there is any change to the entitlement to a specified number of units under the water delivery right after it is first issued (otherwise than as a result of the acquisition, transfer or termination of units initiated by the holder of the right).\n\n(2) An irrigation infrastructure operator must not require security to be given by a person under this rule in an amount that, at the time the security is given:\n\n(a) exceeds the amount that, under the Water Charge (Termination Fees) Rules 2009, would be payable to the irrigation infrastructure operator for the termination of the water delivery right held by the person against the operator at that time; or\n\n(b) if there is no such amount, exceeds the amount of the total network access charge within the meaning of those Rules payable to the operator in respect of the year in which the security is given.\n\n(3) An irrigation infrastructure operator must not refuse to accept security by reason only of the form in which it is offered if a person offers it in 1 or more of the following forms:\n\n(a) where part of an irrigation right is transformed, a charge over a part of the irrigation right that the person continues to hold;\n\n(b) a charge over an unencumbered water access entitlement, or an unencumbered part of a water access entitlement, obtained by the person as the result of the transformation of part of an irrigation right;\n\n(c) a charge over any other unencumbered water access entitlement, or unencumbered part of a water access entitlement, held by the person;\n\n(d) a guarantee given by an authorised deposit‑taking institution within the meaning of the Banking Act 1959;\n\n(e) a deposit lodged with the irrigation infrastructure operator;\n\n(f) any other form of security agreed upon by the irrigation infrastructure operator and the person.\n\n> Note Rule 18 provides that security must not be required or given in relation to transformation arrangements except as provided in this rule.\n\n \n\nPart 5 Applications relating to transformation of irrigation rights\n\n11 Application for transformation where water access entitlement is to be held by applicant\n\n(1) An irrigation infrastructure operator may require an application for the transformation of the whole or a part of an irrigation right held against the operator by a person who intends to hold a water access entitlement obtained as the result of the transformation to be in writing and to include any of the following:\n\n(a) the name and address of the applicant;\n\n(b) the account number, or other details, identifying the applicant as the holder of an irrigation right against the operator;\n\n(c) the number and type of units, or the volume, of water to which the applicant is entitled under the whole, or the part, of the irrigation right;\n\n(d) if another person holds a legal or equitable interest in the whole or the part of the irrigation right, as the case requires, confirmation that that person has given approval to the application;\n\n(e) whether the applicant wishes to have, or to continue to have, a right to have water delivered by the operator after the transformation, whether or not the applicant continues to hold an irrigation right or a water access entitlement obtained as a result of the transformation;\n\n(f) any other information reasonably necessary for the purposes of transformation arrangements.\n\n(2) An irrigation infrastructure operator must not require from an applicant for transformation of the whole or a part of an irrigation right any information that is not reasonably necessary for the proposed transformation arrangements.\n\n> Note Termination charges under water charge rules may apply if the applicant does not retain a water delivery right.\n\n12 Application for transformation where water access entitlement is to be held by person other than the operator or the applicant\n\n(1) An irrigation infrastructure operator may require an application for the transformation of the whole or a part of an irrigation right held against the operator where the water access entitlement obtained as the result of the transformation is to be held by a person other than the applicant to be in writing and to include any of the following:\n\n(a) the name and address of the applicant;\n\n(b) the account number, or other details, identifying the applicant as the holder of an irrigation right against the operator;\n\n(c) the number and type of units, or the volume, of water to which the applicant is entitled under the whole, or the part, of the irrigation right;\n\n(d) if another person holds a legal or equitable interest in the whole or the part of the irrigation right, as the case requires, confirmation that that person has given approval to the application;\n\n(e) whether the applicant wishes to continue to have a right to have water delivered by the operator after the transformation, whether or not the applicant continues to hold a part of the irrigation right or a water access entitlement obtained as a result of the transformation;\n\n(f) the name of the person (not being the applicant or the operator) who is to hold the water access entitlement obtained as a result of the transformation;\n\n(g) details of any water access entitlement to which the whole or part of the entitlement that is sought is to be appended;\n\n(h) any other information reasonably necessary for the purposes of transformation arrangements.\n\n(2) An irrigation infrastructure operator must not require from an applicant for transformation of the whole or a part of an irrigation right any information that is not reasonably necessary for the proposed transformation arrangements.