Water Management Act 2000 No 92
Current version for 1 March 2013 to date (accessed 24 May 2013 at 01:46)
Chapter 4Part 4

Part 4 Private water trusts

Division 1 Preliminary

220   Application of Part

This Part applies to all private water trusts under Part 3 of the former Water Act 1912 that were in existence immediately before the repeal of that Part, but does not authorise the establishment of any new private water trusts.

221   Definitions

In this Part:

landholder’s water entitlement means the part of the share component of an access licence held by or on behalf of a private water trust that is available to a landholder for irrigation.

member, in relation to a private water trust, means a member appointed or elected under section 223.

private water trust means a trust constituted under Part 3 of the former Water Act 1912.

ratepayer means person paying rates in respect of land within a water supply district.

water supply district means the district in respect of which a private water trust is constituted.

222   Requirements for access licences and approvals

Nothing in this Part authorises a private water trust or landholder to do anything for which this Act requires an access licence or approval unless the private water trust or landholder holds an appropriate access licence or approval.

Division 2 Private water trusts

223   Appointment and election of members

(1)  For private water trusts with 3 members, 1 is to be appointed by the Minister, and 2 are to be elected.
(2)  For private trusts with 5 members, 2 are to be appointed by the Minister, and 3 are to be elected.
(3)  One of the members appointed by the Minister is to be appointed as chairperson.
(4)  The regulations may make provision for or with respect to:
(a)  the conduct of elections for the elected members of a private water trust, and
(b)  other matters concerning the constitution and procedure of a trust.

224   Alteration of water supply districts

(1)  If two-thirds of the landholders of lands within any area sign and forward to the Minister a petition that such area be included in a water supply district, the Minister must, unless of the opinion that the petition should be refused, refer the petition to the members of the private water trust for the district.
(2)  On receipt from the members of notice that the proposed alteration has been approved by a special general meeting of the voters of the trust, of which at least 14 days’ notice has been given in the prescribed manner, the Minister may, by notification in the Gazette, alter the boundaries of the district accordingly.

225   Removal of land from water supply district

(1)  If any lands within a water supply district have not benefited from the water management works of the private water trust for a continuous period of 3 years or more and the landholder of such lands applies to the Minister for the lands to be excised from the water supply district, the Minister must refer the application to the members of the private water trust for the district.
(2)  The members must refer the question of the proposed excision of the lands from the water supply district to a special general meeting of the voters of the trust (of which at least 14 days’ notice has been given in the prescribed manner) and must convey to the Minister the decision of the voters.
(3)  The members must also advise the Minister as to:
(a)  the reasons why such lands have not so benefited or have ceased so to benefit, and
(b)  the practicability or otherwise of extending or improving the water management works of the trust so as to benefit the said lands, and
(c)  the effect that the granting of the request would have on the general administration and finances of the trust.
(4)  The Minister is then to decide whether or not the whole or any part of the lands referred to in the request are to be excised from the water supply district.
(5)  The Minister may, by notification in the Gazette, excise such lands from the water supply district and on the publication of such notification the water supply district is taken to be altered accordingly.

226   Union of trusts

On the joint application of members of any two adjoining water supply districts, duly approved by a majority of the voters of each district at separate special general meetings (of which at least 14 days’ notice has been given in the prescribed manner), the Minister may, by notification in the Gazette, transfer any part of one water supply district to the other water supply district.

Division 3 Functions of members

227   Duties of members

The members of a private water trust have the function of maintaining and administering the trust’s works.

228   Powers and duties of members

(1)  The members of a private water trust have and may exercise the following functions:
(a)  to establish and maintain a management program for the water supply district,
(b)  to maintain in a state of efficiency the water management works under their charge and renew such works if necessary,
(c)  to fix and levy rates to provide for the maintenance, renewal and management of such water management works, and for interest, charges, and a sinking fund,
(d)  to keep proper accounts of all money received and paid,
(e)  to pay to the Treasury, at such times as may be fixed by the Minister, the interest and charges payable by them, and if necessary make due provision for a sinking fund,
(f)  to appoint, with the approval of the Minister, such officers or employees as may be required,
(g)  to borrow money, but only as provided in this section.
(2)  A loan by way of limited overdraft may be obtained for the purpose of meeting necessary legitimate expenditure prior to the collection of rates or for the purpose of carrying out urgent works of renewal, or replacement, or other emergency, for which sufficient funds are not immediately available.
(3)  On application by the members of a private water trust the Minister may issue a certificate of limit of overdraft, in which must be named the purpose in respect of which the loan may be obtained and the limit of amount to be borrowed.
(4)  The sum to be stated in the certificate as the limit of the overdraft is in the discretion of the Minister, but must not exceed the estimated amount required for the purpose mentioned therein plus 10% of such amount.
(5)  The loan is subject to any conditions inserted by the Minister in the certificate, and the money borrowed is taken to be secured on the income of the trust and must be repaid within the time fixed in the certificate.
(6)  All sums received on account of a trust’s sinking fund must be carried by the Treasurer to a special account, to be called “The Water Supply Loan Redemption Fund”, and all other sums to the Consolidated Fund.
(7)  The members of a private water trust may on application by any ratepayer defer or suspend payment of rates by the ratepayer for such period or periods and on such terms and conditions as the Minister may approve.

