The test for 'reasonable necessity' under s 88K(1) of the Conveyancing Act 1919 (NSW) requires consideration of the effect on the servient tenement: the greater the burden, the stronger the case of reasonable necessity required. The applicant must demonstrate the proposed development is appropriate to the area and economically rational, and must address alternative methods of achieving the development. An easement cannot be imposed subject to an undertaking to extinguish it if future events do not occur; conditions must be specified in the order itself. Compensation is assessed on a before-and-after diminution in value basis, and uncertainty as to future development does not preclude assessment of adequate compensation.
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