The data comes on the back of a new round of water buyback tenders called in the southern Murray Darling basin by the Federal Government last week.

South Australian-based water brokers, Waterfind, said water purchases in 2009-2010 were lower across all markets in the basin ranging from a 13 per cent reduction in Victorian Murray water, up to a 34 per cent reduction in prices paid for NSW Murray water above the Barmah choke.

Waterfind is attributing the reduction to a broader decline in water prices, especially in the Murrumbidgee and Murray water markets.

Waterfind chief executive, Tom Rooney, said in the past 10 years entitlement holders in these areas had enjoyed "record capital growth" – including as much as 60 per cent capital growth in a single year.

The Commonwealth is now the major purchaser of water in the southern Murray Darling, according to Waterfind.

Minister for Water, Penny Wong, announced the second tender round for the year last Friday, with the latest buy-up in the southern Murray Darling Basin worth $120 million.

This round of purchases follows an earlier round in January to add to the 797 gigalitres of water entitlements worth $1.3 billion which have already been secured for the environment by the Federal Government.

The third tender in the series is expected to commence in late April or early May 2010.

In the March 2010 tender, sell offers will only be accepted from the Murray, Murrumbidgee and Lower Darling catchments in NSW, the Murray, Goulburn, Campaspe and Loddon catchments in Victoria, and the South Australian portion of the Murray-Darling Basin.

Information on the average price of offers for each water entitlement type pursued in the January tender is available at www.environment.gov.au/waterpurch asing

There have been some changes to the program guidelines and application form for the second tender round.