The Farm Water Supplies Act 1946 creates a loan-and-advance scheme, administered by the Rural Assistance Authority, to fund water-supply works (including bores) for owners of farming lands and, in limited cases, private water corporations. It sets out how to apply, how decisions are made, repayment terms (secured by deeds, instalments up to 15 years) and enforcement, and requires certain works to have approvals under the Water Management Act 2000. It matters because it allocates cost, decision-making power and compliance obligations for on‑farm water infrastructure.
This Act creates a statutory framework by which the New South Wales Rural Assistance Authority (RAA) may provide financial assistance, in the form of advances (loans) or payments, to owners of farming lands for the carrying out of works to provide or improve water supplies. The Act defines the permitted scope of works (including bores, irrigation preparation and domestic or stock supply bores), sets the application and approval process, fixes maximum advance levels and repayment terms, and prescribes securities and enforcement mechanisms.
Mechanically, the Act does the following (selective cross-references):
Defines key terms and the classes of land and works covered (s 2).
Allocates responsibility for delivering or supervising works between the RAA and an "appropriate Authority", with the latter identified in respect of bores as the Water Administration Ministerial Corporation and otherwise the Director-General of the Department of Industry and Investment (s 2A; s 2 definitions).
Permits owners of farming lands to apply for an advance; requires an approved form and a deposit to cover investigation costs (s 3).
Enables the RAA to approve or refuse applications (s 4(1)); where approved it must give a written statement specifying the works approved and the proposed amount of the advance (s 4(2)).
Limits advances to a percentage of cost when works are performed by someone other than the appropriate Authority (up to 90 per cent of cost), and requires a minimum applicant payment where the appropriate Authority will carry out the works (s 4(2)(a), s 4(2)(b)(iii), s 7(1)).
Makes advances loans bearing interest at a rate fixed by the RAA (s 5(1)), repayable by consecutive half‑yearly instalments within a period not exceeding 15 years (s 12(2); s 16A(6)(c) for private water corporations).
Current sections
Direct links to the current provisions in Farm Water Supplies Act 1946.
(2) This Act shall commence upon a date to be appointed by the Governor and notified by proclamation published in the Gazette.
2
Definitions
2 Definitions
2 Definitions
In this Act, unless the context or subject matter otherwise indicates or requires—
Bore means any bore or well or any excavation or other work connected or proposed to be connected with sources of sub-surface water and used or proposed to be used or capable of being used to obtain supplies of sub-surface water, whether the water flows naturally at all times or has to be raised either wholly or at times by pumping or other artificial means.
Farming lands means—
(a) lands used for farming, agricultural, horticultural, viticultural, vegetable-growing, market gardening, pastoral, grazing, poultry farming, silvicultural, floricultural or piscicultural purposes, and
(b) any other lands declared by the regulations made under this Act to be farming lands for the purposes of this Act.
Owner in relation to land, includes every person who, jointly or severally, whether at law or in equity—
(a) is entitled to the land for any estate of freehold in possession, or
(b) is a person to whom the Crown has lawfully contracted to sell the land under the Crown Land Acts within the meaning of the Crown Land Management Act 2016 or any other Act relating to the alienation of lands of the Crown, or
(c) is entitled to receive, or is in receipt of, or if the land were let to a tenant would be entitled to receive, the rents and profits thereof, whether as beneficial owner, trustee, mortgagee in possession, or otherwise, or
(d) is the holder of a lease from the Crown or any statutory body representing the Crown.
Rural Assistance Authority means the New South Wales Rural Assistance Authority constituted under the Rural Assistance Act 1989.
Works means—
(a) works necessary for the provision or improvement of the water supply to farming lands for irrigation purposes, or for the preparation of farming lands for irrigation, whether or not involving the construction or improvement of a bore, or
(b) the construction or improvement of a bore for the provision or improvement of the water supply to farming lands for domestic or stock purposes.
s 2: Am 1976 No 34, Sch 6; 1980 No 196, Sch 1; 1986 No 104, Schs 1 (1), 2 (2); 1989 No 98, Sch 1; 2017 No 17, Sch 4.29.
2A
Appropriate Authority for works
2A Appropriate Authority for works
2A Appropriate Authority for works
In this Act, a reference to the appropriate Authority, in relation to any works, is a reference—
(a) to the Director-General of the Department of Industry and Investment to the extent to which the works do not involve the construction or improvement of a bore, or
(b) to the Water Administration Ministerial Corporation to the extent to which the works involve the construction or improvement of a bore.
s 2A: Ins 1986 No 104, Sch 1 (2). Am 1986 No 205, Sch 2; 2010 No 59, Sch 2.30.
3
Application for an advance
3 Application for an advance
3 Application for an advance
(1) Any owner of farming lands who desires an advance for the purpose of the carrying out of works may make an application to the Rural Assistance Authority for an advance.
(2) Such application shall be in a form approved by the Rural Assistance Authority and shall be accompanied by such deposit as the Rural Assistance Authority may require as security for the cost of the investigation in connection with such application, and such deposit may be applied by the Rural Assistance Authority in payment or part payment of the cost of such investigation.
s 3: Am 1986 No 104, Sch 1 (3).
4
Rural Assistance Authority may grant or refuse application
4 Rural Assistance Authority may grant or refuse application
4 Rural Assistance Authority may grant or refuse application
(1) Upon receipt of an application the Rural Assistance Authority shall decide whether or not an advance shall be made.
(2) Where the Rural Assistance Authority decides to make an advance it shall furnish to the applicant a statement setting out a description of the works which the Rural Assistance Authority has approved be carried out and specifying—
(a) where the works are to be carried out by any person other than the appropriate Authority—the amount proposed to be advanced, not exceeding 90 per cent of the cost of the works as estimated by the Rural Assistance Authority, or
(b) where the works are to be carried out by the appropriate Authority—
(i) the terms and conditions on which the appropriate Authority is prepared to carry out the works,
(ii) the charge which the appropriate Authority requires to be paid for the carrying out of the works by it or in the manner in which that charge is to be assessed, and
(iii) the amount, not less than 10 per cent of that charge, to be paid to the appropriate Authority under subsection (3).
(3) If, on receipt of the statement referred to in subsection (2), the applicant is desirous of obtaining the advance, the applicant shall notify the Rural Assistance Authority in a form approved by the Rural Assistance Authority, and where the applicant desires the works to be carried out by the appropriate Authority, the notification shall be accompanied by the amount set out in the statement referred to in subsection (2) to be paid to the appropriate Authority.
s 4: Am 1986 No 104, Sch 1 (4).
5
Rural Assistance Authority to make advances
5 Rural Assistance Authority to make advances
5 Rural Assistance Authority to make advances
(1) In any case where the applicant notifies the Rural Assistance Authority under section 4 (3) that the applicant desires the advance such advance shall, subject to the provisions of this Act, be made by the Rural Assistance Authority by way of loan bearing interest at such rate as may be fixed by the Rural Assistance Authority from time to time.
(2), (3) (Repealed)
s 5: Am 1986 No 104, Schs 1 (5), 2 (3); 1989 No 98, Sch 1.
6
Conditions precedent to advances
6 Conditions precedent to advances
6 Conditions precedent to advances
No advance shall be made under this Act unless the Rural Assistance Authority is satisfied—
(a) that farming operations will be carried on on the farming lands efficiently and with a reasonable prospect of success, and
(b) that the carrying out of the works in respect of such farming lands is necessary to ensure a more efficient carrying on of those operations on such lands.
s 6: Am 1986 No 104, Sch 1 (6).
7
Amount of advance where works not carried out by appropriate Authority
7 Amount of advance where works not carried out by appropriate Authority
7 Amount of advance where works not carried out by appropriate Authority
(1) The amount of an advance to be made to an owner where the works are to be carried out by any person other than the appropriate Authority shall be finally determined by the Rural Assistance Authority upon the completion of the works and shall not exceed 90 per cent of the actual cost incurred by the owner in respect of the carrying out of the works.
(2) A certificate issued by the appropriate Authority certifying—
(a) that works have been completed, and
(b) that a specified amount is the actual cost incurred by an owner in respect of the carrying out of works,
is evidence in favour of the Rural Assistance Authority of the matters certified.
s 7: Subst 1986 No 104, Sch 1 (7).
8
Payment of advance where works not carried out by appropriate Authority
8 Payment of advance where works not carried out by appropriate Authority
8 Payment of advance where works not carried out by appropriate Authority
(1) Where any works in respect of which an advance is to be made under this Act are carried out by any person, other than the appropriate Authority, such advance shall be made in such manner as the Rural Assistance Authority directs and upon the appropriate Authority notifying the Rural Assistance Authority that the works have been completed, or are partly completed, as the case may be.
(2) The appropriate Authority or the Rural Assistance Authority may, by its officers and servants, enter any land for the purpose of inspecting works referred to in subsection (1).
s 8: Am 1970 No 5, sec 5; 1986 No 104, Sch 1 (8).
