The Australian Competition and Consumer Commission has issued its position paper seeking submissions on the development of water charge rules for irrigation infrastructure operators and bulk water operators.

The water charge rules form a key component of the Water Act 2007, which creates new institutional and governance arrangements to address the sustainability and management of water resources in the Murray-Darling Basin.

"The main objective in developing the water charge rules is to promote the economically efficient and sustainable use of water resources, the efficient use of, and investment in, water infrastructure, and to facilitate the efficient operation of water markets," ACCC chairman Graeme Samuel said.

"In developing its positions, the ACCC has also had regard to current governance and charging arrangements. With this in mind, the ACCC is proposing a tiered approach for the regulation of water charges payable to operators.

This approach balances the costs and benefits of regulation for the various types of operators."

The position paper is part of an ongoing consultation process.

Submissions to the position paper are to be provided to the ACCC by Monday, November 24.

Details on how to make a submission can be found in the position paper, which is available from the ACCC website: www.accc.gov.au

There will be further opportunity to inform the ACCC's development of water charge rules prior to preparation of final advice to the Minister. Specifically, the ACCC proposes to prepare draft rules to be released in early 2009 for further consultation.