Water Management Act 2000

Water users and licence holders. Any person who takes water from a water source to which Part 2 of Chapter 3 applies must hold an access licence (s 60A). This includes those taking water for irrigation, commercial purposes, industry, mining, or town water supply. Holders of access licences are subject to the conditions of their licences and to the water sharing rules in management plans.

Landholders. Landholders are affected by basic landholder rights provisions (ss 52-55) and by the requirement to hold approvals for water management works (ss 91B-91D). Section 52 imposes restrictions on domestic and stock rights, including compliance with mandatory guidelines under s 336B. Section 53 imposes restrictions on harvestable rights where work capacity exceeds the maximum harvestable right volume. Landholders are also subject to directions under Chapter 7, Part 1, including directions to install metering equipment (s 326), to cease unlawful construction (s 327), and to protect water sources (s 333).

Irrigation corporations. Part 1 of Chapter 4 applies to irrigation corporations named in Schedule 1. They hold operating licences (ss 122-126), are responsible for water management works, and may enter land for operational purposes (s 120). They are subject to the requirement to hold appropriate access licences and approvals (s 118).

Private water corporations and private water trusts. Part 2 of Chapter 4 applies to private water corporations listed in Schedule 13. Part 4 of Chapter 4 applies to private water trusts under Part 3 of the former Water Act 1912. Both are subject to works plans, rules, and requirements for access licences and approvals (ss 140, 222). They may determine members' water entitlements (ss 154, 234) and levy rates and charges on members.

Water supply authorities. Part 2 of Chapter 6 applies to water supply authorities listed in Schedule 3. They have functions including constructing, maintaining and operating water management works (s 292), entering land to read meters or carry out works (s 296), and levying service charges (s 310). They are subject to requirements for access licences and approvals (s 284).

Major utilities and local water utilities. Major utilities listed in Schedule 2 (s 281) and local water utilities are subject to special provisions. Local water utility access licences must have share components expressed as a specified volume per year (s 56(4)). The Minister must vary each local water utility licence every five years to reflect population variation (s 66(3)).

Mining and petroleum operators. Section 60I provides that a person who takes water in the course of carrying out a mining activity is taking water from a water source for the purposes of the Act, and is required to hold an access licence. This extends to water removed, diverted or relocated as a result of mining activities, including water re-located from one part of an aquifer to another.

Aboriginal persons. The Act recognises Aboriginal interests in several ways. Section 3(c)(iv) includes benefits to Aboriginal people in relation to their spiritual, social, customary and economic use of land and water as an object of the Act. Section 5(2)(e) requires protection of geographical and other features of Aboriginal significance. Section 13(1)(e) requires at least two Aboriginal persons be appointed to management committees. Native title rights are preserved under s 55.

Duty to obtain access licence before taking water. Section 60A(2) provides that a person must not take water from a water source to which Part 2 of Chapter 3 applies unless they hold an access licence. Section 60A(1) creates a Tier 1 offence for intentionally or negligently taking water without an access licence. Section 60A(4) provides that a licence holder must not take water other than as authorised by the licence.

Duty to comply with water allocation limits. Section 60C creates offences for taking water for which there is no or insufficient water allocation. Section 60C(2) provides that a person must not take water other than in accordance with the water allocation for the access licence. Section 60C(6) extends this to holders of two or more access licences that nominate the same water supply work, prohibiting taking water in excess of the combined water allocations.

Duty to obtain approvals. Sections 91A through 91F create offences for using water without a water use approval, constructing or using water supply works, drainage works or flood works without the relevant approval, and carrying out controlled activities or aquifer interference activities without approval. Each section contains a Tier 2 penalty and Tier C civil penalty.