9
Appropriate Authority may carry out work where advance is made
9 Appropriate Authority may carry out work where advance is made
9 Appropriate Authority may carry out work where advance is made
(1) In any case where the owner desires the appropriate Authority so to do the appropriate Authority may for or on behalf of and at the cost of the owner carry out works in respect of which an advance is to be made under this Act.
(2) Any works carried out by the appropriate Authority under this section shall be carried out on such terms and conditions, including the charge to be paid therefor or the manner in which such charge is to be assessed, as may be agreed upon by the owner and the appropriate Authority.
(3) Where the charge to be paid by the owner for any works carried out by the appropriate Authority under this section is the actual cost incurred by the appropriate Authority in carrying out the works, the amount of the actual cost shall include all proper supervision costs and overhead expenses and the notification referred to in subsection (5) shall be accepted as final and conclusive evidence of such actual cost.
(4) Where any works are carried out by the appropriate Authority under this section, the amount of the advance to be made by the Rural Assistance Authority shall be the charge agreed to be paid by the owner to the appropriate Authority for the carrying out of the works less the amount paid to the appropriate Authority by the owner under the provisions of section 4 (3).
(5) On completion of any such works carried out by the appropriate Authority notification in writing issued by the appropriate Authority setting out the amount of the charge to be paid to the appropriate Authority for the carrying out of the works shall be forwarded to the Rural Assistance Authority whereupon the amount of the advance shall be paid to the appropriate Authority by the Rural Assistance Authority and thereupon the advance shall, for the purposes of this Act, be deemed to have been made to the owner.
s 9: Am 1986 No 104, Schs 1 (9), 2 (4); 1987 No 209, Sch 14 (1); 1990 No 46, Sch 2.
10
Appropriate Authority may let machinery etc on hire
10 Appropriate Authority may let machinery etc on hire
10 Appropriate Authority may let machinery etc on hire
(1) The appropriate Authority may let on hire any machinery, plant or equipment for the purpose of the carrying out of works by an owner of farming lands.
(2) Where the appropriate Authority has let out on hire any machinery, plant or equipment for the purpose of carrying out any works in respect of which an advance is to be made under this Act, the Rural Assistance Authority shall, out of the moneys to be advanced to the owner, pay to the appropriate Authority the amount of any such hire and any such amount shall, for the purposes of this Act, be deemed to have been advanced to the owner.
s 10: Am 1986 No 104, Sch 1 (10).
11
Works of joint water supply
11 Works of joint water supply
11 Works of joint water supply
(1) The owners of two or more separate parcels of land who are desirous of having water supplied to their lands by means of a joint water supply scheme may, whether or not the whole of the works are to be constructed on the land of one owner, make an application for an advance for the carrying out of works for that purpose. The provisions of sections 3 (2) and 4 shall apply, mutatis mutandis, to and in respect of an application under this section.
(2) The amount of every advance made in pursuance of an application lodged under this section shall be repaid by the whole of the owners in such proportions as may be agreed upon between them. Notification of such proportions shall be given to the Rural Assistance Authority when giving notification in accordance with section 4 (3).
s 11: Am 1986 No 104, Schs 1 (11), 2 (5).
12
Repayment of advance secured by deed of charge
12 Repayment of advance secured by deed of charge
12 Repayment of advance secured by deed of charge
(1) The repayment of every advance made under this Act together with interest as hereinbefore provided shall be secured by a deed of charge over the farming lands of the owner in such form as may be required by the Rural Assistance Authority.
Where the advance is made to two or more owners under section 11, each owner shall execute a deed of charge to secure the repayment of the owner’s respective proportion of the amount of the advance.
(2) Such deed of charge shall, where the works are to be carried out by any person, other than the appropriate Authority, be expressed to be made between the owner of the farming lands and the Rural Assistance Authority, and where the works are to be carried out by the appropriate Authority, be expressed to be made between the owner of the farming lands, the appropriate Authority and the Rural Assistance Authority, and shall provide for the repayment of the amount advanced to such owner by consecutive half-yearly instalments within a period, not exceeding fifteen years, determined by the Rural Assistance Authority, together with interest as aforesaid on the amount owing from time to time, and shall contain—
(a) a condition to the effect that in the event of the owner failing to maintain the works in respect of which the advance is made to the satisfaction of the Rural Assistance Authority the whole of the principal and interest secured by the charge shall at the option of the Rural Assistance Authority become immediately due and payable, and
(b) such other powers, covenants, provisions, conditions and clauses as the Rural Assistance Authority determines.
(3) Where any works are to be carried out by the appropriate Authority such deed of charge shall be executed by the owner before the commencement of the construction of the works by the appropriate Authority and where any works are to be carried out by any person, other than the appropriate Authority, such deed of charge shall be executed by the owner before any advance is made to the owner.
(4) Any sum payable under a deed of charge under this section shall be paid to the Rural Assistance Authority and shall, until so paid, be and remain a charge in its favour on the land mentioned in the deed, and shall be recoverable by the Rural Assistance Authority in any court of competent jurisdiction from the owner of the land for the time being.
(5) The provisions of this section have effect despite anything contained in section 42 of the Real Property Act 1900.
s 12: Am 1986 No 104, Sch 1 (12); 2009 No 17, Sch 3.8.
13
Appropriate Authority may carry out work where advance is made
13 Appropriate Authority may carry out work where advance is made
13 Appropriate Authority may carry out work where advance is made
(1) Where the owner or occupier of any farming lands desires the appropriate Authority to carry out works and is prepared to pay in cash for the carrying out of such works, the appropriate Authority may carry out the works on such terms and conditions, including the charge to be paid therefor or the manner in which such charge is to be assessed, as may be agreed upon by the owner or occupier and the appropriate Authority.
(2) Notification in writing by the appropriate Authority certifying that a specified amount is the amount payable by the owner or occupier for any such works shall be forwarded to the owner or occupier and shall, where the charge to be paid for the works is the actual cost incurred by the appropriate Authority in carrying out the works, be accepted as final and conclusive evidence of the charge payable by the owner or occupier.
Such amount until paid shall be and remain a debt due to the appropriate Authority and if not paid in accordance with the terms and conditions agreed upon shall be recoverable by the appropriate Authority in any court of competent jurisdiction.
s 13: Am 1986 No 104, Sch 1 (13); 1987 No 209, Sch 14 (2).
14
Appropriate Authority may carry out investigations, prepare estimates etc
14 Appropriate Authority may carry out investigations, prepare estimates etc
14 Appropriate Authority may carry out investigations, prepare estimates etc
(1) The appropriate Authority may—
(a) supervise, on behalf of any owner, the carrying out of any works on any farming lands, and
(b) carry out surveys and investigations and prepare designs for and estimates of cost of any works proposed to be carried out on any farming lands.
(2) The charge to be paid to the appropriate Authority for any supervision or technical work carried out by it pursuant to the provisions of subsection (1) may—
(a) where so agreed between the owner and the appropriate Authority be paid for in cash by the owner,
(b) be the subject of an advance under and in accordance with the provisions of this Act, or
(c) be included in the amount of any advance which is made under and in accordance with the provisions of this Act for the carrying out of any works.
(3) Where the charge for any supervision or technical work carried out by the appropriate Authority under the provisions of subsection (1) is the subject of an advance under and in accordance with the provisions of this Act, or where any such charge is included in the amount of any advance being made under and in accordance with the provisions of this Act, the Rural Assistance Authority shall, out of the moneys to be advanced to the owner, pay the appropriate Authority the amount of such charge and any such amount paid by the Rural Assistance Authority to the appropriate Authority shall, for the purposes of this Act, be deemed to have been advanced to the owner.
s 14: Am 1986 No 104, Sch 1 (14).
15
Entry on land and use of materials
15 Entry on land and use of materials
15 Entry on land and use of materials
Where any works are to be carried out by the appropriate Authority under this Act the owner and the occupier of the farming lands on which the works are to be carried out shall for the purpose of enabling the appropriate Authority to carry out the said works grant to the appropriate Authority, its officers, workmen, servants, contractors or agents at all reasonable times, full and free right of ingress, egress and regress in, over or upon all or any of the farming lands and the right to the use of earth, stone, timber, gravel or sand or other materials or things dug, raised or obtained on such lands.
s 15: Am 1986 No 104, Sch 1 (15).
16
Work to be approved
16 Work to be approved
16 Work to be approved
No work that is a water management work within the meaning of the Water Management Act 2000, which is proposed to be constructed or used for the purpose of—
(a) water conservation, irrigation, water supply, or drainage, or
(b) the prevention of inundation of land and overflow of water thereon, or
(c) changing the course of a river,
shall be carried out under the provisions of this Act, unless and until the requisite approval under that Act has been obtained for the work.
s 16: Am 1986 No 104, Sch 1 (16); 2000 No 92, Sch 8.11 [1] [2].
16A
Loan to Board
16A Loan to Board
16A Loan to Board
(1) In this section—
conveying works and supply work have the meanings respectively ascribed thereto in that Act.
private water corporation means a private water corporation within the meaning of the Water Management Act 2000.
(2) A private water corporation may apply to the Rural Assistance Authority in a form approved by the Rural Assistance Authority for a loan for the purposes of—
(a) constructing, supplying or installing structures, meters or appliances forming part of a supply work or conveying works, or
(b) enlarging, modifying, repairing, operating, maintaining or renewing the supply work or conveying works.
