Issues in defining property rights to improve Australian water markets

This article discusses the key practical issues associated with defining pr operty rights to water use, in the context of broadening the scope of the m arket for transferable water entitlements. In particular, the third party i mpacts of water trade and the need for improved water trading rules are dis cussed. Some of the issues associated with defining the reliability of wate r rights, including the design of appropriate dam management policies, are also discussed. The article concludes with some positive suggestions for th e policy debate.