229   Supply of water

(1)  The members of a private water trust may for the more beneficial use or efficient distribution of the water supplied by the trust’s water supply works:
(a)  cease to supply water through any portion of the works in the water supply district or to any lands within such district, or
(b)  deviate the course of a water supply work or otherwise alter in any way the works in the water supply district.
(2)  Before taking any such action, the members must obtain the written consent of any ratepayer:
(a)  whose benefit from those works will be diminished by the action of the members, or
(b)  the supply of water or means of supply of water to whose lands will be affected,
      and must also obtain the written approval of the Minister of the members’ proposed action.
(3)  The members of a private water trust may cut off or withhold the supply of water to any land:
(a)  if any meter used to measure such supply or any outlet is out of repair or, in the opinion of the members, unsatisfactory for the expeditious or effective supply of water to such land, or
(b)  if, in the opinion of the members, such course is necessary owing to drought or any accident or other unavoidable cause, or
(c)  if the landholder or person requiring a supply of water neglects to comply with the lawful requirements of the members as to the installation of outlets or meters or instruments for measuring the quantity of water, or
(d)  if the landholder or person requiring a supply of water neglects to comply with any lawful requirements of the members to repair or alter water connections, outlets, channels, ditches, pipes, fittings or appliances connected to the water management works under the control of the members, or
(e)  if the landholder of the land fails to take such steps as may be necessary to ensure compliance with any order or public notice of the members requiring consumers of water to economise its use in time of drought or scarcity of supply, or
(f)  if any rates fixed and levied in respect of the land are, after the due date of payment, unpaid and approval to the supply of water to the land being cut off or withheld is given:
(i)  if the trust was constituted by 3 members, by the chairperson of the trust and all the elected members, or
(ii)  if the trust was constituted by 5 members, by the chairperson of the trust and a majority of the elected members.
(4)  If the Minister:
(a)  reduces or discontinues the supply of water to the members of a private water trust, or
(b)  directs the members of a private water trust:
(i)  to reduce the quantity of water being taken or diverted by them from any water source, or
(ii)  to discontinue the taking or diverting of water from a water source,
      the members may reduce or cut off or withhold the supply of water to any land.
(5)  The cutting off or withholding or reduction of the supply of water by the members of a private water trust under this section does not affect the liability of the ratepayer in respect of the rates on the land the supply of water to which has been cut off, withheld or reduced.

230   Power of members to enter and inspect

In the exercise of their functions, by themselves or their officers, the members of a private water trust may enter any land within the water supply district and make any inspection or survey they consider necessary, and effect repairs or alterations to any water management works, but in so doing must avoid, as far as practicable, causing any loss, injury or damage.

231   No compensation

No compensation is payable in connection with a private water trust’s exercise of its functions under this Part.

Division 4 Rating

232   Rates

(1)  For the purpose of providing money in connection with the exercise of their functions under this Part, the members of a private water trust may fix and levy rates on the lands within the water supply district as follows:
(a)  in connection with the supply of water for stock purposes:
(i)  a rate per hectare of the land benefited by the water management works must be fixed, or
(ii)  if water is supplied down a natural channel, a rate per kilometre of the lands so benefited, measured according to the frontage to the channel, may be fixed,
      which rate may vary in proportion to the benefit received,
(b)  in connection with the supply of water for domestic purposes, a rate for each separate holding in the water supply district must be fixed, which rate may vary in proportion to the benefit received,
(c)  in connection with the construction and maintenance of flood works, a rate per hectare of the land benefited by the works must be fixed, which rate may vary:
(i)  according to the distance of the land from works for the prevention of floods or the control of flood waters, and
(ii)  in proportion to the benefit received,
(d)  in connection with irrigation, a rate must be levied on the land within the water supply district:
(i)  that is suitable for production under irrigation, and
(ii)  that is accessible to the works of the trust by means of recognised methods of irrigation.
(2)  If land is liable for rates under subsection (1) (d), the members of a private water trust may, in fixing the rate, fix different amounts for different parts of the land, having regard to:
(a)  the fact that any such part is or is not actually used for production under irrigation, or
(b)  the type of production under irrigation for which any such part is used.
(3)  In any case for which this section does not provide, a rate per hectare of the land benefited, directly or indirectly, by the works must be fixed yearly, and must, as far as practicable, be in proportion to the benefit received.
(4)  In the case of a supply for more than one purpose, separate rates may be fixed, calculated on the basis set out for each such purpose.
(5)  All rates are a charge on the land in respect of which they are levied and are payable by the landholder.
(6)  Any landholder aggrieved by the amount of a rate may appeal to the Local Court, which must hear and determine the matter, and may confirm or vary such amount.
(7)  If in any such appeal the Local Court reduces the amount at which the appellant is rated, it must increase the other ratings of the trust in such amounts as it thinks just, if it considers such course necessary, in order to secure that the total amount to be received by the trust for rates is not to be diminished by the reduction.
(8)  The provisions of this section have effect despite anything contained in section 42 of the Real Property Act 1900.