(3) Subject to subsection (4), the Rural Assistance Authority may grant or refuse an application for a loan.
(4) A loan shall not be granted where the sum of the principal amounts owing in respect of loans made to a private water corporation under this section and the principal amount of a proposed loan under this section would exceed $10,000.
(5) Loan moneys shall not be paid to a private water corporation unless the corporation is, at the time of payment of the loan moneys, the holder of a water supply work approval under the Water Management Act 2000.
(6) A loan—
(a) shall be made by the Rural Assistance Authority,
(b) shall bear interest from the day of payment to the private water corporation of the loan moneys at the rate it would bear if it were an advance referred to in section 5 (1), and
(c) with the interest thereon, shall be payable by consecutive half-yearly instalments within such period not exceeding fifteen years as is determined by the Rural Assistance Authority.
s 16A: Ins 1973 No 62, sec 2 (a). Am 1986 No 104, Schs 1 (17), 2 (6); 1989 No 98, Sch 1; 2000 No 92, Sch 8.11 [3] [4]; 2010 No 133, Sch 3.1[1]–[4].
16B
Security for loan
16B Security for loan
16B Security for loan
A loan granted pursuant to section 16A (3) shall be advanced upon such security, and be subject to such covenants, conditions and provisions not inconsistent with section 16A, as the Rural Assistance Authority determines.
s 16B: Ins 1973 No 62, sec 2 (a). Am 1986 No 104, Schs 1 (18), 2 (7).
17
Offences
17 Offences
17 Offences
Any person—
(a) who receives any advance or loan from the Rural Assistance Authority under this Act and in any manner directly or indirectly uses the same or permits the same to be used for any purpose other than the purpose for which the advance or loan was made, or
(b) who, while any money is owing to the Rural Assistance Authority in respect of any advance or loan under this Act, without the consent of the Rural Assistance Authority removes, sells or otherwise disposes of any machinery, plant or other thing forming part of any works for the carrying out of which such advance or loan was made,
shall be liable to a penalty not exceeding 10 penalty units.
s 17: Am 1970 No 5, Sch; 1973 No 62, sec 2 (b); 1986 No 104, Sch 1 (19); 1993 No 47, Sch 1.
18
Regulations
18 Regulations
18 Regulations
(1) The Governor may make regulations not inconsistent with this Act prescribing all matters which by this Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying this Act into effect, and may by such regulations impose a penalty not exceeding 5 penalty units for any breach thereof.
(2), (3) (Repealed)
s 18: Am 1970 No 5, Sch; 1973 No 62, sec 2 (c); 1986 No 104, Sch 1 (20); 1987 No 48, Sch 32; 1993 No 47, Sch 1.
19
Recovery of penalties
19 Recovery of penalties
19 Recovery of penalties
Any penalty imposed by this Act or the regulations thereunder may be recovered in a summary manner in the Local Court.
s 19: Am 1973 No 62, sec 2 (d); 1986 No 104, Sch 2 (8); 2001 No 121, Sch 2.112; 2007 No 94, Sch 2.
20
Repeal of Act does not affect operation of savings and transitional provisions
20 Repeal of Act does not affect operation of savings and transitional provisions
20 Repeal of Act does not affect operation of savings and transitional provisions
(1) This Act may be cited as the Farm Water Supplies Act 1946.
(2) This Act shall commence upon a date to be appointed by the Governor and notified by proclamation published in the Gazette.
2 Definitions
2 Definitions
2 Definitions
In this Act, unless the context or subject matter otherwise indicates or requires—
Bore means any bore or well or any excavation or other work connected or proposed to be connected with sources of sub-surface water and used or proposed to be used or capable of being used to obtain supplies of sub-surface water, whether the water flows naturally at all times or has to be raised either wholly or at times by pumping or other artificial means.
Farming lands means—
(a) lands used for farming, agricultural, horticultural, viticultural, vegetable-growing, market gardening, pastoral, grazing, poultry farming, silvicultural, floricultural or piscicultural purposes, and
(b) any other lands declared by the regulations made under this Act to be farming lands for the purposes of this Act.
Owner in relation to land, includes every person who, jointly or severally, whether at law or in equity—
(a) is entitled to the land for any estate of freehold in possession, or
(b) is a person to whom the Crown has lawfully contracted to sell the land under the Crown Land Acts within the meaning of the Crown Land Management Act 2016 or any other Act relating to the alienation of lands of the Crown, or
(c) is entitled to receive, or is in receipt of, or if the land were let to a tenant would be entitled to receive, the rents and profits thereof, whether as beneficial owner, trustee, mortgagee in possession, or otherwise, or
(d) is the holder of a lease from the Crown or any statutory body representing the Crown.
Rural Assistance Authority means the New South Wales Rural Assistance Authority constituted under the Rural Assistance Act 1989.
Works means—
Requires repayment security in the form of a deed of charge over the farming lands (s 12(1)-(4)), and gives the RAA powers to accelerate repayment where the works are not maintained to its satisfaction (s 12(2)(a)).
Authorises the appropriate Authority to carry out works, hire plant, supervise works, provide technical services and issue certificates as to costs or completion; those certificates are prima facie evidence or conclusive for the RAA (s 9(1)-(5); s 10; s 14; s 7(2); s 13(2)).
Provides a discrete loan pathway to private water corporations (s 16A-16B), including a statutory cap on principal sums outstanding ($10,000 aggregate) and a precondition that the corporation hold a water supply work approval under the Water Management Act 2000 (s 16A(4)-(5)).
Requires that works which are "water management works" under the Water Management Act 2000 must have the requisite approvals under that Act before any work under this Act commences (s 16).
Creates criminal and regulatory offences for misuse of loan moneys or disposing of works while money is owing (penalty up to 10 penalty units, s 17), and gives the Governor power to make regulations (s 18) with modest penalty power (up to 5 penalty units), with recovery of penalties in the Local Court (s 19).
Preserves certain transitional provisions transferred from the Farm Water Supplies (Transfer of Functions) Amendment Act 1986 (s 20).
The Act therefore establishes a loan/subsidy channel tied to land-based security, administrative approvals, and the involvement (at the RAA’s discretion) of a government "appropriate Authority" in the delivery, supervision or certification of works.
The text itself does not include a parliamentary second-reading speech or explanatory memorandum in the material provided. The policy purpose implicit in the structure is to facilitate investment in farm water infrastructure by offering repayable financial assistance on secured terms, while retaining administrative control over approval, standards and delivery. The Act also creates a limited avenue for private water corporations to borrow from the RAA, subject to statutory caps and regulatory preconditions (s 16A).
Main concepts
Definitions and scope
Farming lands: broadly drawn to include a long list of agricultural uses (farming, horticulture, viticulture, market gardening, pastoral, grazing, poultry, silviculture, floriculture, pisciculture) and any other lands prescribed by regulation (s 2, definition "farming lands"). The definition therefore reaches both primary production and ancillary horticultural activities and can be expanded by regulation.
Bore: expressly includes any well or excavation associated with sub-surface water, whether flowing naturally or requiring pumping (s 2, definition "bore"). Works connected to bores are within the Act’s ambit.
Works: defined to include both provision or improvement of water supply for irrigation, preparation of land for irrigation, and construction/improvement of bores for domestic or stock purposes (s 2, definition "works"). The definition separates irrigation works from domestic/stock bores, but both are covered.
Decision-makers and delivery
Rural Assistance Authority: the statutory lender/decision-maker for advances and loans. The RAA accepts applications, requires approved forms and deposits, decides whether to grant advances, sets interest rates (s 3; s 4(1); s 5(1)), and prescribes deeds of charge and repayment terms (s 12).
Appropriate Authority: where works do not involve bores the appropriate Authority is the Director‑General of the Department of Industry and Investment, and where bores are involved it is the Water Administration Ministerial Corporation (s 2A). The appropriate Authority may carry out works for owners, supervise works, let machinery on hire, certify completion and cost, and exercise entry and use-of-materials rights (s 9-15).
Financial mechanics
Advances are loans bearing interest at rates the RAA fixes from time to time (s 5(1)). The Act sets quantitative caps and procedures:
When works are by a person other than the appropriate Authority, the RAA will advance up to 90 per cent of the actual cost as finally determined after completion (s 4(2)(a); s 7(1)).
When works are to be done by the appropriate Authority the RAA must set out terms, charges and the minimum amount the applicant must pay to the appropriate Authority, which cannot be less than 10 per cent of that charge (s 4(2)(b)(i)-(iii); s 4(3)).
Final amounts are certified by the appropriate Authority and such certificates are evidence in favour of the RAA (s 7(2); s 9(3)).
Repayment security: every advance must be secured by a deed of charge over the farming lands in a form required by the RAA, with repayment by consecutive half-yearly instalments within a period not exceeding 15 years as determined by the RAA (s 12(1)-(2)). The deed may include an acceleration mechanism if works are not maintained to RAA’s satisfaction (s 12(2)(a)) and other powers and covenants as RAA determines (s 12(2)(b)). The deed is to be executed before works commence or, where applicable, before any advance is paid (s 12(3)).
