Summary

This project explored the interconnectedness between water market design and institutional governance goals to address water security and social equity issues related to water access. It focused on the question: How can investor confidence be enhanced through a grower-led transformation of northern Australia’s emerging water markets?

Research leads, Civic Ledger, are investigating the design of next-generation rules to manage future uncertainty and deliver water security across northern Australia. This work builds on the Improving Water Markets and Trading through New Digital Technologies  research, published in December 2020, and further explores the linkages between enabling institutions and water market design.

In parallel, Civic Ledger is testing the next-generation water market paradigm at scale by transitioning the Mareeba-Dimbulah Water Supply Scheme (MDWSS) in the Atherton Tablelands, Far North Queensland, to its blockchain-enabled water market and trading platform – Water Ledger. This transition has established MDWSS as a strategic research test-bed with applicability across northern Australia, enabling real-time, continuous water accounting and trading.  It also provides a framework to evaluate and validate the linkages between transparent governance and the design of next generation water markets.

Expected outcomes

The direct impact of this strategic investment MDWSS to Water Ledger is felt at the grower level. The indirect impact has prompted a rethinking of how water markets are designed and governed – both within Australia and globally.

The project analysed and reported on several key metrics including:

• Direct measures – market participation rates and liquidity (compared to the status quo), market value of trades (compared to the status quo), positive user sentiment toward the Water Ledger platform.
• Indirect measures – lessons learned, extension opportunities.
• Status of the outputs against the pre agreed success criteria.
• Platform adoption metrics.
• Financial metrics of the project.
• Areas for improvement and future project recommendations.
• Other business areas which may benefit from blockchain technology, such as supply chains, tropical health, and credentialing.