5. TRADING OF PERMITS

The trading of permits through market-type transactions is a policy issue which is generally addressed in primary legislation. Trades may only be permitted between landowners in an irrigation district. Alternatively, permits may be separated from land, and be transferred to non-landowners. In the example below, subordinate legislation prescribes the administrative details and requirements for the perfection of transactions between landowners in the same irrigation district, or in two different irrigation districts.

AUSTRALIA - VICTORIA - Water (Permanent Transfer of Water Rights) Regulations, 2001

7. Permanent transfer of water rights

(1) An application for approval of the permanent transfer of water rights to the owner or occupier of another holding within the same irrigation district or within another irrigation district must be in the form set out in

Schedule 3 and must, in addition to the requirements of the Act, be accompanied by-

(a) a notice of agreement in the form set out in Schedule 4; and

(b) a notice of consent in the form set out in Schedule 5, for the holder of each prescribed interest in the holding; and

(c) the relevant fee prescribed in Schedule 7.

(2) An application for approval of the permanent transfer of water rights to the owner or occupier of any land outside an irrigation district must be in the form set out in Schedule 6 and must be accompanied by-

(a) the things referred to in paragraph (b) and where applicable paragraph (c) of sub-regulation (1); and

(b) in the case of a transfer to land elsewhere in Victoria a copy of an application under section 51 of the Act to take and use an equivalent volume of water to that proposed to be transferred; and

(c) in the case of a transfer to land in another State under section 226AA of the Act, an application for an entitlement in that other State.

8. Procedure with respect to applications

(1) An application referred to in regulation 7(1) must be made to the buyer's Authority and, if the buyer's Authority is different from the seller's Authority, then-

(a) the buyer's Authority must give to the seller's Authority a copy of the application accompanied by the relevant fee prescribed in Schedule 7; and

(b) the seller's Authority must inform the buyer's Authority within 28 days after receiving the copy of the application whether it has any objections to the proposed transfer; and

(c) if the application is approved, the two Authorities must make all necessary arrangements between them to implement the transfer.

(2) An application referred to in regulation 7(2) must be made to the seller's Authority.

12. Restriction on approval of certain applications

An application referred to in regulation 7(2) must not be approved unless the application referred to in regulation 7(2)(b) or 7(2)(c) has been approved.

14. Other terms and conditions

An Authority must not approve a transfer unless it is satisfied-

(a) that the buyer's land has adequate works for the supply of water; and

(b) that existing levels of service can be maintained unless, after consultation with the relevant Advisory Committee, it dispenses with this requirement in the particular case.

Schedule 3 - Form - Application for approval of permanent transfer of water rights within an irrigation district or to another irrigation district (Buyer's Authority) - See Appendix 1, page 317.

Schedule 4 - Form - Notice of agreement for permanent transfer of water rights (seller's authority) - See Appendix 1, page 317.

Schedule 5 - Form - Notice of consent to the permanent transfer of water rights (seller's authority) - See Appendix 1, page 318.

Schedule 6 - Form - Application for approval of permanent transfer of water rights outside an irrigation district (seller's authority) - See Appendix 1, page 319.

Schedule 7 - Form - Prescribed fees - See Appendix 1, page 320.