Australia’s Murray–Darling Water Storage Falls to 67% as Irrigation Prices Rise

Water stored in Australia's Murray–Darling Basin fell by 88 gigalitres over the week to October 1, 2026, leaving major reservoirs at 67% of combined capacity. The latest weekly update from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), published October 8, puts the stored volume at 14,991 gigalitres.

The basin is central to irrigated farming in south-eastern Australia. Its water conditions affect crops, horticulture, pasture and the cost of securing supply during dry periods. The latest storage level is 589 gigalitres, or about 4%, below the same time a year earlier.

The price of irrigation water is edging higher

In the Victorian Murray below the Barmah Choke, the weekly allocation price rose from A$350 per megalitre on September 24 to A$358 per megalitre on October 1, ABARES reported. A megalitre is one million litres, a unit commonly used to price irrigation allocations.

That price comparison covers one specified trading zone and period. It should not be interpreted as a single national water price or as proof of a sustained market trend. Water prices vary sharply with location, allocation rules, crop requirements and seasonal rainfall.

The rain has not been evenly distributed

During the week ending September 30, much of Australia's cropping belt remained largely dry, while Western Australian growing regions received rainfall commonly between 5 and 25 millimetres. Some southern districts received 25 to 50 millimetres or more.

ABARES said rainfall during September was above average across much of Western Australia but below average over extensive parts of eastern and southern Australia. The south-east's comparatively dry conditions may have drawn down stored soil moisture during a period important for winter-crop growth.

What farmers and buyers should watch

The agency's forecast for the eight days to October 8 indicated 10 to 50 millimetres in parts of Victoria, South Australia and southern or central New South Wales. These were forecasts, not confirmed rainfall totals. A timely increase in soil moisture can support grain filling and pasture, but whether it arrives in a useful location and amount matters more than a national headline.

For growers, the relevant decisions are local: whether to buy more water, conserve remaining allocations, adjust planting or irrigation, and manage input costs. For commodity buyers, reduced storage is a risk signal, not a direct prediction that Australian food production will fall.

Sources and image rights

Original primary source: https://www.agriculture.gov.au/abares/products/weekly_update/weekly-update-261008

Cover image: Unsplash free-to-use crop irrigation photograph, https://unsplash.com/photos/sprinklers-spraying-water-on-a-field-of-crops-ztHHjV0t0Qw , Unsplash License.