Water Act 2000

This section applies if—

a regulation provides for the dissolution of a category 2 water authority (the old entity) under section 691(1)(b); and

immediately before the dissolution, the old entity is the holder of a distribution operations licence (the DOL).

The regulation must identify a document (the old entity document) held by the old entity and available for public access on the old entity’s website before the dissolution.

The old entity document must set out—

the distribution arrangements for water distributed under the DOL by the old entity; and

the financial obligations, arising from the distribution arrangements, of the holder of any water allocation to whom water is distributed under the DOL.

The old entity document must fairly represent the distribution arrangements and financial obligations as in place before the dissolution of the old entity.

The old entity document may include additional provisions to facilitate implementing the arrangements and meeting the obligations, but the additional provisions must not be capable of operating to the detriment, in substance, of an allocation holder after the dissolution of the old entity.

After the dissolution of the old entity, the old entity document has effect as a contract (the distribution contract), relating to the distribution of water under the DOL, between—

any entity that becomes the DOL holder; and

the holder of each water allocation to whom water—

was distributed under the DOL immediately before the dissolution; and

continues to be distributed under the DOL.

Subsection (8) applies if—

a new water allocation comes into existence after the old entity is dissolved; and

water is or is to be distributed to the holder of the new water allocation under the DOL; and

a document, in the form of a contract, is held by the DOL holder as a document available for public access on the DOL holder’s website; and

the document relates to the distribution of water under the DOL to the holders of water allocations that are similar in type to the new water allocation.

The document has effect as a contract (also a distribution contract) between—

the DOL holder; and

the holder of the new water allocation.

The distribution contract applying to a water allocation has effect subject to any change agreed to by the DOL holder and the water allocation holder.

If the holder of a water allocation the subject of a distribution contract transfers or leases the water allocation to another person, the other person is bound by the distribution contract as in force between the DOL holder and the water allocation holder immediately before the transfer or lease.