\n\n13 Fees\n\n(1) An irrigation infrastructure operator may require an application under rule 11 or 12 for transformation of the whole or a part of an irrigation right to be accompanied by:\n\n(a) a fee for the transformation; and\n\n(b) if applicable, a fee relating to a water delivery right.\n\n(2) The fees determined by an irrigation infrastructure operator in relation to an application under rule 11 or 12 must not exceed an amount based on the recovery of the reasonable and efficient costs incurred, or likely to be incurred, by the operator in processing the application.\n\nCivil penalty: 200 penalty units.\n\n14 Irrigation infrastructure operator to process applications efficiently\n\n(1) Subject to subrule (2), an irrigation infrastructure operator who receives an application for the transformation of the whole or a part of an irrigation right against the operator must advise the applicant in writing if:\n\n(a) the application is not complete or is not in accordance with these Rules; or\n\n(b) the application is not accompanied by the relevant fees applicable to the application; or\n\n(c) there are any outstanding charges or fees payable by the applicant to the operator in respect of the irrigation right;\n\nand specify the further information that is required, the fees payable or the outstanding charges payable, as the case requires.\n\n(2) An irrigation infrastructure operator must, after receiving an application for the transformation of the whole or a part of an irrigation right, advise the applicant in writing no later than 5 business days after the end of the relevant period:\n\n(a) that the application is approved; or\n\n(b) if the operator is unable to approve the application within the relevant period because:\n\n(i) a person who holds a legal or equitable interest in the irrigation right has refused to give approval; or\n\n(ii) a requirement under a law of a State cannot be satisfied; or\n\n(iii) the applicant has not provided the information required, or paid the fees or outstanding charges, referred to in subrule (1);\n\nthat the application has not been approved for one or more of the reasons referred to above and that the ACCC has been so advised as required under rule 15.\n\n(3) In this rule:\n\n> relevant period, in relation to a decision whether or not to approve an application for transformation of an irrigation right, means the period of 20 business days after:\n\n(a) receipt by the irrigation infrastructure operator of the application; or\n\n(b) where further information, a fee or outstanding charges are requested under subrule (1), receipt by the operator of the further information, the fee or outstanding charges, or an agreement is made between the operator and the applicant for the payment of outstanding charges, as the case requires;\n\n> whichever is the later but:\n\n(c) if the applicant has requested details of the relevant irrigation right under rule 7 or, under rule 8, required the continuation of a right to have water delivered, does not include any period before the details of the irrigation right or right to have water delivered are agreed; and\n\n(d) if appropriate steps have been taken:\n\n(i) to obtain the approval of a person holding a legal or equitable interest in the irrigation right; or\n\n(ii) to satisfy a requirement under a law of the State;\n\n> does not include the business days after the steps are taken and before the approval is given or refused or the requirement satisfied, or advice received to the effect that it cannot be satisfied.\n\n \n\nPart 6 General\n\n15 Operator to notify ACCC if unable to meet timelines or approve an application for transformation\n\n(1) If an irrigation infrastructure operator is unable:\n\n(a) to reach agreement with the holder of an irrigation right on the details of the right within a period of 30 business days after a notice seeking a formal negotiation of the matter is given under subrule 7 (5); or\n\n(b) to reach agreement with the holder of an irrigation right on the details of a water delivery right within a period of 30 business days after a notice seeking a formal negotiation of the matter is given under subrule 8 (3);\n\nthe operator must, within that period, notify the ACCC in writing of the reasons why the operator is unable to reach agreement within that period.\n\n(2) If an irrigation infrastructure operator is unable to approve an application for transformation of the whole or a part of an irrigation right within the relevant period under rule 14, the operator must, no later than 5 business days after the end of that period, notify the ACCC in writing of the reasons why the operator is unable to approve the application within that period.\n\n16 Irrigation infrastructure operators to facilitate transformation arrangements\n\n(1) If an irrigation infrastructure operator receives, from a person who has an irrigation right against the operator, a request in writing for the transformation of the whole or a part of the irrigation right the operator must not do, or fail to do, an act in a way that prevents, or unreasonably delays, the transformation.\n\nCivil penalty: 200 penalty units.\n\n(2) Anything done or omitted to be done under and in accordance with these Rules does not constitute a prevention or unreasonable delay under subrule (1).\n\n17 Irrigation infrastructure operator not to prevent or delay trading of water access entitlement\n\n(1) An irrigation infrastructure operator must not do, or fail to do, an act in a way that prevents or unreasonably delays the trading, by a person who had an irrigation right against the operator, of the whole or a part of a water access entitlement obtained as the result of transformation arrangements made with that operator.