Queensland Water Minister Craig Wallace said the changes will allow farmers to more efficiently use their water allocations.
The changes will allow NSW and Queensland irrigators to either sell or lease all or part of their water allocation across the border, while they will also be free to buy more water.
The plan covers the Queensland catchments of the Severn, Dumaresq, Macintyre, Weir, and Barwon rivers.
Previously Queensland irrigators were restricted to trading only in certain zones of their relevant river.
It is expected interstate water trading will begin west of Warwick by September.
“Water does not obey state boundaries and nor should the efficient trade in water,” Mr Wallace said.
“The amendment will not change the original water resource plan’s aim to ensure there are sufficient flows to maintain the environmental health of all these river systems.”
The new changes involved arrangements, processes and registration systems between the two states.