233   Supplementary rating powers

(1)  If the members of a private water trust are unable to meet the cost of administration or of an extension or improvement of the works under their control or other liability, they may in writing petition the Minister to approve an increase in the maximum rate that may be assessed by them, and must set out in such petition the reasons for their request.
(2)  The Minister must inform the members whether or not the Minister is prepared to grant their petition and, if so, must inform them of the maximum rate that the Minister is prepared to approve.
(3)  The members must submit the proposed increase in maximum rate that the Minister is prepared to approve to a special general meeting of the voters of the trust (of which at least 14 days’ notice has been given in the prescribed manner).
(4)  The members must report to the Minister whether an affirmative or negative vote has been carried at the meeting.
(5)  If an affirmative vote has been cast the Minister must grant the petition of the members by notification sent to them and published in the Gazette, and thereafter the members may assess rates to the maximum approved by the Minister.

234   Surplus water

When a private water trust has any surplus water that is not required for the purpose for which the trust was constituted, the trust may sell the water, by measure or otherwise:
(a)  to any ratepayer for any other purpose, or
(b)  if no ratepayer requires it, to any other person.

235   Accounts

(1)  The members of a private water trust must submit to the Minister once every year, and at such other times as the Minister may direct, an audited statement of the accounts of the trust.
(2)  The Minister may, if of opinion that the audited statement is defective or unsatisfactory, appoint an auditor to prepare a proper statement of accounts, at the cost of the trust.

Division 5 Effect of new subdivisions

236   Supply of water to new holdings resulting from subdivisions

(1)  If a holding is subdivided, a new holding resulting from the subdivision is not entitled to a supply of water from a private water trust’s water supply works until a date determined by the trust (not being a date earlier than the date on which the board became aware of the disposition of that new holding).
(2)  If rates for a period or year ending on 30 June, being the period or year during which the date determined by the trust under subsection (1) occurred, have not, before the date so determined, been levied in respect of the holding that was subdivided, the trust must levy the rates for the whole of that period or year in respect of each of the new holdings that resulted from the subdivision, and that was disposed of.

237   Additional works required as a result of subdivision

(1)  The person who, immediately before the disposition of a new holding resulting from a subdivision of land within a private water trust’s water supply district, was the landholder of the holding (the previous landholder) must construct at his or her own cost such works as are necessary to provide:
(a)  means of conveying water to the new holding from the trust’s water supply works, and
(b)  means of access from roads to any works of the trust or any works provided for the purposes of paragraph (a) if that access would not be available except by crossing a channel of the water supply district, and
(c)  means of access across a channel of the water supply district to the new holding if that means of access is required by reason of the subdivision.
(2)  All works to be constructed under subsection (1) must be constructed before the new holding is disposed of or within such period after the disposition of the new holding as the trust may in any particular case allow.
(3)  All works constructed or to be constructed under subsection (1) must be constructed in accordance with the approval in writing of the trust in respect of location, design, form, dimensions and construction.
(4)  At the request of the previous landholder, the trust may undertake, at the landholder’s cost, the construction of any works required by this section.
(5)  The trust may construct such works as have not been constructed by the previous landholder, and any costs and expenses are payable to the trust either by the previous landholder or by the new landholder, as the trust may determine.
(6)  If any part of the costs and expenses referred to in subsection (5) is recovered by the trust from the new landholder, the new landholder may recover from the previous landholder the whole or that part of those costs or expenses, as the case may be.
(7)  On their completion, the control and management of any works constructed under this section is vested in the trust.