Duty to install and maintain metering equipment. Section 101A makes it a mandatory condition of a water supply work approval that metering equipment is installed, used and properly maintained. Section 91H creates offences for failing to install or use required metering equipment, failing to ensure proper operation, and failing to comply with regulatory standards. Section 91I creates a Tier 1 offence for taking water while metering equipment is not operating properly, with knowledge or negligence. Section 91IA requires notification of metering equipment failure within 24 hours.

Duty to comply with directions. Section 336C creates a Tier 2 penalty and Tier C civil penalty for failing to comply with a direction under Chapter 7, Part 1. These directions include temporary water restrictions (s 324), directions concerning waste of water (s 325), directions to install metering equipment (s 326), stop work orders (ss 327-328), and directions to protect water sources (s 333).

Rights to compensation. Section 87 provides compensation for holders of access licences (other than certain supplementary water access licences) whose water allocations are reduced as a consequence of variation of a bulk access regime during the initial period a management plan is in force. Section 87AA provides compensation for certain licence categories whose water allocations are reduced due to changes in management plan provisions after the initial period, subject to limitations including that no compensation is payable for reductions of 3% or less for more accurate scientific knowledge, and compensation is capped for reductions above certain thresholds.

Rights of appeal. Section 368 provides appeals to the Land and Environment Court against numerous decisions including refusal to grant an access licence, imposition of discretionary conditions, suspension or cancellation of licences or approvals, decisions imposing charges under ss 60G and 91O, and directions under Chapter 7, Part 1. Appeals must be made within 28 days of the decision.

Tiered penalty structure. Section 363B establishes three tiers of penalties. A Tier 1 penalty for a corporation is a maximum of 45,500 penalty units and a further 2,400 penalty units for each day a continuing offence continues. For an individual, a Tier 1 penalty is imprisonment for 2 years or 10,000 penalty units, or both. A Tier 2 penalty for a corporation is 18,200 penalty units, and for an individual is 4,550 penalty units. A Tier 3 penalty is 100 penalty units. Continuing offence penalties apply at specified daily rates.

Civil penalty provisions. Part 6 of Chapter 7 (inserted by the Water Management Legislation Amendment (Stronger Enforcement and Penalties) Act 2025) establishes civil penalty provisions. Section 370 provides that a provision is a civil penalty provision if the words "Maximum civil penalty" and a civil penalty tier level appear. Section 370F sets maximum civil penalties: Tier A for individuals is the greater of 45,450 penalty units or five times the value of the water taken; Tier B is 45,450 penalty units; Tier C is 23,000 penalty units. Corporate penalties are approximately double.

Charges for water illegally taken. Section 60G empowers the Minister to impose a charge, including a penalty component, of between the value of the water taken and five times that value. The Minister may also order debits from water allocation accounts of one to five times the volume taken. Section 60G(5) requires the Minister to consider harm to other water users or the environment, monetary benefit obtained, aggravating and mitigating factors, previous conduct, and the maximum Tier 2 penalty for the contravention.

Administrative penalties. Section 78(2) empowers the Minister to order a major utility or local water utility to pay an administrative penalty not exceeding $500,000 plus $20,000 per day for continuing circumstances. Section 109(2) provides similar penalties for approvals held by major utilities.

Enforcement powers. Chapter 7, Part 1 empowers the Minister to give directions including temporary water restrictions (s 324), directions concerning waste of water (s 325), directions to install metering equipment (s 326), stop work orders (ss 327-328), directions to remove unlawful works (s 329), and directions to protect water sources (s 333). Section 335 empowers the Land and Environment Court to grant injunctions on the Minister's application to enforce directions.

Enforceable undertakings. Section 336E allows the Minister to accept written undertakings in connection with matters under the Act. The Land and Environment Court may make orders if an undertaking is breached, including orders directing compliance, orders to pay financial benefits obtained, orders to compensate persons suffering loss, and orders to prevent or make good environmental damage.

Penalty notices. Section 365 allows authorised officers to issue penalty notices for offences prescribed by the regulations as penalty notice offences.

