Temporary Water

Temporary Water is water that has been allocated from an entitlement (permanent water) for use in an irrigation season.  Each state has different rules regarding how the water is allocated. In a regulated system, the water is stored in a dam and released when needed for irrigation.

The owner of the temporary water has the option to use the water for irrigator or trade it to another irrigator within the same trading zone. The water could also be traded to a different trading zone if the trading rules allow it.

The price of temporary water is determined via supply and demand, with many factors impacting it.  Such factors could be current water availability in storages, crop demand and the weather.  Given these factors, temporary water prices can be quite volatile.