Forwards are a way of securing a known volume of allocation, on specified dates pending the receipt of payment. The Lessor (entity providing the Forward) assumes the risk associated with seasonal determinations.


  • Forwards removes the risk associated with variable seasonal determinations
  • Forwards provide the Lessee certainty around allocation price and availability

How it works

At the simplest level, Forwards are a contract to deliver a specified volume of allocation for an agreed price at some date in the future. The Lessee only receives the allocation once they have paid.

Forwards can take several forms;

  • Intra-season – the allocation is delivered within the current season ie you can enter into an agreement of 1 September to have water delivered on 1 February
  • Inter-season – the allocation is delivered in the following season ie you can enter into an agreement on 1 May to have water delivered on 1 September in the following season
  • Mutli-season – allocation is delivered across multiple seasons

While Forwards are secured by contracts, it is essential that both the Lessor and Lessee consider the potential risks. The No 1 risk is about the reputability of the counter-party and more specifically will they honour the agreement in extreme seasons – especially for multi-season Forwards. For instance, if a Forward has been negotiated at $200 per ML, will the Lessor honour the contract if the market price for allocation is $400 per ML and likewise will the Lessee continue paying $200 per ML if the market price for allocation is only $50 per ML.


The price of Forwards are highly dependent on the prevailing market price for allocation and water availability outlook for the following season. For the latest availability see our listings.

H2OX exchange fees for Forwards are 1% per ML per annum. H2OX does not charge any additional contract or setup fees for establishing and administering leases. All water authority fees associated with transferring the allocation are paid by the Lessee.


Leasing water entitlement is another way of securing access to allocation alongside other Water Products to manage spill and supply risks.

Before you start making decisions, ensure you have all the facts by calling H2OX on 1800 988 118 to discuss the available options.