Unbundling water rights

unbundling_of_water_rights

South Australia, along with other States, is in the process of making changes to water licensing arrangements as part of its commitment to the National Water Initiative. In summary, the existing water licences will be separated into their main components.These are a Water Access Entitlement, a Water Allocation, a Site Use Approval, a Water Resource Works Approval and a Delivery Capacity Entitlement. 

In 2007 the Natural Resources Management (Water Resources and Other Matters) Amendment Act 2007 was proclaimed. This amended the Natural Resources Management Act 2004 to give effect to the separated scheme.

What is the effect of the changes?

These changes aim to benefit water users by making transfers easier and more efficient, expanding the choices available for water management and providing clarity for all aspects of water access entitlements.

The purpose is to create greater certainty for investors, and increase the efficiency of water markets and water use.  

Existing licence holders will continue to own a secure, personal property right in water (the new Water Access Entitlement). In fact, for most licensees, the proposed changes will make little or no significant difference. However, the changes will improve the opportunities for those who wish to participate in the water trading market, making it explicitly clear to buyers and sellers what exactly is being bought and sold.
South Australia agreed to these changes when it signed the National Water Initiative in 2004. Both Victoria and New South Wales have already met these requirements.

(Source- DWLBC)

Key external links for further information

Link icon Department for Water - Unbundling water rights