Limitation periods. Section 364 provides that proceedings for offences may be commenced within three years after the date the offence is alleged to have been committed, or within three years after evidence first came to the attention of an authorised officer. Civil penalty proceedings may be brought within three years after the later of the contravention occurring or first coming to the attention of an authorised officer (s 370G).

Water Act 2007 (Cth). The Act contains multiple provisions responding to Commonwealth water legislation. Section 16 requires management plans to be consistent with the Murray-Darling Basin Agreement set out in Schedule 1 to the Water Act 2007 (Cth). Section 45(1)(d) allows the Minister to amend a management plan to give effect to requirements arising under the Commonwealth Act. Section 45(5A) allows the Minister to repeal a water sharing management plan if required by the Commonwealth Act. Section 63A allows the Minister to grant access licences to the Commonwealth to form part of Commonwealth environmental water holdings.

Environmental Planning and Assessment Act 1979. Section 16 requires management plans to be consistent with State environmental planning policies under the EP&A Act. Section 34 of the Act allows management plans to contain environmental protection provisions incorporating concepts from the EP&A Act. Section 99 provides special procedures where approvals under this Act relate to integrated development under the EP&A Act. Section 94 requires the Minister to refer certain applications to the Independent Planning Commission.

Protection of the Environment Operations Act 1997. Management plans must be consistent with protection of the environment policies under the POEO Act (s 16). Section 389B makes Schedule 2A to the POEO Act applicable to this Act for enforcement of gas and other petroleum legislation.

Local Land Services Act 2013. Section 18 requires management committees to have due regard to local strategic plans under the Local Land Services Act. Section 13(1)(d) requires one member of a management committee to be nominated by Local Land Services.

Water NSW Act 2014. Management plans must be consistent with regulations under the Water NSW Act (s 16). Section 372A confers metering equipment functions on the Ministerial Corporation.

Real Property Act 1900. Section 4(1A) provides that defined terms from the Real Property Act apply to access licences and dealings in them. Section 88(2) allows regulations to apply provisions of the Real Property Act to the Access Register.

Dams Safety Act 2015. Section 91AA requires consultation with Dams Safety NSW before granting water management work approvals for declared dams or prescribed classes of dams and flood retarding basins.

Crown Land Management Act 2016. Section 303 provides that action may not be taken under the Crown Land Management Act in respect of land within a special area for a water supply authority unless the authority has given written approval.

Commonwealth water legislation displacement. Section 400B allows regulations to declare provisions of this Act to be Commonwealth water legislation displacement provisions for the purposes of s 250D of the Water Act 2007 (Cth), enabling displacement of Commonwealth provisions.

Water Management Legislation Amendment (Stronger Enforcement and Penalties) Act 2025. This significant amendment introduced a comprehensive civil penalty regime through new Part 6 of Chapter 7. It established the tiered civil penalty structure (ss 370F), provisions for involvement in contraventions (s 370B), corporate and co-holder liability (ss 370C-370D), and court orders for contraventions (s 370R). It also introduced provisions for forfeiture of seized things (ss 339K-339M), remedial measures by the Minister (ss 336G-336L), new cancellation orders (s 353FB), orders to forfeit monetary benefits (s 353F), and recovery of monetary benefits from related persons (s 353FA). Section 341 was inserted to create offences and civil penalty contraventions for receiving monetary benefits from underlying matters.

Water Management Amendment Act 2024 (No 80). This Act amended section 2 to provide for commencement by proclamation. Section 17 was amended to include provisions for advertisement of applications for approvals. Section 77A was amended to extend cancellation provisions for specific purpose access licences. Section 88AA was inserted to allow conditions of exemptions from access licence requirements. Part 3, Division 7 (ss 113A-113D) was inserted to provide for exemptions from approval requirements, including for public authorities during drought (s 113B), emergencies (s 113C), and controlled activities (s 113D). Section 115 was amended to allow regulations to impose mandatory conditions. Part 6 of Chapter 6 was amended to expand water supply authority functions regarding discharges, protection of water supply, metering, drainage areas, firefighting services, and plumbing work.

