Licences

The Water Management Act 2000 recognises that a WAL is a valuable asset. WALs under the Water Management Act 2000:

• provide a clearly defined entitlement listed on a public WAL Register that is separate from land ownership
• separate the entitlement to access water from the approvals associated with water supply works and the use of water.

'Continuing' WALs provide:

• a clearly defined right to a share of the available work in a particular water source
• increased opportunities to trade water through the separation of land and water rights.

WAL categories help define the priorities between different WALs, the conditions that apply to them and, in the case of specific purpose category WALs, define how water may be used. They include:

• regulated river (high security)
• regulated river (general security)
• regulated river (conveyance)
• unregulated river
• aquifer (groundwater)
• estuarine water
• coastal water
• supplementary water
• major utility
• local water utility
• domestic and stock.

Subcategories of any category of WAL may be prescribed by the regulations.

Applications may be made for the following specific purpose WALs (subject to any restrictions contained in a relevant management plan) as follows:

Category of access licence: Domestic and stock
Subcategory: Domestic
Purpose: Domestic consumption

Category of access licence: Unregulated river
Subcategory: Town water supply
Purpose: Supply to communities for domestic consumption and commercial activities

Category of access licence: Regulated river (high security)
Subcategory: Town water supply
Purpose: Supply to communities for domestic consumption and commercial activities

Category of access licence: Aquifer
Subcategory: Town water supply
Purpose: Supply to communities for domestic consumption and commercial activities

Note: Applications made by Department of Industry - Water customers (i.e. major utilities, water supply authorities, government agencies) for WAL categories - Aboriginal cultural, local water utility, licences under the Mining Act and floodplain harvesting, will need to apply to the Department of Industry - Water.

Security interests (such as mortgages) cannot be registered over specific purpose licences.

The reference to ‘tenure’ on a WAL certificate indicates the duration of the WAL. A WAL ceases to be in force on the cancellation date as recorded on the WAL Register.

• A ‘continuing’ WAL is granted in perpetuity, which means it does not need to be renewed. It is typically used for a commercial purpose such as irrigation or industrial use. ‘Continuing’ water WALs include supplementary WALs issued for regulated rivers.
• A ‘specific purpose’ WAL (e.g. for town water or domestic and stock purposes) must be cancelled when the purpose for which the WAL was issued ceases.

Irrespective of the type of tenure, a WAL can be suspended or cancelled if there is a breach of the WAL conditions or other non-compliance.

The WAL Register has a separate record for each WAL issued (called a WAL folio). The online register is administered by NSW Land Registry Services (NSW LRS).

When WaterNSW approves a WAL, it is the responsibility of the applicant to present the notification to NSW LRS to register the WAL on the WAL Register. A fee is charged by NSW LRS. For more information visit NSW LRS website.

NSW LRS issues a duplicate of the WAL folio called the WAL certificate to the licence holder, or any other party entitled to hold the WAL certificate (e.g. a mortgagee). In the case of a former joint water supply authority, where there are a number of separate holders and registered interests, certificates will only be issued where all parties agree on who should hold it.

WAL certificates are valuable legal documents which should be stored carefully. Usually, a new WAL certificate, or edition of the certificate, is generated each time a new dealing is registered.

For more detailed information, go to the Registrar General's Directions website.

Changes to information on the WAL Register about the WAL holder (through a transfer of a WAL) and security interests (such as mortgages or caveats over the WAL and any term transfer arrangements) are managed directly by NSW LRS. The lodgement forms can be obtained from the NSW LRS website.

Changes as a result of other water dealings (e.g. subdivisions, change of location or WAL category) must be approved by WaterNSW before they can be registered on the WAL Register. For application forms and guides, see Applications and fees.

The WAL Register and WAL certificates include the names of the WAL holder/s, type of tenancy if more than one holder, category of WAL, encumbrances, any water dealings (except water allocation) and the WAL details such as the share component, extraction component and nominated works.

For more information on these components of WALs, see Guide to the components of water access licence certificates (PDF, 605.14 KB).

If the application is completed, it will be registered by WaterNSW.

The application will be checked and assessed against the water sharing plan rules applicable to the relevant water source and provisions of the Water Management Act 2000 and Water Management (General) Regulation 2018. You can obtain a copy of the water sharing plan from the NSW Legislation website.

Assessment may require consultation with Native Title representatives or local Aboriginal groups. The assessment officer will also check that, in the case of a specific purpose licence, you have the required approvals or have applied for these, and that the volume of water sought is reasonable for the proposed purpose.

WaterNSW will either grant the application with appropriate conditions or refuse it.

WaterNSW will advise you by letter of the result of your application, known as the notice of determination. If your application has been approved the notice will include the conditions that will apply to the licence.

If an application for a new WAL is granted, it is the responsibility of the applicant to present the notification to NSW LRS to register the WAL on the WAL Register. A fee is charged by NSW LRS.

After registration, NSW LRS will issue the WAL certificate to the WAL holder. It is important to keep the WAL certificate in a safe place as you will need to produce it if you wish to sell your WAL or amend it later. For more information, read the Guide to water access licences and certificates (PDF, 605.14 KB).

Under the Water Management Act 2000, security interests may be registered directly against a Water Access Licence (WAL) on the WAL Register administered by NSW Land Registry Services (NSW LRS).