Loans to private water corporations: distinct provision (s 16A-16B). Loan applications must be in an approved form (s 16A(2)), RAA may grant or refuse (s 16A(3)), loans are limited so that principal amounts outstanding under this section do not exceed $10,000 for a private water corporation (s 16A(4)), and payment of loan moneys is conditional on the corporation holding a water supply work approval under the Water Management Act 2000 (s 16A(5)). Loan repayment mechanics mirror advances (interest, half‑yearly instalments, up to 15 years) (s 16A(6)).
Administrative controls and constraints
Investigation deposit required with application; the deposit can be applied to investigation costs (s 3(2)).
RAA must provide a statement describing works and charges (s 4(2)); the applicant must notify acceptance in an approved form and, where works by appropriate Authority are sought, accompany notification with the required deposit (s 4(3)).
Appropriate Authority’s certificates of completion and cost are evidence for the RAA (s 7(2); s 9(5); s 13(2)), which reduces evidentiary disputes between owner and RAA about costs.
Works that amount to "water management works" under the Water Management Act 2000 cannot be carried out under this Act without the requisite approval under that Act (s 16).
Enforcement and offences
Misuse of loan proceeds and unauthorised disposal of plant forming part of works while money is owing are offences punishable by up to 10 penalty units (s 17). Regulations may be made (s 18) with penalties up to 5 penalty units; penalties are recoverable summarily in the Local Court (s 19).
Transitional provision
Certain clauses from the Farm Water Supplies (Transfer of Functions) Amendment Act 1986 are preserved and treated as transferred provisions under the Interpretation Act 1987 (s 20).
These core concepts show the Act designs a loan programme controlled by the RAA, with layered administrative controls (forms, deposits, certificates, deeds of charge), and specifies the interplay with other statutory approval regimes (notably the Water Management Act 2000).
Who it affects
Primary stakeholders
Owners of farming lands: the Act is drafted for "owners" broadly defined to include freehold owners, persons contracted to buy Crown land, persons entitled to rents and profits (beneficial owner, trustee, mortgagee in possession), and Crown leaseholders (s 2, definition "owner"). These owners are the applicants for advances and are primarily affected because advances are secured against their farming land (s 12(1)).
Occupiers: where the owner or occupier desires appropriate Authority to carry out works and agrees to pay cash, the appropriate Authority may contract with the occupier; the occupier can become liable for charges certifiable by the appropriate Authority and recoverable as a debt (s 13(1)-(2)). Occupiers are therefore potentially exposed if they contract for works.
Government actors and delivery agents
Rural Assistance Authority: controls granting, terms, interest rates, security and enforcement. The RAA decides whether farming operations are carried on efficiently and whether works are necessary (s 6), sets the interest rate on advances (s 5(1)), requires deeds of charge and may include covenants (s 12).
Appropriate Authority: an administrative deliverer and certifier. For non-bore works the appropriate Authority is the Director‑General of the Department of Industry and Investment; for bores it is the Water Administration Ministerial Corporation (s 2A). The appropriate Authority may carry out works, charge for supervision and technical work, let machinery on hire, and certify completion and costs that the RAA will accept (s 9-15).
Private contractors and suppliers
Contractors and suppliers engaged by owners to carry out works: the RAA will make advances where works are carried out by persons other than the appropriate Authority, and final advance amounts are based on actual cost as determined on completion (s 7(1)). Contractors are therefore indirect beneficiaries from increased work demand; they are also affected because the appropriate Authority or RAA may inspect works and require certification (s 8(2); s 7(2)).
Private water corporations
Entities defined in the Water Management Act 2000 as private water corporations can apply for loans under s 16A. They are affected by the statutory $10,000 cap on total principal outstanding under this section and must hold a water supply work approval to receive loan moneys (s 16A(4)-(5)).
Affected property interests and future purchasers
Land purchasers and mortgagees: because every advance is secured by a deed of charge over the farming lands (s 12(1)) and the Act states that those provisions prevail despite section 42 of the Real Property Act 1900 (s 12(5)), the RAA’s charge is a substantive encumbrance on the land until discharged. Prospective purchasers and financiers must account for existing deeds of charge and any acceleration events triggered under s 12(2)(a).
Regulators under other statutes
Water Management regulators: s 16 places an explicit precondition that any work which is a "water management work" as defined in the Water Management Act 2000 cannot be carried out under this Act until the requisite approval under that Act has been obtained. That brings in the permitting and compliance responsibilities of the water management regime as preconditions to assistance under this Act.
Individuals facing criminal liability
Borrowers who misapply loan moneys or who remove, sell or dispose of machinery, plant or other things forming part of the works while money is owing without RAA consent commit offences punishable by up to 10 penalty units (s 17).
Other affected groups
The appropriate Authority’s workforce and contractors because the Act authorises entry onto private lands, use of materials from the land, and supervision or inspection powers (s 8(2); s 15). Owners and occupiers must grant ingress and egress and allow use of materials when appropriate Authority carries out works (s 15).
In short, the Act affects land-holding farmers and occupiers, the RAA and the identified appropriate Authorities, private water corporations with limited borrowing access, contractors who implement works, and those acquiring or financing land subject to an RAA charge.
Key duties and rights
Duties of the Rural Assistance Authority
Discretion to approve or refuse advances: the RAA must decide whether to make an advance upon receipt of an application (s 4(1)). The statute does not describe a detailed merits test beyond the conditions precedent in s 6, but the RAA controls the process, approved forms and required deposits (s 3, s 4).
Obligation to issue a statement where it approves: if it decides to make an advance it must furnish a statement describing the approved works and specifying the amount proposed to be advanced and, where relevant, the terms for the appropriate Authority carrying out the works (s 4(2)).
Lender obligations: make the approved advance as a loan bearing interest at the rate fixed by the RAA (s 5(1)). Pay the appropriate Authority from loan moneys where relevant (s 9(5); s 10(2); s 14(3)).
Security documentation: require execution of a deed of charge in a form it requires, enforceable as a charge on the land and recoverable as a debt in court (s 12(1), (4)).
Duties of owners/applicants
Application formalities: apply in an approved form and provide an investigation deposit; cooperate with inspections (s 3(1)-(2); s 8(2)).
Accept terms in approved form: notify the RAA in an approved form if they desire an advance and, where works are to be carried out by the appropriate Authority, accompany notification with the specified amount required to be paid to the appropriate Authority (s 4(3)).
Execute the deed of charge: execute the deed before commencement of works carried out by the appropriate Authority or before advance is made where works are by others (s 12(3)).
Repayment: repay principal and interest by consecutive half‑yearly instalments within a period not exceeding 15 years, in accordance with the deed of charge (s 12(2)).
Maintenance obligation: maintain the works to the satisfaction of the RAA; failure to do so may trigger acceleration of the debt (s 12(2)(a)).
Use of funds: use advances only for the purpose for which the advance was made; misuse attracts criminal liability (s 17(a)).
Preserve works: not remove, sell or otherwise dispose of plant or machinery forming part of the works while money is owing without RAA consent (s 17(b)).
Rights of owners/applicants
Choice of contractor: owners may choose to have the works carried out by persons other than the appropriate Authority (s 4(2)(a); s 7).
Right to hire or contract with the appropriate Authority: owners may seek to have the appropriate Authority carry out or supervise works, subject to agreed terms and charges and deposits (s 9(1)-(2); s 14).
Access to a stated advance: where approved, the RAA must advance the loan per the approved statement and pay the appropriate Authority as required, or pay the owner consistent with the Act’s payment provisions (s 4; s 8; s 9).
Evidentiary protection: the owner benefits from the appropriate Authority issuing certificates of completion and cost which the RAA accepts as final for advance calculation, simplifying settlement of final payments (s 7(2); s 9(5)).
Powers and duties of the appropriate Authority
Carry out works on behalf of owner at owner’s cost and on agreed terms (s 9(1)-(2); s 13(1)).
Supervise works, carry out surveys and prepare designs and estimates; charge for supervision or technical work, with those charges payable in cash, as an advance under the Act, or included in the amount advanced (s 14(1)-(3)).
Let machinery on hire (s 10(1)) and receive payments for hire from RAA out of loan moneys where appropriate (s 10(2)).
Enter land for inspections and use materials on the land where works are carried out by the appropriate Authority, subject to owner and occupier granting ingress, egress and use-of-materials rights (s 8(2); s 15).
Issue notifications certifying the amount charged for works; where charge equals actual cost, the notification is final and conclusive evidence of cost (s 9(3)-(5); s 13(2)).
Regulatory and enforcement rights and duties
The Governor may make regulations for carrying the Act into effect including penalties not exceeding 5 penalty units (s 18(1)).
The RAA may recover sums payable under a deed of charge in any competent court, and penalties under the Act or regulations may be recovered summarily in the Local Court (s 12(4); s 19).
Criminal duties/limits on behaviour
Persons who use advances for unintended purposes, or who remove/sell/dispose of machinery or plant forming part of works while money is owing without RAA consent, are liable to a penalty not exceeding 10 penalty units (s 17).