Division 5A Water entitlements

237A   Water entitlements of landholders

(1)  The members of a private water trust must, if requested to do so in writing by a landholder of a landholding within the water supply district of the trust to which water is supplied by the trust for irrigation, determine the landholder’s water entitlement.
(2)  The members of the trust must have regard to the following matters when determining the landholder’s water entitlement:
(a)  the nature of agricultural activities on the land,
(b)  the amount of water currently supplied to the landholder,
(c)  any present or past water sharing arrangements applicable to the landholder,
(d)  any other matter they consider relevant,
(e)  any other matter prescribed by the regulations.
(3)  A determination may specify the different parts of the landholder’s water entitlement that are available to the landholder for different purposes.
(4)  A determination must be in writing and comply with the requirements prescribed by the regulations. Notice of a determination must be given in writing by the members of the trust to the landholder.
(5)  A determination may be varied or redetermined only on a further application made by the landholder within 3 months of the determination or in the circumstances prescribed by the regulations.
(6)  A person must not participate in a determination of a landholder’s water entitlement if the person or a member of the person’s immediate family (within the meaning of the regulations) has an interest in the entitlement.

237B   Transformation of landholder’s water entitlement

(1)  The holders of an access licence for the water supply district of a private water trust may make an application under Division 4 of Part 2 of Chapter 3 for the purpose of wholly or partly transforming a landholder’s water entitlement into an access licence under this Act.
(2)  On transformation of the whole or part of a landholder’s water entitlement to an access licence:
(a)  the landholder is not entitled to vote (as a member of the trust or as a voting member in the water supply district) on any matter relating to the transformation of one or more other landholders’ water entitlements or the supply of water to landholders who have not transformed their water entitlements, and
(b)  the members of the trust and the trust may continue to exercise functions in relation to any works that are located on the landholding for which they exercised functions immediately before the transformation (whether or not the trust is to deliver the landholders’ water entitlement under the access licence or the landholding remains in the water supply district of the trust).
(3)  If the whole of a landholder’s water entitlement is transformed and the landholder does not have a right to the delivery of that water by the trust:
(a)  the landholder is not entitled to vote as a landholder within the water supply district of the trust, and
(b)  the trust must not fix rates and charges in respect of the landholder’s landholding for that water (other than termination charges).
(4)  The regulations may make provision for or with respect to:
(a)  other circumstances in which a landholder whose landholder’s water entitlement has been transformed ceases to be a voting member in the water supply district of the trust, and
(b)  the voting rights of landholders who have partially transformed their landholders’ water entitlements.
(5)  The members of a trust may require a landholder to provide security as a condition of consent to transformation of the whole or part of the landholder’s water entitlement, subject to the regulations.
(6)  Without limiting subsection (5), the following kinds of security may be required by the members of a trust:
(a)  a charge over a part of an irrigation right that is not transformed,
(b)  a charge over an access licence or other entitlement to water acquired by the person and resulting from the transformation,
(c)  a guarantee by an authorised deposit-taking institution,
(d)  a deposit lodged with the trust.
(7)  In addition to any other charges it may fix under this Part, the members of a trust may fix the following charges:
(a)  (Repealed)
(b)  charges payable by a landholder for the delivery of water after transformation of the whole or part of the landholder’s water entitlement.

Division 6 Miscellaneous

238   Minister may remove members and Governor may dissolve trust

(1)  In the event of any delay in the election of members of a private water trust or in the event of any default by members of a private water trust in the discharge of their duties under this Part or of the ratepayers failing to elect members, or the required number of members, the Minister may, by notification in the Gazette:
(a)  remove a member or members from office, and direct the election of another member or other members, or
(b)  remove a member or members (if any) and assume all of the functions of the members, and may appoint a manager of the affairs of the trust.
(2)  The Minister may at any time direct the election of members of a private water trust, and on such election all of the functions of the members are revested in the members.
(3)  (Repealed)
(4)  The regulations may make provision for or with respect to the winding up of a private water trust and for the disposal of any residual assets of the trust.
(5)  If the Governor is satisfied that the winding up of a private water trust has been completed under this section, the Governor may, by proclamation published in the Gazette, abolish the trust.

238A   Termination charges

In addition to any other charge that they may fix under this Part, the members of a private irrigation trust may fix termination charges payable by a landholder or former landholder in connection with the trust ceasing to supply water to the landholder or former landholder (whether because of the transformation of the landholder’s water entitlement to an access licence or otherwise).

239   Regulations

The regulations may make provision for or with respect to the following matters:
(a)  the election of members of a private water trust and the making and revision of the rolls of voters, and the mode of voting,
(b)  the intervals within which meetings of members of a private water trust must be held,
(c)  the procedure at such meetings,
(d)  the appointment, payment, and dismissal of officers and employees of a private water trust,
(e)  the fixing and notifying of rates,
(f)  the hearing of appeals,
(g)  prescribing the method or methods to be adopted to determine the quantity of water for which payment is to be made by the trust,
(h)  the keeping of the accounts of private water trusts,
(i)  regulating the payment to the Crown of interest and charges by private water trusts,
(j)  regulating special meetings of voters of a private water trust in pursuance of this Part.
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