Water Management Act 2000

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 member’s water entitlement into an access licence under this Act.

On transformation of the whole or part of a member’s water entitlement to an access licence—

the member is not entitled to vote (as a trustee) or as a member on any matter relating to the transformation of one or more other members’ water entitlements or the supply of water to members who have not transformed their water entitlements, and

the trust may continue to exercise functions in relation to any trust works that are located on the landholding (whether or not the trust is to deliver the member’s water entitlement under the access licence or the landholder remains a member of the trust).

If the whole of a person’s water entitlement is transformed and the person does not have a right to the delivery of that water by the trust—

the person ceases to be a member of the trust, and

the trust must not fix rates and charges in respect of the person’s landholding for that water (other than termination charges).

The rules may make provision for or with respect to other circumstances in which a person whose member’s water entitlement has been transformed ceases to be a member of the trust.

The trust may require a member to provide security as a condition of consent to transformation of the whole or part of the member’s water entitlement, subject to the regulations.

Without limiting subsection (5), the following kinds of security may be required by the trust—

a charge over a part of an irrigation right that is not transformed,

a charge over an access licence or other entitlement to water acquired by the person and resulting from the transformation,

a guarantee by an authorised deposit-taking institution,

a deposit lodged with the trust.