In sum, the statutory scheme places primary administrative and enforcement duties on the RAA and the appropriate Authority while imposing formal application, security and maintenance duties on owners; it balances owner choice in delivery with administrative control over finance, approval and maintenance.
Penalties and enforcement
Statutory offences and maximum penalties
Two classes of criminal offences are set out in the Act:
Misapplication of advance moneys: any person who receives an advance or loan under the Act and directly or indirectly uses or permits it to be used for any purpose other than that for which the advance or loan was made commits an offence (s 17(a)). Maximum penalty: 10 penalty units (s 17).
Unauthorised disposal of plant/works while money owed: any person who, while any money is owing to the RAA in respect of an advance or loan, removes, sells or otherwise disposes of machinery, plant or other item forming part of the works for which the advance or loan was made, without the RAA’s consent commits an offence (s 17(b)). Maximum penalty: 10 penalty units (s 17).
Regulations may carry less severe penalties: the Governor may make regulations and may impose penalties not exceeding 5 penalty units for breaches of such regulations (s 18(1)).
Enforcement mechanisms
Recovery of sums: Any sum payable under a deed of charge is payable to the RAA and remains a charge on the land until payment; it is recoverable by the RAA in any court of competent jurisdiction from the owner for the time being (s 12(4)). This provides both a civil enforcement remedy (debt recovery, mortgage/charge enforcement) and a security interest against land.
Acceleration clause: the deed of charge must include a condition that if the owner fails to maintain the works to the RAA's satisfaction the whole of the principal and interest secured by the charge may, at the option of the RAA, become immediately due and payable (s 12(2)(a)). This gives the RAA a contractual acceleration mechanism enforceable through civil process.
Evidentiary certificates: certificates issued by the appropriate Authority certifying completion and actual cost are evidence in favour of the RAA (s 7(2)); where the charge equals the actual cost, the appropriate Authority’s notification is to be accepted as final and conclusive evidence of such actual cost (s 9(3)). This evidentiary position streamlines enforcement of payment obligations by limiting factual disputes about cost and completion.
Debt recovery in courts: sums not paid may be recovered by the RAA in a court of competent jurisdiction as a debt; penalties may be recovered summarily in the Local Court (s 12(4); s 19).
Entry and inspection: the appropriate Authority or the RAA may enter any land by its officers and servants to inspect works (s 8(2)), supporting enforcement and supervision of compliance.
Regulatory oversight tied to other approvals: s 16 bars construction or use of any water management work (as defined in the Water Management Act 2000) under this Act unless the requisite approval under that Act has been obtained. Non-compliance with regulatory preconditions may expose applicants to enforcement under the Water Management Act, in addition to limitations on assistance under this Act.
Practical enforcement dynamics and constraints
Penalty units: the Act sets penalties in terms of penalty units rather than fixed dollar amounts (s 17; s 18). The monetary value of a penalty unit is set elsewhere and can change; compliance and enforcement calculations therefore require reference to the current statutory value of a penalty unit at enforcement time.
Civil remedies take precedence for recovery of debts: the principal legal lever is the deed of charge and civil recovery; criminal penalties appear aimed at deliberate misapplication or disposals undermining the RAA’s security.
RAA discretion: the RAA’s ability to accept the appropriate Authority’s certificates as conclusive (s 9(5)) and to accelerate repayment (s 12(2)(a)) concentrates enforcement discretion in the RAA. The Act does not set appeal procedures or administrative review in its text, so enforcement actions are likely to be contested in courts or by whatever administrative review processes the RAA provides (if any).
Interplay with other enforcement regimes
Because works that are "water management works" under the Water Management Act 2000 must have the requisite approvals under that Act (s 16), non-compliance may attract sanctions under the Water Management Act as a separate enforcement pathway. The Act thus ties financial assistance to compliance with the broader water regulatory regime.
Overall, the enforcement architecture combines secured civil remedies (deed of charge and court recovery), administrative control (certificates and acceleration), and modest criminal penalties to deter misuse and unauthorised disposals, with the RAA and appropriate Authority positioned as primary enforcers.
How it interacts with other laws
Statutory cross-references within the Act
Water Management Act 2000: s 16 expressly prevents any work that is a "water management work" (within the meaning of the Water Management Act 2000) from being carried out under this Act unless the requisite approval under the Water Management Act has been obtained. The Act therefore conditions access to financial assistance on compliance with the water management approvals regime and integrates the two regulatory pathways.
Real Property Act 1900: s 12(5) states that the provisions of s 12 (deed of charge and related security) have effect despite anything contained in s 42 of the Real Property Act 1900. That textual override indicates that the RAA’s charge is intended to operate robustly against competing property registration or priority rules referenced in the Real Property Act.
Crown Land Management Act 2016: the definition of "owner" in s 2 refers to persons to whom the Crown has lawfully contracted to sell land under the Crown Land Acts within the meaning of the Crown Land Management Act 2016. Thus the Act applies to certain Crown land transactions as well as private freehold interests.
Rural Assistance Act 1989: the RAA is defined as the New South Wales Rural Assistance Authority constituted under that Act (s 2, definition "Rural Assistance Authority"). The RAA’s institutional and governance settings will therefore be subject to the enabling statute of that body, which determines its powers, financial limits and administrative procedures beyond the Farm Water Supplies Act’s specific provisions.
Interpretation Act 1987: s 20 declares certain transferred provisions from an earlier amendment act are transferred provisions to which s 30A of the Interpretation Act 1987 applies. This is an internal statutory drafting device preserving savings or transitional arrangements with interpretative effect under the Interpretation Act.
Operational interactions and compliance overlaps
Approvals regime linkage: owners seeking assistance must ensure that any work classified as a "water management work" has the requisite Water Management Act approval before the works may be carried out under this Act (s 16). This implies coordination between water approvals, environmental compliance, and RAA application timetables.
Private water corporations and the Water Management Act: s 16A(5) conditions loan payment to a private water corporation on the corporation being the holder of a water supply work approval under the Water Management Act 2000. This alignment means private water corporations must satisfy the separate regulatory approval before receiving financial assistance.
Land security and property law: the deed of charge required by s 12 will interact with real property registration and conveyancing practices. The Act’s statement that s 12 has effect despite s 42 of the Real Property Act suggests priority or registration implications that practitioners must reconcile with land titles practice; conveyancers will need to verify the presence and effect of RAA charges on title.
Recovery and court process: s 12(4) and s 19 provide for civil recovery of sums due under the deed and summary recovery of penalties in the Local Court. Those recovery processes will interact with jurisdictional and procedural rules across New South Wales courts.
Administrative law considerations
Discretionary decisions by the RAA (grant/refuse, interest rate settings, acceptance of deeds, determination of satisfactory maintenance) are administrative actions that may be subject to judicial review principles, although the Act does not specify internal review channels. Practitioners should note that statutory discretion exercised under this Act could attract administrative law challenges on conventional grounds (procedural fairness, reasonableness), but the Act itself sets no specialist review mechanism.
Regulatory overlaps and sequencing risks
The statutory requirement in s 16 creates sequencing constraints: obtaining Water Management Act approvals can be time‑consuming; owners must plan for parallel regulatory processes before works commence under the Farm Water Supplies Act. Failure to secure requisite approvals may delay or preclude funding or work commencement.
The Act’s evidentiary preference for appropriate Authority certificates (s 7(2); s 9(5); s 13(2)) reduces factual disputes vis‑à‑vis costs and completion but means that disputes over whether a certificate was properly issued are likely to draw in the law relating to administrative decision validity and the procedural framework of the appropriate Authority.
In short, the Act is not a standalone financing statute; it is designed to work in conjunction with the Water Management Act 2000, the Real Property Act 1900 (notwithstanding the override provision), the Crown Land Management Act 2016 and the RAA’s constituting statute, thereby creating multiple points where statutory regimes must be reconciled in practice.
Amendment history
The Act’s marginal notes and section notes in the provided text record multiple historical amendments and insertions. The enacted text includes marginal notes indicating the following recorded legislative changes. The following summary is strictly drawn from those annotations.
