Millions for water reform to crack down on market cowboys

The Australian Competition and Consumer Commission will be charged with regulating water market conduct, and will have the power to enforce the new laws and the mandatory code of conduct for water brokers.

The changes come off the back of an ACCC report, which found no evidence of market manipulation, but noted the integrity of the market could be undermined because it lacked oversight.

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Water Minister Tanya Plibersek labelled the changes a once-in-a-generation reform that would crack down on "the cowboys of the system".

"This will make sure it's a level playing field for those doing the right thing, these reforms will deliver trust and certainty to irrigators and industry," Ms Plibersek said.

"Our investment of $31.8 million to deliver water market reform will go a long way to improve integrity, prohibit market manipulation and provide us with avenues to deal with instances of insider trading."

The integrity reforms will include prohibiting market misconduct, introducing a mandatory code for water market intermediaries, introducing mandatory rules and processes for water announcements, and broadening and strengthening price reporting obligations.

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The Australian Water Brokers Association supported the changes, because "Increased transparency and increased market confidence" benefited all water market users.

The Inspector-General of Water Compliance will receive $9.2m over four years to regulate market data, while $9.6m will go towards a road map to roll out further recommendations, including drafting legislation amendments and new laws.

The Bureau of Meteorology will receive $1 million to scope the development of a National Water Data Hub, to improve national water information for the industry with quality, timely and consistent data.