Under the licence conversion provisions of the Water Management Act 2000, a security interest (registered or unregistered) that relates to a 'prior' licence under the Water Act 1912 is taken to be a security interest against the replacement WAL.

For more information about security interests and WALs, refer to the encumbrances section in the Guide to WALs and certificates (PDF, 605.14 KB).

If you want to register a new security interest against a WAL on the WAL Register, you must lodge the 'dealing' directly with NSW LRS.

A person holding a security interest in relation to a prior licence needs to indicate whether they want that interest registered against the replacement WAL on the WAL Register. This needs to be done in the three-year period. After the three-year period, all unclaimed prior licence interests are extinguished.

WaterNSW will then instruct NSW LRS to allow registration of WAL dealings and the WAL certificate is released. A certificate is needed to buy or sell water (through 'dealings').

As a holder of a WAL, you may want to buy, sell or change your replacement WAL by a WAL dealing within the three-year period for registering prior licence interests. To do this, you will need to initiate and complete the resolution of the prior licence interests. This means you will need to:

• determine the details of the prior licence interests
• request those interest holders to nominate whether they want the interest registered
• lodge the interest holder responses with WaterNSW.

WaterNSW can then instruct NSW LRS to register the 'claimed' interests and release the WAL for dealings.

You can use the WAL Number Search in the online Security Interest Conversion system to identify prior licence interests in your WAL.

To register a prior licence interest in your WAL:

• read the Guide to secured interest registration by holders of replacement WALs (PDF, 657.51 KB)
• complete the Secured interest registration by holders of replacement WALs application form (PDF, 185.06 KB)

Prior licence security interests will be registered by WaterNSW on request within three years of the commencement date of the WAL, providing that:

1. the security interest holder has notified the WAL holder of their intent to register the interest, and the 90-day notice period has lapsed
2. the security interest holder certifies that they have undertaken step 1.

The wording of the notice to the WAL holder must comply with the Mortgagee notice of registration of security interest issue to WAL holders template (PDF, 92.91 KB).

Note that a security interest holder is exempt from this requirement if the licence holder requests WaterNSW, in writing, to have the security interest registered on your behalf. This will typically happen when the WAL holder wants to undertake a dealing before three years expires and before the prior licence interests are resolved by the interest holders.

Security interest holders can use the WAL Number Search in the online Security Interest Conversion system.

Security interest holders can also apply for access to use the Security Interest Conversion system to search for all replacement WALs in which the user may have a prior licence interest and, once the 90-day notification process is complete, lodge claims online with WaterNSW.

To apply for access, go to the Security Interest Conversion system and complete the online request by email to seek approval for login and password access.

Alternatively, security interest holders can lodge a request to register a prior licence interest by completing the Request to register a security interest in a replacement WAL or notify that no security interest exists (initiated by security interest holder) form (PDF, 143.09 KB).

When a water sharing plan commences under the Water Management Act 2000, licences issued under the Water Act 1912 are converted to WALs (and approvals). The conversion is completed with the issue of a WAL certificate. A certificate is needed to buy or sell water through dealings.

The Water Management Act 2000 provides that any security interest on a land attaching to a 'prior' licence under the Water Act 1912 continues as an equivalent interest in the replacement WAL. The party holding that interest needs to indicate whether they wish to register it on the WAL register against the replacement WAL. They will generally have three years from the commencement of the replacement WAL to lodge their claim. Any interests which have not been claimed within that time period are extinguished.

Once all prior interests are resolved (registered or repudiated) the certificate is issued. In the case of a licence with a security interest, the certificate is typically issued to the holder of a security interest.

To request a search for water related interests held under the Water Management Act 2000:

1. Complete the Application for a search for water-related interests form (PDF, 246.13 KB)

2. Pay the application fee identified in the following table of fees by either:
calling WaterNSW on 1300 662 077 and providing your credit card details or enclosing a cheque for the application fee, made out to WaterNSW, when posting the hard copy application form.

3. Submit the completed and signed application form by:

• emailing it to Water.Search@waternsw.com.au or
• posting it to:

  Water Search, WaterNSW
  PO Box 398
  Parramatta NSW 2124.

An application will not be processed until the application fee has been received by WaterNSW.

Fees for a water related interest inquiry vary depending on the processing time frame you require are listed below.

* If you require priority or urgent processing of the application, email the completed form and pay the application fee by phoning us with your credit card details.

Licensing groundwater works, and monitoring the levels of extraction, helps us to sustainably manage our groundwater sources, protecting their quality and the ecosystems that depend on them.

Data gained from drilling a bore is collated in a database of groundwater works in NSW which provides information on the location, quantities and quality of water in the aquifer and the local geology.

Records on existing groundwater works, including bores, wells and excavations can be found at Australian Groundwater Explorer and Real Time Data.

The Water Management Act 2000 requires landholders to hold:

• a water access licence to take the water - unless the water is to be taken to use under a basic landholder right
• a water supply work approval to construct a bore, well or spear point
• a water use approval to use the water - unless the water is for use under a basic landholder right.

If you are engaging a driller, you are responsible for ensuring that the bore is drilled by a person who holds a current NSW driller's licence. Additionally, the licence class must be appropriate for the type of drilling to be undertaken.

For information on water access licence dealings in water sources managed by groundwater sharing plans, go to Dealings and trade.