Key insertions and amendments shown in the text
s 2 (Definitions): annotated with amendment citations: Am 1976 No 34, Sch 6; 1980 No 196, Sch 1; 1986 No 104, Schs 1 (1), 2 (2); 1989 No 98, Sch 1; 2017 No 17, Sch 4.29. That indicates successive modifications to definitions, including likely expansions or refinements to the definitions of bore, farming lands, owner and works over time.
s 2A (Appropriate Authority for works): inserted in 1986 (Ins 1986 No 104, Sch 1 (2)) and subsequently amended: Am 1986 No 205, Sch 2; 2010 No 59, Sch 2.30. The creation and later amendments of s 2A reflect deliberate statutory clarification of which agency is the appropriate Authority for different classes of works (bores versus non‑bore works).
s 3 (Application for an advance): has an amendment note: Am 1986 No 104, Sch 1 (3).
s 4: Amended in 1986 No 104, Sch 1 (4) indicating revision of the approval/notification process.
s 5: Am 1986 No 104, Schs 1 (5), 2 (3); 1989 No 98, Sch 1, with repeals of subsections (2) and (3). The footnote indicates earlier versions contained more detailed or different provisions which were altered or removed.
s 6: Am 1986 No 104, Sch 1 (6) , the conditions precedent were updated.
s 7: Substituted by 1986 No 104, Sch 1 (7) , suggests a substantial rewrite of the mechanics of finalising advances where works are not carried out by the appropriate Authority.
s 8: Amended 1970 No 5, sec 5; 1986 No 104, Sch 1 (8) , affects payment and inspection rights.
s 9: Amended 1986 No 104, Schs 1 (9), 2 (4); 1987 No 209, Sch 14 (1); 1990 No 46, Sch 2 , multiple changes to the clauses allowing the appropriate Authority to carry out works and on what evidentiary basis.
s 10: Am 1986 No 104, Sch 1 (10) , letting machinery on hire.
s 11: Am 1986 No 104, Schs 1 (11), 2 (5) , adjustments to joint water supply provisions.
s 12: Am 1986 No 104, Sch 1 (12); 2009 No 17, Sch 3.8 , updates to deeds of charge and security provisions, with the 2009 amendment being the most recent cited for s 12.
s 13: Amended 1986 No 104, Sch 1 (13); 1987 No 209, Sch 14 (2).
s 14: Am 1986 No 104, Sch 1 (14).
s 15: Am 1986 No 104, Sch 1 (15).
s 16: Am 1986 No 104, Sch 1 (16); 2000 No 92, Sch 8.11 [1] [2] , the 2000 Amendment correlates with the enactment of the Water Management Act 2000 and the addition of the cross‑reference and the approval precondition for "water management works."
ss 16A-16B: Inserted in 1973 No 62, sec 2 (a) and subsequently amended across a series of statutes (see s 16A notes: Am 1986 No 104, Schs 1 (17), 2 (6); 1989 No 98, Sch 1; 2000 No 92, Sch 8.11 [3] [4]; 2010 No 133, Sch 3.1[1]-[4]). The multiple amendments reflect evolving policy on loans to private water corporations and the imposition of the $10,000 cap and other preconditions.
s 16B: Ins 1973 No 62, sec 2 (a). Amended 1986 No 104, Schs 1 (18), 2 (7).
s 17: Am 1970 No 5, Sch; 1973 No 62, sec 2 (b); 1986 No 104, Sch 1 (19); 1993 No 47, Sch 1 , indicating modifications to the offence provisions over several decades.
s 18: Am 1970 No 5, Sch; 1973 No 62, sec 2 (c); 1986 No 104, Sch 1 (20); 1987 No 48, Sch 32; 1993 No 47, Sch 1.
s 19: Am 1973 No 62, sec 2 (d); 1986 No 104, Sch 2 (8); 2001 No 121, Sch 2.112; 2007 No 94, Sch 2.
s 20: Inserted 2007 No 82, Sch 4.3, preserving certain transitional provisions from an earlier Amendment Act.
Interpretation of amendment notes
The marginal notes suggest the Act has been periodically modernised, including a significant suite of changes in 1986 (the Farm Water Supplies (Transfer of Functions) Amendment Act 1986 appears central to many insertions and substitutions) and further adjustments aligning the Act with the Water Management Act 2000 in 2000. The 2009 and 2010 entries indicate later technical amendments (for example to s 12 and s 16A).
Several subsections were repealed over time (s 5 had subsections 2 and 3 repealed), and certain provisions were substituted rather than merely amended (s 7 substituted 1986). The insertion of s 2A in 1986 formalised the "appropriate Authority" concept, which is significant for the division of operational labour between RAA and government agencies.
Limitations of this amendment history
The marginal notes in the provided text give amendment citations only; they do not provide the content of earlier versions or the legislative policy debates that motivated changes. The notes establish that the Act has been subject to repeated legislative revision but do not, in themselves, reveal the substantive policy rationales behind each amendment.
Practitioners should consult consolidated versions and the Parliamentary Records for full amendment texts and consult the statutes cited in the marginal notes to trace precise textual changes and policy drivers.
Litigation history
The provided text of the Act contains no case citations, oppositions, or judicial decisions. It does not list or summarise any judicial interpretation or litigation history. The statute’s marginal notes record amendments but do not record any reported litigation affecting interpretation or enforcement.
What practitioners should note when searching for litigation:
Because the Act vests discretion in the Rural Assistance Authority (approving advances, setting interest rates, determining maintenance sufficiency for acceleration) and the appropriate Authority (certifying costs and completion), disputes that might arise and produce litigation include:
Challenges to the RAA’s grant/refusal decisions, which in an administrative law context could involve judicial review grounds (procedural fairness, error of law, unreasonableness). The Act itself does not supply internal appeals or review procedures.
Disputes about whether works were maintained "to the satisfaction of the Rural Assistance Authority" and whether acceleration of repayment was justified under s 12(2)(a).
Claims about the validity, scope or priority of the deed of charge, including interaction with Real Property Act 1900 priorities; s 12(5) indicates the section is intended to operate despite s 42 of the Real Property Act, which suggests registration/priority questions could be litigated.
Challenges to the appropriate Authority’s certifications of completion or cost, where those certificates are treated as "final and conclusive" in particular circumstances (s 9(3), s 9(5), s 13(2)). Litigation could focus on whether a certificate was validly issued or procured by fraud or bad faith.
Criminal prosecutions under s 17 for misuse of funds or unauthorised disposal of works while money is owing.
Absence of reported cases in the Act text
The absence of cases in the Act text does not mean there have been no judicial decisions applying or construing it. To identify litigation, practitioners must search New South Wales case law databases, Local Court records (for summary penalties), and higher courts for reported decisions relating to the Act. Relevant searches should include the RAA as a party, references to deeds of charge under the Farm Water Supplies Act, and disputes involving the appropriate Authority’s certifications.
Recommended practical steps for practitioners seeking litigation history
Search New South Wales consolidated legislation annotations and case citators for entries under the Farm Water Supplies Act 1946.
Search decisions naming the Rural Assistance Authority or referencing deeds of charge or acceleration under s 12, and appeals or judicial review of RAA decisions.
Inspect Local Court records for summary prosecutions under s 17 where penalty units were imposed; Local Court judgments may be unreported but precedential for enforcement practice.
In short, the statutory material supplied contains no litigation history; identifying judicial treatment requires independent case-law research focused on administrative decisions, debt and charge enforcement, and prosecutions under the Act.
Gotchas
Execution timing of deeds of charge
The statute requires that the deed of charge be executed before the commencement of construction of works by the appropriate Authority and, where works are to be carried out by persons other than the appropriate Authority, executed before any advance is made (s 12(3)). Practically this means owners cannot rely on receiving funds or having works start before a legally effective charge is in place. Failure to execute the deed at the required time may vitiate the security arrangement and jeopardise the advance.
90 per cent cap and owner exposure
Where works are carried out by a person other than the appropriate Authority, the advance is finally determined after completion and "shall not exceed 90 per cent of the actual cost incurred" (s 7(1)). Owners therefore bear at least 10 per cent (and likely any cost overruns beyond the RAA’s estimate). Applicants should plan for contingency funds and understand that the final advance is based on actual costs as certified.
Minimum applicant payment for appropriate Authority works
If the appropriate Authority carries out the works the statement must specify the amount to be paid to the appropriate Authority, and the amount must not be less than 10 per cent of that charge (s 4(2)(b)(iii)). The owner must pay that amount when notifying the RAA to accept the advance if they desire the appropriate Authority to perform the work (s 4(3)). Owners expecting full public funding should note they will be required to contribute a minimum proportion up-front.
Conclusive certificates and limited avenues to contest
The Act provides that a certificate from the appropriate Authority certifying completion and cost is evidence in favour of the RAA (s 7(2)) and that, where the charge is the actual cost incurred, notification by the appropriate Authority shall be "accepted as final and conclusive evidence" of such actual cost (s 9(3), s 9(5); s 13(2) for cash works). This can limit owners’ ability to dispute final cost calculations before the RAA unless they can challenge the certificate’s validity (fraud, jurisdictional error) in court.
Maintenance-triggered acceleration
The deed of charge must include a condition allowing the RAA to demand immediate repayment if the owner fails to maintain the works to the RAA’s satisfaction (s 12(2)(a)). "Satisfaction" is an administrative standard; owners should be aware that maintenance disputes can result in acceleration of the debt and consequent enforcement action.
Entry and use of materials
Owners give the appropriate Authority ingress, egress and the right to use earth, stone, timber, gravel, sand and other materials on the land to carry out works (s 15). Owners must consider the potential impact on their land use and any restoration obligations. There is limited statutory prescription of compensation or conditions for use-of-materials in the Act.
Investigation deposit and risk of loss
An application must be accompanied by such deposit as the RAA may require as security for the cost of investigation, and the RAA may apply the deposit in payment or part payment of the investigation costs (s 3(2)). Applicants risk losing this deposit if the investigation costs exceed the deposit or if the RAA applies it to costs; ensure clarity on likely investigation fees in advance.
