Water Minister, Penny Wong, has today announced the latest phase in the irrigation licence buyback, which she says will only involve water from willing sellers in Queensland and northern NSW.

"This tender is the first step in the Rudd’s Government’s $400 million program to purchase water entitlements in the northern section of the Murray-Darling Basin," she said.

The tender call coincides with the first day of business for the head of the new Murray-Darling Basin Authority.

Former chief executive of the South Australian Department of Water, Land and Biodiversity Conservation, Robert Freeman, starts work today as the chief executive of the independent authority.

"We are delivering on our election commitments to purchase water for the rivers and to establish a new, independent authority to manage the Murray-Darling Basin in the national interest," Sen Wong said.

"We are facing a critical situation in the Murray-Basin which is the result of years of over-allocation, drought and climate change.

"The tender being announced today will help us move towards restoring Basin rivers and wetlands to health."

With a process currently underway in some parts of Queensland to separate water entitlements from land, Sen Wong said conditional contracts would be struck as necessary with sellers ahead of that process being finalised.

* Program guidelines will be available from next Monday 15 September at www.environment.gov.au/water or by calling 1800 218 478.