A lower water price isn't a problem for one of the Riverina's water traders who says it will lead to more crops being planted.
For this season general security irrigators have around 30 per cent of their allocation - compared to seven and six per cent in 2018 and 2019 respectively.
Autumn rain has also seen the levels in Burrinjuck and Blowering dams increase.
It means the price of temporary water in the Murrumbidgee Valley is around $155 a megalitre - a long way from the heights of $800 a megalitre in January this year.
Wilks Water director Tom Wilks said he preferred to see a lower price for water as it meant more agricultural activity.
"It's a pretty good indicator that the market is doing what it's supposed to do," Mr Wilks said.
"When the supply does up, the price goes down and there's a price point where the demand will kick in."
Mr Wilks said the price points where demand increased were related to commodity and crop prices, but he expected more rice and cotton to be planted.
"A lower price is a good thing, it gets everyone farming," he said.
"The multiplier effect is unreal, every dollar spent by farmers becomes $5.
"It creates employment, when he's farming, a farmer spends a lot of money in the process that he hopes comes back at harvest."
Cheaper water prices means farmers will eventually begin looking to lock in lower prices for the following year either through securing permanent water licences or using leases.
"Some might buy water when it's cheaper to carryover, there's lots of things that can be done to smooth over the lumps and bumps in prices," Mr Wilks said.
"At a certain price point, it creates demand and how do you take advantage of that for next season?"
While the market is working as designed, Mr Wilks said he hoped the Australian Competition and Consumer Commission's report into Murray-Darling Basin water markets would bring more transparency.
He said the ACCC seemed to have an understanding of many of the market's facets and noted there had already been some changes as a result of the inquiry.
In NSW, zero dollar water trades now have to be justified as to whether it's to be parked for carryover, as a forward contract or a related party.
"Anything that brings greater transparency and confidence into the market is a good thing," Mr Wilks said.
Updated general security and high security water allocations will be announced on September 1.