Interplay with Water Management approvals
The Act requires that any "water management work" (as defined in the Water Management Act 2000) must have the requisite approval before it can be carried out under this Act (s 16). Failure to secure those approvals prior to commencing works under this Act will prevent funding and can expose applicants to separate water law enforcement.
Private water corporation cap and pre‑conditions
Loans to private water corporations are capped so the sum of principal amounts outstanding for a corporation under s 16A must not exceed $10,000 (s 16A(4)). Additionally, loan moneys will not be paid unless the corporation holds a water supply work approval under the Water Management Act 2000 (s 16A(5)). For organisations expecting larger investment, this cap is an immediate limiting factor.
Evidentiary and enforcement tilt towards government authorities
The Act gives deference to government bodies: RAA discretion (grant/refuse, interest rates, terms of deed), appropriate Authority certificates being final evidence, and the RAA’s right to payment from advances for hire or supervision charges due to the appropriate Authority (s 5(1); s 7(2); s 9(3)-(5); s 10(2); s 14(3)). Owners should plan transactions understanding that the statutory framework is structured to favour administrative certainty for government bodies.
Penalty units and recovery procedure
Penalties are expressed in penalty units (s 17; s 18), whose monetary value can change and is set elsewhere. Penalties are recoverable in the Local Court (s 19). Practitioners need to check the current value of a penalty unit at the relevant time and consider the summary nature of penalty enforcement.
Deed content is discretionary
The deed of charge must include "such other powers, covenants, provisions, conditions and clauses as the Rural Assistance Authority determines" (s 12(2)(b)). This open-ended wording permits the RAA to impose bespoke or potentially onerous conditions; applicants should negotiate content early in the process.
Limited recorded dispute resolution mechanisms
The Act provides no express internal review or appeal mechanism for RAA decisions in its text. Administrative decision-making may therefore be contested through judicial review or contractual remedies rather than statutory appeals, which can increase the litigation and administrative burden on unsuccessful applicants.
Taken together, these "gotchas" concentrate uncertainty on timing, required up‑front payments and deposits, evidentiary finality for government certificates, and the discretion of the RAA to dictate security terms and accelerate repayment. Practitioners should structure applications with these constraints in mind.
How to comply
Checklist and procedural steps
Confirm eligibility and scope:
Verify the land is "farming lands" as defined (s 2) or is prescribed by regulation as such. Confirm the proposed works fall within the Act’s definition of "works" (s 2).
If works involve bores, note the different operational agency (s 2A) and the definition of "bore" (s 2).
Regulatory preconditions:
Determine whether any proposed work is a "water management work" under the Water Management Act 2000. If so, obtain the requisite approval under that Act before proceeding under this Act (s 16).
For private water corporations, ensure you hold a water supply work approval under the Water Management Act before expecting loan moneys to be paid (s 16A(5)).
Prepare the application:
Complete the application in the form approved by the RAA (s 3(1)).
Provide the deposit for investigation required by the RAA; be aware that this deposit may be applied to investigation costs (s 3(2)).
Await the RAA decision and statement:
If the RAA decides to make an advance it will issue a statement describing the approved works and specifying the proposed advance and, where appropriate Authority is to perform the works, the terms and minimum amount the applicant must pay (s 4(2)). Do not proceed until you have this statement.
Accept the offer formally:
If you accept, notify the RAA in the approved form (s 4(3)). If you want the appropriate Authority to carry out the works you must accompany notification with the amount set out in the RAA’s statement to be paid to the appropriate Authority (s 4(3)).
Execute deed of charge and security:
Execute the deed of charge in the form required by the RAA before any advance is made or, where the appropriate Authority will carry out works, before construction commences (s 12(3)). Ensure the deed’s covenants are understood, including any maintenance obligations and acceleration clauses (s 12(2)(a)-(b)).
If works are being undertaken by multiple owners under a joint water supply scheme, ensure each owner executes a deed securing their respective proportion (s 11(2); s 12(1)).
Contracting and delivery choices:
Decide whether to engage private contractors or have the appropriate Authority carry out works. If you choose the appropriate Authority, negotiate terms and confirm the minimum payment requirement (s 4(2)(b)(i)-(iii); s 9(2); s 13(1)).
If using the appropriate Authority’s machinery or supervision, be aware that hire and supervision charges can be included in the advance and the RAA will pay the appropriate Authority from the loan moneys (s 10(2); s 14(3)).
Record-keeping and evidence:
Keep clear records proving that loan moneys were used for the approved purpose, as misuse is an offence (s 17(a)).
Understand that certificates issued by the appropriate Authority certifying completion and actual cost are evidence in favour of the RAA and in some cases final and conclusive (s 7(2); s 9(5); s 13(2)). Ensure the appropriate Authority’s certification process is transparent and that you retain documents supporting cost claims.
Inspections and site access:
Provide the appropriate Authority and RAA with reasonable access for inspection (s 8(2); s 15). If the appropriate Authority is doing the works, grant its personnel ingress, egress and use-of-materials rights (s 15).
Repayment planning:
Prepare for repayment by consecutive half‑yearly instalments within a period not exceeding 15 years as determined by the RAA (s 12(2); s 16A(6)(c)). Obtain the RAA’s repayment schedule in writing and model cash-flow to meet half‑yearly instalments.
Maintenance obligations:
Maintain the works to the satisfaction of the RAA to avoid acceleration of the debt under the deed of charge (s 12(2)(a)). Obtain documented maintenance standards and inspection protocols where possible.
Regulatory compliance and coordination:
Coordinate project timelines with any Water Management Act approvals to avoid funding delays under s 16. If works require environmental or planning approvals, secure those consents in parallel.
Avoid prohibited conduct:
Do not use the advance for purposes other than those approved (s 17(a)). Do not remove, sell or dispose of machinery, plant or other items forming part of the works while money is owing, without RAA consent (s 17(b)).
Legal and conveyancing checks:
Before executing the deed of charge, have conveyancers or land lawyers confirm the effect on title and priorities, especially given s 12(5)’s statement that s 12 operates despite anything in s 42 of the Real Property Act 1900. Ensure lenders or prospective purchasers are aware of the charge.
For private water corporations:
Confirm aggregate outstanding principal under s 16A will not exceed $10,000 with the proposed loan; if it would, the RAA must refuse (s 16A(4)). Ensure you hold the required approvals under the Water Management Act before payment (s 16A(5)).
Practical tips
Seek pre-application engagement with the RAA to understand likely deposit, investigation fees and the RAA’s documentation requirements.
Obtain written estimates and, if engaging private contractors, ensure contract terms anticipate RAA inspection and certification processes so cost evidence will be acceptable under s 7(2).
If contemplating the appropriate Authority performing works, seek early clarity on how the appropriate Authority calculates "actual cost" and overhead components (s 9(3)). Where possible, obtain a written schedule of charges and the basis of overhead/supervision apportionment.
Budget conservatively for the owner’s minimum contributions and for at least 10 per cent of total cost in cases where the RAA advances up to 90 per cent (s 7(1)).
Maintain contemporaneous records that trace expenditure to the specific approved purposes to reduce risk of alleged misuse and penalty exposure.
Adhering to these steps minimises administrative delays, reduces the risk of enforcement action, and aligns project timing with regulatory approvals required under the Water Management Act 2000.
Section 5Rural Assistance Authority to make advances
(a) works necessary for the provision or improvement of the water supply to farming lands for irrigation purposes, or for the preparation of farming lands for irrigation, whether or not involving the construction or improvement of a bore, or
(b) the construction or improvement of a bore for the provision or improvement of the water supply to farming lands for domestic or stock purposes.
s 2: Am 1976 No 34, Sch 6; 1980 No 196, Sch 1; 1986 No 104, Schs 1 (1), 2 (2); 1989 No 98, Sch 1; 2017 No 17, Sch 4.29.
2A Appropriate Authority for works
2A Appropriate Authority for works
2A Appropriate Authority for works
In this Act, a reference to the appropriate Authority, in relation to any works, is a reference—
(a) to the Director-General of the Department of Industry and Investment to the extent to which the works do not involve the construction or improvement of a bore, or
(b) to the Water Administration Ministerial Corporation to the extent to which the works involve the construction or improvement of a bore.
s 2A: Ins 1986 No 104, Sch 1 (2). Am 1986 No 205, Sch 2; 2010 No 59, Sch 2.30.
3 Application for an advance
3 Application for an advance
3 Application for an advance
(1) Any owner of farming lands who desires an advance for the purpose of the carrying out of works may make an application to the Rural Assistance Authority for an advance.
(2) Such application shall be in a form approved by the Rural Assistance Authority and shall be accompanied by such deposit as the Rural Assistance Authority may require as security for the cost of the investigation in connection with such application, and such deposit may be applied by the Rural Assistance Authority in payment or part payment of the cost of such investigation.
s 3: Am 1986 No 104, Sch 1 (3).
4 Rural Assistance Authority may grant or refuse application
4 Rural Assistance Authority may grant or refuse application
4 Rural Assistance Authority may grant or refuse application
(1) Upon receipt of an application the Rural Assistance Authority shall decide whether or not an advance shall be made.
