Minister for Climate Change and Water, Senator Penny Wong, said that a key obstacle to further water market reform in Australia was the considerable differences between water registers in each state and territory, and their varying capacity to inform the market and support interstate water trade.

"This initiative will develop a new National Water Market System that will deliver better, real time market information, much faster and more efficient transactions, and improved interstate trade," Sen. Wong said.

"This new system will include a common registry system or system upgrades for all jurisdictions, and a new national portal and interstate processes to speed-up cross-border water trades and cut transaction costs.

"The national portal will provide water users with ready access to a new national market information service, and state and territory-based information on things like water licenses and seasonal allocations."

The first element, the national portal, is due to be completed by April 2010.