High Quality Content by WIKIPEDIA articles! Water trading is the process of buying and selling of water access entitlements, also often called water rights. The terms of the trade can be either permanent or temporary, depending on the legal status of the water rights. Some of the western states of the United States, Chile, South Africa, Australia and Spain`s Canary Islands have water trading schemes. Some consider Australia`s to be the most sophisticated and effective in the world. Some other countries, especially in South Asia, also have informal water trading schemes. Water markets tend to be local and informal, as opposed to more formal schemes.