Dealings process

Pre-application

Before commencing a water dealing you should:

• Check the Dealing Principles and water sharing plan access licence Dealing Rules to see if your proposed dealing is permitted. These are available online on the NSW Legislation website.
  • For Dealing Principles – browse Regulations as Made for the Water Management Act 2000 Access Licence Dealing Principles order.
  • For water sharing plan dealing rules – browse Regulations etc in Force and select the relevant water sharing plan.
• Check the applicable fees.
  • General dealing application fees – payable to the NSW Office of Water. Go to Transaction fees for access licences and approvals under the Water Management Act 2000 (PDF 77 KB).
  • Registration fees for all general dealings on the Water Access Licence Register (WAL Register) – payable to LPI.
  • Water allocation assignment fees – payable to State Water.
• Download the relevant dealing application form from the website of the relevant agency. For NSW Office of Water forms, clients have of the option of downloading a blank form in PDF or Word, or completing the form online and printing the completed version.

Searches

When purchasing a water access licence it is important that you check:

• water access licence details – including the current holders, encumbrances and any notifications. Go to the WAL Register to search online;
• water access licence conditions. Go to the conditions register on the NSW Office of Water website; and
• water allocation account statements – including the current water allocation account balance and outstanding charges. Go to State Water for water access licences in regulated rivers and major inland groundwater systems.

The new holder of a water access licence will be liable for any outstanding water charges that may be owed. This should be taken into account in the settlement.

Fees apply for water access licence searches and water allocation account statements.

Contracts of sale and purchase

Contracts are recommended for transfers of a licence, assignment (sale) of share component or a term transfer. Contracts are also advisable for assignments of a water allocation.

If you are using an intermediary such as a water broker, you may want to confirm that they have appropriate trust and fiduciary arrangements.

Submitting an application

All holders of the water access licence or, in the case of a transfer of a holding, all co-holders in that holding, must authorise the application.

You do not need consent from NSW Office of Water to transfer the holder or for term transfer of a water access licence. These dealings only require registration by LPI on the WAL Register once the sale or term transfer has been settled.

Applications for a water allocation assignment (regulated rivers and major inland groundwater systems) must be lodged with State Water.

Ensure the relevant application form is fully completed and submit it, with your application fee (PDF 76 KB). A guide to how to complete each application is included with NSW Office of Water forms.

How is the application processed and assessed?

For applications lodged with the NSW Office of Water, an application will be registered on the NSW Office of Water's database if it is complete. Processing of the application will be delayed if further information is required. If this information is not received within the requested time, the NSW Office of Water may reject the application. The fee will be refunded in this event. An application may also be rejected if the licence is currently suspended.

Applications will be assessed to ensure they are consistent with the provisions of the Water Management Act 2000, the access licence Dealing Principles, and the water sharing plan access licence Dealing Rules. In some cases this will require assessment of the local impacts. The water sharing plans and access licence Dealings Principles are available on the NSW Legislation website.

The NSW Office of Water will provide you with a Notice of Determination once processing is complete. If consent is granted, the NSW Office of Water will also provide you with the Notification Form for lodgement with LPI.

Registration of general water dealings

The consent of all holders of registered security interests in the licence (eg financial institutions with a mortgage over the licence) or, in the case of a transfer of a holding, all holders of security interests registered against that holding, must be provided to LPI before a general water dealing can be registered.

To register a term transfer relating to just a holding in the licence (rather than the whole licence), only the consent of the co-holders and registered security interests in that particular holding is required.

In the case of transfers and term transfers, it is the responsibility of the transferee (buyer) to register the dealing with LPI.

In the case of all other general water dealings, it is the responsibility of the holder to register the dealing with LPI. In the case of assignments of share component, it will be the holder of the water access licence to be reduced.

For dealings requiring NSW Office of Water consent

• Lodge the completed Notification Form, Notice of Determination and the licence certificate(s) with LPI. (The Notification Form and Notice of Determination are prepared by the NSW Office of Water and given to the client for lodgement).
• If the licence certificate is held by a secured interest holder, arrangements should be made with the secured interest holder to make the certificate available at LPI.
• Consents are required from all secured interest holders recorded on the water access licence title for registration of dealings.

For dealings not requiring NSW Office of Water consent

• Lodge the completed forms (originals) and the licence certificate at LPI.
• If the licence certificate is held by a secured interest holder, arrangements should be made with the secured interest holder to make the certificate available at Land and Property Information.

Water access licence dealings only become legally effective from the date they are registered on the WAL Register.

After a general water dealing is registered, LPI will issue the next edition of the certificate or, in the case of subdivisions, consolidations and change in category, a new water access licence certificate. As noted above, LPI charges fees for registering dealings and issuing the new or updated water access certificate.

Registration of water allocation assignments

Water allocation assignment dealings take effect from the time the water allocation accounts of the buyer and seller are adjusted.