Water Rights and Property in NSW: What to Know
For rural landowners, water can be as valuable as the land itself. So what are water rights, and how do water rights in NSW work? Owning land does not automatically give you unlimited rights to the water on it.
What are water rights?
Water rights are the legal rights to take and use water — from rivers, streams, dams and bores. In NSW, water is a regulated resource, and the right to take it for many purposes is controlled by a licensing and allocation system rather than being an automatic incident of land ownership.
Water Rights NSW: Often Separate From the Land
A crucial point about water rights in NSW: entitlements can be separate from the land. A water access licence may be owned and traded independently of the property, so the water you assume comes with a property may not be included in the sale. This makes checking the water position a critical part of rural due diligence.
Basic landholder rights
Landholders do have certain limited rights to take water for specified basic purposes in some circumstances — for example some domestic and stock use — without a licence. These are limited and generally do not cover irrigation or larger commercial use, which require an entitlement.
Frequently asked questions
What are water rights?
They are the legal rights to take and use water from sources such as rivers, dams and bores. In NSW, taking water for many purposes requires an entitlement under a regulated licensing system.
Do water rights come with the land in NSW?
Not necessarily. Water entitlements can be owned and traded separately from the land, so they may not be included in a property sale.
Can I use bore or river water on my rural property?
Some limited basic landholder rights exist for certain domestic and stock purposes, but larger-scale or irrigation use generally requires an entitlement.
Buying rural land? Check the water with Leyden Legal
Water is one of the most important and misunderstood aspects of rural property. Leyden Legal helps farmers and landowners across Tamworth, Manilla and the North West understand their water position before they buy.
Contact Leyden Legal today for advice on water and rural property.
This article provides general information only and is not legal advice. Water law is complex and fact-specific. Please seek tailored legal advice before acting.