\n\nCivil penalty: 200 penalty units.\n\n(2) Anything done or omitted to be done under and in accordance with these Rules does not constitute a prevention or unreasonable delay under subrule (1).\n\n18 Irrigation infrastructure operators not to take security except in accordance with these Rules\n\n(1) An irrigation infrastructure operator must not require, and must not accept, security:\n\n(a) in relation to the transformation of an irrigation right; or\n\n(b) in relation to:\n\n(i) a water delivery right; or\n\n(ii) a water access entitlement right;\n\nobtained in connection with the transformation of an irrigation right held by a person against the operator.\n\nCivil penalty: 200 penalty units.\n\n(2) Subrule (1) does not apply in relation to security given in connection with the grant of a water delivery right under rule 10.\n\n19 Water delivery right not to be terminated by reason only of application for transformation\n\nAn irrigation infrastructure operator must not, as a condition of approving an application for transformation, terminate, or require the applicant to terminate, any right to have water delivered held by the applicant against the operator.\n\nCivil penalty: 200 penalty units.\n\n20 Contractual arrangements between irrigation infrastructure operators and holders of irrigation rights or water access entitlements\n\n(1) An irrigation infrastructure operator must not include in a contract, arrangement or understanding entered into between the operator and a person who holds an irrigation right against the operator or a water access entitlement obtained as the result of transformation arrangements a provision that:\n\n(a) seeks to impose a charge or fee that is not:\n\n(i) a regulated water charge; or\n\n(ii) a fee authorised under rule 13; or\n\n> Note Section 91 of the Act provides that a fee for terminating access to an operator’s network is a regulated water charge.\n\n(b) restricts or seeks to restrict, or discriminates against, a person, or class of persons, with or to whom the holder of an irrigation right or a water access entitlement obtained as the result of transformation of an irrigation right proposes to trade the whole or a part of the entitlement; or\n\n(c) imposes a restriction based solely on the category or attributes of the irrigation right or water access entitlement; or\n\n(d) any other provision that may prevent or unreasonably delay transformation of the whole or a part of an irrigation right.\n\nCivil penalty: 200 penalty units.\n\n(2) Subrule (1) does not apply to a term or condition that:\n\n(a) is required or expressly permitted by or under a law of the relevant State, or authorised by a licence granted to the relevant irrigation infrastructure operator under such a law, and applicable to the operator’s irrigation network; or\n\n(b) requires a person:\n\n(i) who is the holder of the whole or a part an irrigation right against an irrigation infrastructure operator or of a water access entitlement obtained as a result of the transformation of a part of that right; and\n\n(ii) who intends to continue to hold a water delivery right against the operator after transformation;\n\nto install a water meter to measure the water delivered from the operator’s network; or\n\n(c) requires the approval of a person who holds a legal or equitable interest in an irrigation right to be given before the right, or a part of the right, is transformed.\n\n21 Irrigation infrastructure operators to notify irrigators of relevant changes to constitution, contracts etc\n\n(1) An irrigation infrastructure operator must, by written notice given to each person who holds an irrigation right against the operator, provide information about any changes made after the commencement of these Rules to the operator’s constitution, management, supply contracts, water delivery rights or any other contracts, arrangements or understandings, being changes that affect, or may affect, the respective rights and obligations of the operator and the holder in relation to transformation arrangements.\n\n(2) An irrigation infrastructure operator must give notice of a change referred to in subrule (1) within 10 business days after the change is made.\n\n> Note The changes referred to in this rule include changes made for the purposes of compliance with these Rules.\n\n \n\nPart 7 Proceedings for damages\n\n22 Proceedings to recover loss or damage\n\nA person who suffers loss or damage as a result of conduct, or an omission, of another person that contravenes these Rules may recover the amount of the loss or damage by action against that other person or against any person involved in the contravention.\n\n> Note See subsection 97 (9) of the Act.\n\n> Notes to the Water Market Rules 2009\n\n> Note 1\n\n> Note: The Water Market Rules 2009 (in force under section 97 of the Water Act 2007) as shown in this compilation includes amendments as indicated in the Tables below.\n\n> Note: > Note: Table of Instruments\n\n| Title | Date of FRLI registration | Date ofcommencement | Application, saving ortransitional provisions |\n| --------------------------------- | ------------------------------ | ------------------- | --------------------------------------------- |\n| Water Market Rules 2009 | 22 June 2009 (see F2009L02424) | 23 June 2009 | |\n| Water Market Amendment Rules 2012 | 16 Oct 2012 (see F2012L02044) | 17 Oct 2012 | — 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How affected

