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Modelling Water Reallocation from Temporary Trading in the Goulburn Systems

Erwin Weinmann Sergei Schreider Barry James Hector Malano Mark Eigenraam Mariyapillai Seker Tony Sheedy Rukman Wimalasuriya

Publication Type:

Technical Report
This is a publication of the current CRC for Catchment Hydrology

CRC Program:

Sustainable Water Allocation

Publication Keywords:

Water allocation
Water supply
Simulation models
Trading
Irrigation
Water use
Water transfer
Economics
Design calculations



Abstract / Summary:

Preface

The last decade has seen significant water reform in Australian states, in line with the Water Reform Framework established by the Council of Australian
Governments (COAG) in 1994. An important principle embodied in these reforms is the free trading of water which is expected to lead to more efficient water use but also has the potential to result in increased utilisation of limited water resources and to produce a number of third party impacts.

The state and local water authorities responsible for water resource planning and management rely on models of their complex water supply systems to guide their decisions on water allocation policies and management methods. The model used by Victorian water authorities is REALM (REsource ALlocation Model) which allows detailed simulation of the physical, operational and water allocation characteristics of urban and rural water supply systems. However, the REALM simulation package did not include the capability to model the reallocation of
water entitlements resulting from water trading, nor any means to assess the economic impacts of various allocation and water trading policies.

Project 3A - Hydrologic and economic modelling for water allocation - includes activities focussing on Victoria, New South Wales and Queensland. The
specific objective of the Victorian component of project 3A was to enhance the existing REALM modelling capabilities to allow simulation of temporary water
trading and the assessment of the direct economic impacts at the level of individual irrigation districts.

The project used the Victorian Department of Primary Industries existing DPI Regional Water Linear Programming (LP) Model to develop a water reallocation module (WRAM-R) and to incorporate this in a new integrated modelling framework called WRAM-REALM.

This report describes the features of the WRAMREALM modelling framework and demonstrates its capabilities by application to the Goulburn System. The
project outputs represent an important step towards modelling water trading and its economic impacts. The report also concludes that there is considerable scope for further improvements to this modelling approach and indicates possible directions for future work. This is an area of modelling that is critical to implementation and assessment of the new water reform agenda.

John Tisdell
Program Leader - Sustainable Water Allocation
CRC for Catchment Hydrology

This report is available for downloading below.

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technical200506.pdf

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