Frequently asked questions – Private water corporations

Private water corporations can refuse or reduce water supply to a member or a landholder if:

• there is not enough water available to meet the demand
• the water that is available is not suitable for the required purpose
• the corporation is unable to provide sufficient conveyance water in connection with the operation of an irrigation system
• the corporation cannot lawfully supply the quantity of water
• the member or landholder has failed to pay rates or charges for water or other services
• the member or landholder has contravened or failed to comply with a condition on which water services are supplied
• the member or landholder has contravened or failed to comply with a requirement made by the corporation relating to the provision, maintenance or repair of distribution works, or any other requirement made by the corporation in accordance with the Act, the regulations, or the rules
• the member or landholder has contravened or failed to comply with a requirement of the Act, the regulations, or the rules
• the corporation is unable to dispose of water draining into its drainage system because of the degraded quality of the water.

Yes, private water corporations can enter into agreements with non-members. For example, agreements to supply water or to drain land using the corporation’s water supply, water distribution or drainage system.

But corporations cannot supply water to non-members for domestic purposes if the person has a supply of water available to them from a local water utility or major utility.

No, corporations can decide in their rules where water is supplied to.

The employees or agents of a private water corporation can enter land on which corporation works are located. The location of corporation works will be included in the corporation’s works plan.

Land on which corporation works are located can be entered for the following reasons:

• carry out any corporation functions in relation to their works
• read a meter that measures water they supply, or monitors drainage for quantity or quality, or both
• carry out investigations or inspections, take levels, drill test boreholes, dig trenches, make surveys and marks, and fix pegs and stakes, for the purposes of designing, constructing, or determining the site of their proposed works
• remove samples of materials from the land for the purposes of carrying out their functions, but only if the landholder has been consulted and the views of the landholder have been considered
• exercise any other powers that are incidental to their functions or that are reasonably necessary for carrying out their functions.

Generally, corporations must give landholders prior notice that they will enter their land. However, prior notice is not required if the entry relates to reading a meter or exercising any other functions that are incidental to the corporation’s functions or that are reasonably necessary for carrying out their functions. Prior notice is not required when entering land to undertake emergency works.

Corporations have additional powers to enter land to investigate a suspected breach of an irrigation, water supply, water distribution or drainage agreement.

Yes, members of private water corporations that supply water for irrigation can have their water entitlement determined. Members can request their water entitlement to be transformed into an access licence.

Yes, if the sale or transfer has been approved in accordance with the private water corporation’s rules.

For members to sell or transfer their entitlements, this must be specified in the corporation’s rules. As this will be relevant to some corporations only, the model rules do not include recommended text for selling or transferring member’s water entitlements.

No, members cannot sell or transfer their member's entitlement to non-members.

As a general principle, private water corporations operate by voting, and decisions should be made by voting on resolutions or changes to resolutions. Your corporation can specify in its rules how disputes will be resolved, including disputes about the contents of the works plan or rules. We have included a recommended dispute resolution process in the model rules.

The Natural Resources Access Regulator can direct private water corporations to comply, or cease contravening, their rules. If you think your corporation is not complying with their rules, you can report a suspicious activity. You may also contact us on either 1300 081 047 or by emailing jpws@dpie.nsw.gov.au.

Also, if we believe corporations are regularly and seriously contravening their rules, the Act or the regulation, we may remove the board and appoint an administrator to manage the affairs of the corporation.

Rules that are inconsistent with the Water Management Act 2000 are unlawful and unenforceable to the extent of the inconsistency.

If your corporation has made rules that are inconsistent with the Act, the specific rules that are inconsistent will be invalid to the extent that they are inconsistent with the Act or the Regulations. Any part of the rule which is not inconsistent will still apply. Consider advising your corporation that you think the rules are unlawful and ask them to change those rules.

Any person can bring proceedings in the Land and Environment Court to remedy or restrain a breach of the Act or the regulations. Making rules inconsistent with the Act would generally be a breach.