Part 3

Paragraph 7(1)(b)

am. F2012L02044

Paragraph 7(1)(c)

rs. F2012L02044

Paragraph 7(2)(a)

am. F2012L02044

Part 4

Subrule 10(1A)

ad. F2012L02044

Subrule 10(1B)

ad. F2012L02044

Subrule 10(1C)

ad. F2012L02044

\n```","sortOrder":0}],"analysis":{"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"},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The Rules implement a narrowly framed policy: convert irrigation rights into water access entitlements and remove operator impediments to that conversion and trade. The 2012 amendments clarified calculation and treatment of certain delivery entitlements (including conversion from flow‑rate bases) and adjusted some procedural text, but did not materially broaden the Rules beyond that original purpose. Changes are refinements and clarifications to implementation mechanics rather than an expansion of scope."},"complexity_factors":["22 substantive rules across 7 Parts with multiple procedural steps","Multiple defined terms and cross‑references to the Water Act 2007, Water Charge (Termination Fees) Rules 2009 and the ACCC functions","Several distinct timelines (20 business days, 30 business days, 5 business days, transitional period to 31 Dec 2009) and different ‘relevant period’ calculations (rule 14)","A numeric reduction formula in rule 7(2)(a) that uses variables A–D and a 10‑year average for fixed network loss","Numerous conditional exceptions and exemptions (e.g. rule 7(3) exempts reduction where operator holds separate loss entitlement; rule 10 has multiple sub‑exceptions for different forms of delivery entitlement)","Security rules that cap amounts by reference to another instrument (Water Charge (Termination Fees) Rules 2009) and list acceptable forms of security (rule 10)","Nested negotiation and dispute processes (10 business day disagreement window, then 30 business day ‘genuine attempt’ requirement)","Civil penalty provisions repeated across many rules (standard 200 penalty units) and private right to damages (rule 22)","Amendments (2012) that alter several subrules and add new subrules (10(1A)–(1C)), adding interpretation complexity"],"plain_english_summary":"**What these Rules do (mechanically)**\n\n- They set out how irrigation rights (rights to receive water through an irrigation operator’s network) are converted — or “transformed” — into formal, tradeable water access entitlements under the Water Act 2007. (See definition of transformation; Parts 2–5.)\n\n- They impose specific duties on irrigation infrastructure operators (the companies or bodies that run irrigation networks) to enable that transformation: publish procedures, supply contract details and delivery‑right details on request, process applications within set timeframes, and not to unreasonably delay or prevent transformation or subsequent trading. (Rules 5, 6, 7, 8, 14, 16, 17.)\n\n- They give operators a defined method to reduce an irrigator’s nominal entitlement before transformation to reflect the operator’s fixed network loss (a pro‑rata reduction using a 10‑year average) unless the operator already holds a separate water access entitlement for loss. Operators must disclose the calculation and negotiate if the irrigator disputes it. (Rule 7(2)–(4), (8)–(9).)\n\n- They require operators, on written request from a holder seeking transformation, to provide within 20 business days the contractual details that underpin the irrigation right and any continuing right to water delivery after transformation; they must continue to provide delivery services under those terms except for variations required by transformation or agreed in writing. (Rules 7–9.)\n\n- They set out when an operator may require security for future delivery fees after transformation (for example, where a person gives up their irrigation right but retains a delivery right that exposes the operator to unpaid delivery charges). The amount of required security is capped (referencing the Water Charge (Termination Fees) Rules 2009 or the total network access charge). Operators must accept prescribed forms of security (e.g. charge over entitlement, bank guarantee, deposit). (Rule 10.)