The Commonwealth Environmental Water Holder, David Papps, says he intends to trade water in the Murray-Darling Basin for the first time in 2013-14.

The CEWH expects to use between 70 and 80 per cent of its allocation for environmental watering in the coming year, and says legal hurdles that previously prevented the Commonwealth from trading excess water have now been cleared.

Planning for the coming year also includes the largest ever delivery to wetlands in the NSW Lachlan Valley, with 75 gigalitres of Commonwealth water and 15 gigalitres of NSW state-owned water going into the Lachlan River to water the Cumbung, Moon Moon and Baconian Swamps, as well as Lake Ita and Lake Waljeers.

Mr Papps is responsible for 1,600 gigalitres of water rights that the Commonwealth has so far acquired in the Basin, 1,116 gigalitres of which was bought back from irrigators.

It's part of the Basin Plan process, which aims to restore the river system to health, while maintaining farming.

Mr Papps says the intention is to use as much of the Commonwealth's water allocations as possible, but may require less depending on weather conditions and water availability.

He says being based in Canberra is no impediment to the CEWH using its water effectively.

Organisations such as the state water agencies, the Catchment Management Authorities and local communities all work closely with the CEWH, Mr Papps says, so that the Commonwealth responds quickly and effectively to order or cancel water deliveries.

"There's a lot of local knowledge that goes into our decision-making, an awful lot of local knowledge and an awful lot of work put into this planning," he said.

"We have planned every year that we've had water, our plans are getting more sophisticated because we're getting more water.

"It is just a remarkable collaborative exercise across the whole Basin."

Later this year, the CEWH will advertise across the Basin for six Local Engagement Officers, who will be based in regional areas of the Basin.