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New South Wales Water Access Licences Explained

July 12, 2023

In New South Wales, water access licences grant the licence holder the right to access and use water from rivers, lakes or groundwater sources.  But reference must also be made to the associated Conditions Statements, Works Approvals and Water Sharing Plans to get the full story.

 

What is a water access licence?

A water access licence (WAL) is a title for a water entitlement, separate from the land on which that water can be taken or used.

A WAL allows the licence holder to extract water from rivers or aquifers in accordance with the conditions of the WAL and its nominated Works Approval, if applicable.

A WAL specifies the volume of water that the license holder is entitled to extract or use from a designated water source, by reference to a share of the total available water from that source.  It also specifies the Water Sharing Plan that regulates the WAL and the Nominated Works for the WAL by reference to the Works Approval.

A separate Conditions Statement sets out further conditions or restrictions relating to the WAL, such as seasonal and other limitations on take, sustainable extraction limits and metering and reporting requirements.

In most cases, a WAL must have a Works Approval nominated in order to extract or use the water entitlement.  A nominated Works Approval authorises the use of specified works (eg. a pump located on a river or a bore) to take water under the WAL.

 

Purpose and types of WALs

WALs can be granted to accommodate different purposes. For example, a licence may be issued for town water supply, irrigation, stock and domestic use, industrial use and/or environmental water.

 

Certificates of title

The NSW Land Registry Services (NSW LRS) on behalf of the Minister administering the Water Management Act 2000 maintains a register of every water access licence in NSW (WAL Register).  The WAL Register is maintained electronically and duplicate certificates of title for each WAL are physically issued by NSW LRS to each licence holder.

The nominated Works Approval for a WAL will be shown on its certificate of title.

If a WAL is to be altered (eg. a change of location or change to Works Approval), the alteration will usually require an application to be submitted to Water NSW.

The certificate of title for a WAL must then be updated with NSW LRS if the change is approved.

Copies of the Works Approval and Conditions Statement are available on the NSW Water Register.

 

Water source and sharing plans

A WAL can be issued for different water sources such as rivers, lakes, dams and/or groundwater.  Each WAL will specify the particular water source(s) from which the licence holder may extract water.

Water sharing plans set out how water is allocated among various users.  A water sharing plan will also factor in the environmental needs of different water sources or catchments.  These plans set rules and guidelines for the issuing, trading and monitoring of WALs with a view to balance the competing interest for water extraction and protecting the long-term availability of water resources.

So, to truly understand a WAL, you must look at the WAL itself, the Conditions Statement, the Works Approval and the relevant Water Sharing Plan.

 

Trading and transferring WALs

Subject to the WAL conditions and approval processes, WALs can be traded or transferred between individuals or entities. This means licence holders may buy, sell, lease, temporarily or permanently transfer water entitlements.  The trading and transferring of WALs provides flexibility in water management and also allows for market-based allocation.  In some circumstances and with the right approval, you may be able to use your NSW water entitlement in neighbouring states (including Queensland).

It is important to note that the specific details and requirements of each WAL may vary depending on the region, water source and the particular water sharing plan in place.  For more information about WALs, please contact our agribusiness team.

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