\n\n- They allow operators to charge fees for processing transformation applications but cap those fees at the reasonable and efficient costs of processing. Operators must decide on applications within specified periods and must notify the ACCC in writing if they cannot meet timelines or reach agreement through negotiation. (Rules 11–15.)\n\n- They restrict contract terms that operators can include: operators cannot impose unlisted charges, discriminatory trading restrictions, or other provisions that would prevent or unreasonably delay transformation or trade, except where required or expressly permitted by State law or for limited technical matters (e.g. meters, approval of co‑owners). (Rule 20.)\n\n- They provide civil enforcement and remedies: many operator obligations carry civil penalties (200 penalty units) and affected persons may recover loss or damage by action. (Various rules and Rule 22.)\n\n\n**Who this affects**\n\n- Holders of irrigation rights who want to convert those rights into water access entitlements and potentially trade them. They are the applicants for transformation and may retain or request continued delivery services.\n\n- Irrigation infrastructure operators, who must create procedures, provide information, process applications within time limits, may apply reductions for fixed network loss, may require capped security in limited circumstances, and must avoid imposing contractual barriers to transformation and trading.\n\n- Affected third parties: anyone with legal or equitable interests in an irrigation right (their approval may be required), and the ACCC, which receives notifications and acts as the regulator to whom operators must report failures to meet the Rules.\n\n\n**Why it matters (claimed purpose and mechanical trade-offs)**\n\n- The Rules are framed to convert legacy, operator‑based irrigation rights into formal, tradeable water access entitlements and to keep operators from blocking or delaying that market transformation (Parts 2–6). The stated aim is to facilitate the development of a more transparent and tradable water market.\n\n- Costs and incentives: operators must expend administrative resources to prepare procedures, respond to information requests and process applications within tight timelines (20 business days; see rule 14). Operators may retain value by allocating fixed network loss as an unreformed portion of the irrigation right (rule 7(2)–(8)); that mechanism reduces the volume that an irrigator can transform and therefore affects the amount available for trade. Irrigators bear potential costs in (a) the reduction applied for fixed network loss, (b) any termination charges under separate water‑charge rules if they give up delivery rights, and (c) providing or arranging security where permitted (rule 10). Fees for processing applications are recoverable but limited to reasonable and efficient costs (rule 13).\n\n- Implementation and dispute risks: the fixed network loss calculation uses the operator’s 10‑year average (rule 7(2)(a)), which can be a source of factual dispute; the Rules create a formal negotiation window (10 business days plus a 30 business day negotiation period) and require operators to make a “genuine attempt” to reach agreement (rules 7(5)–(7), 8(3)–(5)). If negotiation fails, operators must notify the ACCC with reasons (rule 15), creating administrative oversight but not an automatic arbitration mechanism in the Rules themselves.\n\n- Effects on private choice and markets: the Rules remove some contractual barriers to trade (rule 20) and prohibit discriminatory trading restrictions, which promotes ability to trade entitlements. At the same time, the fixed‑loss allocation and permitted capped securities are concrete mechanisms that can reduce the tradable quantity or place economic limits on who can hold delivery rights after transformation.