Natural Resources and Mines Minister Anthony Lynham said there was demand for the water from agricultural producers seeking expansion and increased value of their businesses. 

“It is proposed that the release will be at a fixed price rather than a tender process, because this will enable rapid and efficient release of water,” Dr Lynham said in a parliamentary estimates hearing. 

The water will be unallocated water from the general reserve and comes on top of water licences totalling 100 000 megalitres granted earlier this year in the Gulf water plan area.