Lachlan Valley

Lachlan Valley Water is an independent industry group funded by water licence holders in the Lachlan catchment. It is the peak regional body representing river water and groundwater users in the Lachlan Valley and has 450 members, representing all categories of licence holders. The Lachlan catchment covers an area of 84,700 km2, running from Crookwell and Gunning in the east to Oxley and Ivanhoe in the west. The Lachlan River rises near Yass and flows for approximately 1450 km to the Great Cumbung Swamp, northwest of Hay. Water from the Lachlan reaches the Murrumbidgee only in high flood years.

The graph below illustrates a comparative view of the growth trends between the Lachlan Valley water index and a National benchmark over the period.

CMGR 1.498%

CAGR 18.645%

Value of Market (as of Oct ’23) : $1.464.88 Million

The Lachlan Valley index demonstrates a remarkable ascent that outpaces the National trend, showcasing its stronger performance. Initially, both indices rise in tandem, but soon the Lachlan Valley index diverges, climbing at a faster rate, signalling a strong region-specific growth dynamic.

People looking to invest on specific regional growth trends may find the Lachlan Valley water index to be a promising addition to their portfolios. The sustained higher growth rate, compared to the National index, suggests potential for both higher short-term returns and a strong position in the market, which might appeal to growth-oriented. The graph indicates that despite the inherent market fluctuations, the Lachlan Valley index has managed to maintain its lead over the National index, enhancing its attractiveness as an investment opportunity with a track record of outper forming the broader market.

Lachlan General Security

CMGR 1.490%

CAGR 18.528%

Value of Market (as of Oct ’23): $948.5 Million

In the NSW Lachlan Valley, General Security water allocations are managed through Water Access Licences (WALs). The Lachlan Valley has 820 WALs with a total entitlement volume of 592,801.4ML, and these allocations are split into two sub-accounts: the A-sub account for the current year's water use and the B-sub account for the following year. General Security water in this region is predominantly used for lucerne, wheat, cotton, along with other agricultural purposes such as dairying, beef, canola, citrus, and vegetables.

General Security water in the Lachlan Valley grew at a similar rate as the overall Lachlan Valley. Steeper trends in growth were seen in the 2020/2021 season, which steadied themselves this year, with the water index at a staggering 361 points vs July 2015. Comparing this to the national index, there is almost 1.7x value of the Lachlan GS as compared to National index. The Lachlan GS shows a pronounced upward trend over the past 9 year period

Lachlan High Security

CMGR 1.463%

CAGR 18.171%

Value of Market (as of Oct ’23): $120,082,500

In the NSW Lachlan Valley, High Security water allocations are governed by Water Access Licences (WALs). There are 165 WALs in the Lachlan Valley with a total entitlement volume of 27,680.1ML, and any unused High Security water at the end of a water year is forfeited. This water is primarily used for various other agricultural purposes including dairying, beef, grapes, canola, citrus, and vegetables.

High Security water in the Lachlan Valley grew at a similar rate as the overall Lachlan Valley. Comparing this to the national index, there is almost 1.7x value of the Lachlan GS as compared to National index. The Lachlan GS shows a pronounced upward trend over the past 9 year period.

Lachlan Groundwater

CMGR 1.532%

CAGR 19.098%

Value of Market (as of Oct ’23): $396,292,500

In the Lower Lachlan Groundwater area, groundwater is managed through Aquifer Water Access Licences (WAL). Each share component on a WAL equals one megalitre of water and is drawn from a bore owned by the land holder. There are 88 Aquifer WALs in the Lower Lachlan area with a total water entitlement of 105,678ML. Groundwater is used to supplement surface water licenses for various agricultural purposes, including lucerne, wheat, cotton, dairying, beef, grapes, canola, citrus, and vegetables.

Lachlan Valley Groundwater shows the highest growth in the valley. Comparing this to the national index, there is almost 2x value of the Lachlan GS as compared to National index. The Lachlan groundwater shows a pronounced steady trend over the past 9 year period.