\n\n\n**Who pays, who decides, and what behaviour changes**\n\n- Who pays: irrigators pay fees for processing (capped at reasonable costs), may bear termination fees under separate water‑charge rules, and may need to provide security for post‑transformation delivery charges in defined circumstances (rule 10). Operators absorb administrative costs but can recover processing costs and retain a share of fixed network loss unless they hold separate loss entitlements (rule 7(3)).\n\n- Who decides: irrigation infrastructure operators make the operational decisions (procedures, calculations of fixed network loss, acceptance of particular security forms, approval/refusal within statutory timelines). The ACCC is the oversight recipient and may be notified of non‑compliance or delay (rules 5, 15). Courts remain available for damages claims (rule 22).\n\n- Expected behaviour change: operators must put in place published procedures and act within set timeframes; irrigators can seek transformation and expect contractual continuity for delivery rights; trades of water access entitlements must not be unreasonably impeded by operator practices or contract terms.\n\n\n**Key sections to consult directly for detail**\n- Fixed network loss and calculation: Rule 7(2)–(4), (8)–(9).\n- Timeframes and application processing: Rules 7(1), 8(1), 14(2).\n- Security and caps: Rule 10 (esp. 10(1)–(3)).\n- Contract restrictions and prohibited terms: Rule 20.\n- Enforcement and remedies: Civil penalties noted throughout; damages in Rule 22.\n\n(Amendments made in 2012 alter some paragraph and subrules in Parts 3 and 4, notably to clarify entitlement calculations and to add conversion rules for flow‑rate based delivery entitlements.)"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation appears to maintain its original scope focused on facilitating the transformation of irrigation rights into tradeable water access entitlements. The 2012 amendments visible in the Table of Amendments are minor technical adjustments to Rule 7 (irrigation right details) and Rule 10 (security requirements), adding subrules 10(1A)-(1C) to address flow rate conversions and unit-based entitlements. These amendments refine operational details rather than expanding the fundamental purpose of the Rules."},"complexity_factors":["Mathematical formula for network loss calculations in Rule 7(2) with four defined variables (A, B, C, D)","Nested conditional logic throughout — Rule 10 alone has subrules 10(1), 10(1A), 10(1B), 10(1C), 10(2), and 10(3) with cross-references to other rules and external legislation (Water Charge (Termination Fees) Rules 2009)","Multiple defined terms in Rule 3 including technical concepts like 'fixed network loss', 'variable water loss', and 'transformation arrangements'","Extensive cross-referencing to the Water Act 2007 and other subordinate legislation","Time-bound procedural requirements with multiple exceptions (e.g., 'relevant period' definition in Rule 14(3) has four separate conditional clauses)","Dual pathways for applications depending on who will hold the resulting entitlement (Rules 11 vs 12)","Formal negotiation procedures with specific timeframes (30 business days) and escalation to ACCC","Transitional provisions that temporarily preserve existing contracts (Rule 4)"],"plain_english_summary":"These rules let farmers convert old irrigation-tied rights into modern, tradeable water access entitlements, affecting irrigation operators, irrigators and overseer ACCC. They require operators to be transparent, not unreasonably block conversions, charge only reasonable costs, allow continued network delivery, and permit free trading of transformed entitlements.\n\nThe regime also permits operators to adjust volumes for fixed network losses in limited cases and enforces compliance with civil penalties and damages — unlocking water market flexibility while protecting users and infrastructure viability."}},"importantCases":[],"_links":{"self":"/api/acts/water-market-rules-2009","history":"/api/acts/water-market-rules-2009/history","analysis":"/api/acts/water-market-rules-2009/analysis","conflicts":"/api/acts/water-market-rules-2009/conflicts","importantCases":"/api/acts/water-market-rules-2009/important-cases","documents":"/api/acts/water-market-rules-2009/documents"}}