Water Management Amendment Act 2018 (No 31). This Act introduced sections 49B for suspension of Basin management plans during extreme events, 71QA for assignment of individual daily extraction components, 85AA for daily extraction accounts, and 101A making metering equipment a mandatory condition. It also introduced Part 5 of Chapter 3 (s 115) allowing regulations to impose mandatory conditions, Part 6 of Chapter 3 (s 115B) for metering equipment regulations, and Division 8 of Chapter 7, Part 1 (ss 336E-336F) for enforceable undertakings.

Water Management Amendment Act 2014 (No 48). This Act introduced s 4A defining overland flow water, substituted ss 53 and 54 for harvestable rights, introduced floodplain harvesting access licences (ss 57A, and amendments to Schedule 10), and made extensive amendments to streamline licensing and trading processes including combined approvals (s 99A) and amendments to conditions provisions.

Validity of management plans. Section 47 strictly limits judicial review of management plans. Section 47(1) provides that validity may be challenged only in the Land and Environment Court within the judicial review period. Section 47(2) sets the judicial review period at three months after publication. Section 47(3) provides that the period cannot be extended. Section 47(5) provides that the rules of natural justice do not place enforceable obligations on designated persons in relation to plan-making functions except in the Land and Environment Court within the judicial review period.

Compensation disputes. Sections 87 and 87AA have been the subject of significant controversy. Section 87(9) limits compensation to the first management plan period (excluding extensions). Section 87AA(6) provides a 3% threshold below which no compensation is payable for reductions due to more accurate scientific knowledge, and caps compensation at one-third of amounts for reductions of 3-6% and one-half for reductions above 6%. Section 87AA(8) provides that the section operates only while Commonwealth funding agreements are in force.

Aboriginal water rights. The Act's recognition of Aboriginal interests has been subject to ongoing debate. The requirement for at least two Aboriginal persons on management committees (s 13(1)(e)) and the objects provision (s 3(c)(iv)) represent significant but contested steps. The interaction between native title rights under s 55 and the broader licensing framework raises complex issues.

Floodplain harvesting regulation. The introduction of floodplain harvesting access licences through s 57A has been controversial. The section allows regulations for conversion of actual or proposed floodplain water usage into replacement licences, addressing long-standing questions about the legal status of floodplain water capture.

Interaction with mining and CSG. Section 60I's application to mining activities, including water re-located from one part of an aquifer to another, has been contentious. The requirement for mining operators to hold access licences for water taken in the course of mining activities represents a significant regulatory imposition.

Rebuttable presumptions. Section 367B(1) creates powerful presumptions in proceedings: that a water management work on a landholder's land was constructed by the landholder, that a work on the land is being used by the landholder, that water taken by a work on the land is taken by the landholder, and that water used on the land is used by the landholder. The burden of rebutting these presumptions falls on the defendant.

Occupier liability. Section 60E provides that the occupier of premises at or from which water is taken in contravention of Division 1A is taken to have contravened that provision unless it is established that the water was taken by another person not associated with the occupier and the occupier took all reasonable steps to prevent the taking. A person is associated with the occupier if they are an employee, agent, licensee, contractor or sub-contractor. Section 91L provides similar occupier liability for water management work and activity contraventions.

Co-holder liability. Section 363A provides that if an offence arises in relation to an access licence or approval, each co-holder is taken to have committed the offence unless they establish the offence was committed by another person not associated with them and they took all reasonable steps to prevent it.

Continuing offences. Section 365A provides that a person is guilty of a continuing offence for each day a contravention continues. The person continues to be required to comply with the legal requirement despite a time for compliance having passed. This significantly increases potential penalties for ongoing non-compliance.

