THE water market remains in a position to withstand future droughts despite changing demand for water in the southern Murray-Darling Basin, a report has found.
The study by the Australian Bureau of Agricultural and Resource Economics and Sciences found increased demand for water for almonds in the Sunraysia region and for cotton in NSW had been offset by decreases in demand from other sectors, such as dairy, rice and other broadacre crops.
The ABARES report said changes in carryover rules would help limit price rises under a repeat of the millennium drought, with much larger volumes of water being stored between years, helping smooth fluctuations in water prices.
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