The price of temporary water in the Murrumbidgee Valley in southern NSW has increased by 30 per cent in the last week.

The increase follows on from the halt on water trades from the NSW Murray into the Murrumbidgee because of an imbalance in water storages.

Tom Rooney, CEO of water brokers Waterfind, says with cotton and rice being planted next month, demand for water in the Murrumbidgee will remain high.

"We have the Commonwealth Environmental Waterholder now owning a good proportion of the water in most valleys.

"Water which would have previously hit the market, because it would have be allocated to growers, is not hitting the market anymore because it's staying in the environmental flow.

"Also those people that sold to the Commonwealth now have extra demand in relation to providing their water supply through the temporary markets.

"So we're seeing higher prices as a result of that."

This time last year, general security irrigators in the Murrumbidgee Valley were on 64 per cent of their water allocation.

They currently have access to 33 per cent of their allocation.

 

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