Defence of honest and reasonable mistake. Section 370P(3) provides that the defence of honest and reasonable mistake of fact may be established in civil penalty proceedings. However, s 370P(1) provides that proof of intention, knowledge, recklessness or negligence is not required for most civil penalty provisions, shifting the burden to the defendant.

No compensation for certain reductions. Section 87AA(3)(c) provides that no compensation is payable if the reduction in water allocations is for the purpose of restoring water to the environment because of natural reductions in inflow, including changes resulting from climate change, drought or bushfires. This excludes compensation for some of the most significant potential reductions.

Suspension of management plans. Section 49A allows the Minister to suspend a management plan during severe water shortages. Section 49B allows suspension of Basin management plans during extreme events. Section 60(3) and (3A) override the normal rules of distribution for available water determinations while these orders are in force. No compensation is payable (s 60(4)).

Mandatory conditions. Section 66(1AA) provides that an access licence is subject to any mandatory conditions imposed by the Act or regulations, even if not included in the licence terms. Section 66(1A) provides that mandatory conditions (other than those imposed by regulations) do not have effect unless included in the licence. Section 101A makes metering equipment a mandatory condition of water supply work approvals.

Court orders for monetary benefits. Section 353F empowers the Land and Environment Court to order an offender to pay amounts estimated as monetary benefits obtained from an offence involving taking water. Section 353FA extends this to related persons of corporations.

Determine whether Part 2 or 3 of Chapter 3 applies. Before taking water, constructing works, or carrying out activities, ascertain whether the water source or area has been declared by proclamation under s 55A or 88A to be subject to the relevant Part. If not, the former provisions of the Water Act 1912 continue to apply by operation of Schedule 10.

Obtain necessary licences and approvals. Apply for an access licence under s 61 for each water source from which water is taken. Apply for a water use approval under s 92 if water will be used for a particular purpose at a particular location. Apply for a water management work approval (water supply work, drainage work, or flood work) under s 92 if constructing or using works. Apply for a controlled activity approval or aquifer interference approval if carrying out activities on waterfront land or interfering with aquifers.

Comply with management plans. Identify the relevant management plan for the water management area or water source. Ensure that all taking of water, use of water, construction of works, and carrying out of activities complies with the water sharing rules, environmental water rules, access licence dealing rules, and any other provisions of the plan.

Install and maintain metering equipment. Section 101A makes metering a mandatory condition of water supply work approvals. Install metering equipment that complies with regulatory standards. Ensure it is properly maintained and its accuracy certified. Comply with record-keeping requirements under s 91J and notification requirements under s 91IA.

Maintain water allocation accounts. Monitor the water allocation account for each access licence under s 85. Do not take water in excess of available water allocations (s 60C). Ensure that water taken is debited appropriately and that any assignments of water allocations (ss 71T, 71V) are properly recorded.

Comply with conditions. Ensure compliance with all mandatory and discretionary conditions of access licences and approvals. Section 60B creates offences for contravening licence conditions by both the licence holder and any person taking water under the licence. Section 91G creates similar offences for approval conditions.

Keep records and provide information. Maintain metering records as required. Comply with notices under s 338A requiring information or records. Provide accurate information. Section 344 creates offences for false or misleading information.

Respond to directions. Comply promptly with any direction under Chapter 7, Part 1, including directions concerning waste of water (s 325), metering (s 326), stop work orders (ss 327-328), and protection of water sources (s 333). Section 336C provides that failure to comply is an offence, and the direction continues to have effect until complied with (s 395A).

Manage security interests and dealings. Record dealings in the Access Register under Schedule 1A. Ensure appropriate consents are obtained from co-holders and security holders. Comply with the access licence dealing principles (s 71Z) and dealing rules in management plans.

Pay fees and charges. Pay all fees, charges and administrative penalties imposed under the Act. Unpaid amounts may be recovered as a debt (s 362C) and may lead to suspension or cancellation of licences or approvals (ss 78, 109).