The Federal Government has unveiled a new $100 million tender to buy back water in western Queensland, which takes in the giant cotton-growing Cubbie Station.

The Lower Balonne Catchment has been at the heart of a long-running controversy, with Cubbie’s massive dams able to hold enough water to fill Sydney Harbour.

The property, currently in voluntary administration and up for sale, has been accused of taking too much water from the Murray-Darling Basin system.

The Queensland Government is finalising a plan for trading water rights separately from land, paving the way for the Commonwealth to buy water from willing farmers.

Federal Water Minister Penny Wong told ABC Radio’s AM program they have until the middle of next month to put in their bids.

“There has been a legal dispute in the Queensland courts about the plan that deals with water rights,” he said.

“That appears to be resolved so we are proceeding to do what we said we’d do, which is to open a water purchase tender in the Lower Balonne.

“The reason we’re doing it is because we know that the best way to improve the health of the rivers of the Murray-Darling Basin is by reducing how much water we take from them and the fastest way to do that is by purchasing water from willing sellers throughout the basin.”

Senator Wong refused to speculate on how much could be bought with $100 million, saying that would disclose the amount that the Government was prepared to pay for water.

She says it depends on the price and who wants to sell.

“Whether it is this tender or any tender across the basin, what we are trying to achieve is improving the health of the rivers of the Murray-Darling,” she said.

“We have seen the health of those rivers decline significantly and this government is about fixing that up.”

She also would not say if the Government planned to buy water from Cubbie Station – or if her department was even talking to its owners.

“That will be a matter for Cubbie and for the department in considering what water entitlements demonstrate the best return for the rivers,” she said.

“We don’t disclose any discussions that are had or not had between any particular bidder.

“Ultimately it will be a question of what is put to the Government, what is value for money and what is the best return for the rivers of the Murray-Darling.”

Senator Wong says recent rains were welcome.

“There is obviously a lot of water around at the moment and we are keen to talk to willing sellers who are prepared to sell to the Government at a price that indicates value for money for taxpayers,” she said.

Queensland Natural Resources Minister Stephen Robertson says he supports the Federal Government’s decision to buy water rights in southern Queensland.

Mr Robertson says the State Government recently brought in its own legislation to clear the way for the sale.

“We have finalised the resource operations plan for the lower Balonne that now allows those water entitlements out there to be tradeable,” he said.

“And that’s where the Commonwealth comes in with their $100 million buy-back which I certainly welcome.”