(2) Where the Rural Assistance Authority decides to make an advance it shall furnish to the applicant a statement setting out a description of the works which the Rural Assistance Authority has approved be carried out and specifying—
(a) where the works are to be carried out by any person other than the appropriate Authority—the amount proposed to be advanced, not exceeding 90 per cent of the cost of the works as estimated by the Rural Assistance Authority, or
(b) where the works are to be carried out by the appropriate Authority—
(i) the terms and conditions on which the appropriate Authority is prepared to carry out the works,
(ii) the charge which the appropriate Authority requires to be paid for the carrying out of the works by it or in the manner in which that charge is to be assessed, and
(iii) the amount, not less than 10 per cent of that charge, to be paid to the appropriate Authority under subsection (3).
(3) If, on receipt of the statement referred to in subsection (2), the applicant is desirous of obtaining the advance, the applicant shall notify the Rural Assistance Authority in a form approved by the Rural Assistance Authority, and where the applicant desires the works to be carried out by the appropriate Authority, the notification shall be accompanied by the amount set out in the statement referred to in subsection (2) to be paid to the appropriate Authority.
s 4: Am 1986 No 104, Sch 1 (4).
5 Rural Assistance Authority to make advances
5 Rural Assistance Authority to make advances
5 Rural Assistance Authority to make advances
(1) In any case where the applicant notifies the Rural Assistance Authority under section 4 (3) that the applicant desires the advance such advance shall, subject to the provisions of this Act, be made by the Rural Assistance Authority by way of loan bearing interest at such rate as may be fixed by the Rural Assistance Authority from time to time.
(2), (3) (Repealed)
s 5: Am 1986 No 104, Schs 1 (5), 2 (3); 1989 No 98, Sch 1.
6 Conditions precedent to advances
6 Conditions precedent to advances
6 Conditions precedent to advances
No advance shall be made under this Act unless the Rural Assistance Authority is satisfied—
(a) that farming operations will be carried on on the farming lands efficiently and with a reasonable prospect of success, and
(b) that the carrying out of the works in respect of such farming lands is necessary to ensure a more efficient carrying on of those operations on such lands.
s 6: Am 1986 No 104, Sch 1 (6).
7 Amount of advance where works not carried out by appropriate Authority
7 Amount of advance where works not carried out by appropriate Authority
7 Amount of advance where works not carried out by appropriate Authority
(1) The amount of an advance to be made to an owner where the works are to be carried out by any person other than the appropriate Authority shall be finally determined by the Rural Assistance Authority upon the completion of the works and shall not exceed 90 per cent of the actual cost incurred by the owner in respect of the carrying out of the works.
(2) A certificate issued by the appropriate Authority certifying—
(a) that works have been completed, and
(b) that a specified amount is the actual cost incurred by an owner in respect of the carrying out of works,
is evidence in favour of the Rural Assistance Authority of the matters certified.
s 7: Subst 1986 No 104, Sch 1 (7).
8 Payment of advance where works not carried out by appropriate Authority
8 Payment of advance where works not carried out by appropriate Authority
8 Payment of advance where works not carried out by appropriate Authority
(1) Where any works in respect of which an advance is to be made under this Act are carried out by any person, other than the appropriate Authority, such advance shall be made in such manner as the Rural Assistance Authority directs and upon the appropriate Authority notifying the Rural Assistance Authority that the works have been completed, or are partly completed, as the case may be.
(2) The appropriate Authority or the Rural Assistance Authority may, by its officers and servants, enter any land for the purpose of inspecting works referred to in subsection (1).
s 8: Am 1970 No 5, sec 5; 1986 No 104, Sch 1 (8).
9 Appropriate Authority may carry out work where advance is made
9 Appropriate Authority may carry out work where advance is made
9 Appropriate Authority may carry out work where advance is made
(1) In any case where the owner desires the appropriate Authority so to do the appropriate Authority may for or on behalf of and at the cost of the owner carry out works in respect of which an advance is to be made under this Act.
(2) Any works carried out by the appropriate Authority under this section shall be carried out on such terms and conditions, including the charge to be paid therefor or the manner in which such charge is to be assessed, as may be agreed upon by the owner and the appropriate Authority.
(3) Where the charge to be paid by the owner for any works carried out by the appropriate Authority under this section is the actual cost incurred by the appropriate Authority in carrying out the works, the amount of the actual cost shall include all proper supervision costs and overhead expenses and the notification referred to in subsection (5) shall be accepted as final and conclusive evidence of such actual cost.
(4) Where any works are carried out by the appropriate Authority under this section, the amount of the advance to be made by the Rural Assistance Authority shall be the charge agreed to be paid by the owner to the appropriate Authority for the carrying out of the works less the amount paid to the appropriate Authority by the owner under the provisions of section 4 (3).
(5) On completion of any such works carried out by the appropriate Authority notification in writing issued by the appropriate Authority setting out the amount of the charge to be paid to the appropriate Authority for the carrying out of the works shall be forwarded to the Rural Assistance Authority whereupon the amount of the advance shall be paid to the appropriate Authority by the Rural Assistance Authority and thereupon the advance shall, for the purposes of this Act, be deemed to have been made to the owner.
s 9: Am 1986 No 104, Schs 1 (9), 2 (4); 1987 No 209, Sch 14 (1); 1990 No 46, Sch 2.
10 Appropriate Authority may let machinery etc on hire
10 Appropriate Authority may let machinery etc on hire
10 Appropriate Authority may let machinery etc on hire
(1) The appropriate Authority may let on hire any machinery, plant or equipment for the purpose of the carrying out of works by an owner of farming lands.
(2) Where the appropriate Authority has let out on hire any machinery, plant or equipment for the purpose of carrying out any works in respect of which an advance is to be made under this Act, the Rural Assistance Authority shall, out of the moneys to be advanced to the owner, pay to the appropriate Authority the amount of any such hire and any such amount shall, for the purposes of this Act, be deemed to have been advanced to the owner.
s 10: Am 1986 No 104, Sch 1 (10).
11 Works of joint water supply
11 Works of joint water supply
11 Works of joint water supply
(1) The owners of two or more separate parcels of land who are desirous of having water supplied to their lands by means of a joint water supply scheme may, whether or not the whole of the works are to be constructed on the land of one owner, make an application for an advance for the carrying out of works for that purpose. The provisions of sections 3 (2) and 4 shall apply, mutatis mutandis, to and in respect of an application under this section.
(2) The amount of every advance made in pursuance of an application lodged under this section shall be repaid by the whole of the owners in such proportions as may be agreed upon between them. Notification of such proportions shall be given to the Rural Assistance Authority when giving notification in accordance with section 4 (3).
s 11: Am 1986 No 104, Schs 1 (11), 2 (5).
12 Repayment of advance secured by deed of charge
12 Repayment of advance secured by deed of charge
12 Repayment of advance secured by deed of charge
(1) The repayment of every advance made under this Act together with interest as hereinbefore provided shall be secured by a deed of charge over the farming lands of the owner in such form as may be required by the Rural Assistance Authority.
Where the advance is made to two or more owners under section 11, each owner shall execute a deed of charge to secure the repayment of the owner’s respective proportion of the amount of the advance.
(2) Such deed of charge shall, where the works are to be carried out by any person, other than the appropriate Authority, be expressed to be made between the owner of the farming lands and the Rural Assistance Authority, and where the works are to be carried out by the appropriate Authority, be expressed to be made between the owner of the farming lands, the appropriate Authority and the Rural Assistance Authority, and shall provide for the repayment of the amount advanced to such owner by consecutive half-yearly instalments within a period, not exceeding fifteen years, determined by the Rural Assistance Authority, together with interest as aforesaid on the amount owing from time to time, and shall contain—
(a) a condition to the effect that in the event of the owner failing to maintain the works in respect of which the advance is made to the satisfaction of the Rural Assistance Authority the whole of the principal and interest secured by the charge shall at the option of the Rural Assistance Authority become immediately due and payable, and
(b) such other powers, covenants, provisions, conditions and clauses as the Rural Assistance Authority determines.
(3) Where any works are to be carried out by the appropriate Authority such deed of charge shall be executed by the owner before the commencement of the construction of the works by the appropriate Authority and where any works are to be carried out by any person, other than the appropriate Authority, such deed of charge shall be executed by the owner before any advance is made to the owner.
(4) Any sum payable under a deed of charge under this section shall be paid to the Rural Assistance Authority and shall, until so paid, be and remain a charge in its favour on the land mentioned in the deed, and shall be recoverable by the Rural Assistance Authority in any court of competent jurisdiction from the owner of the land for the time being.
(5) The provisions of this section have effect despite anything contained in section 42 of the Real Property Act 1900.
s 12: Am 1986 No 104, Sch 1 (12); 2009 No 17, Sch 3.8.
13 Appropriate Authority may carry out work where advance is made
13 Appropriate Authority may carry out work where advance is made
13 Appropriate Authority may carry out work where advance is made
(1) Where the owner or occupier of any farming lands desires the appropriate Authority to carry out works and is prepared to p
This is an opening excerpt, not the complete document.