As part of its Housing Approval Reform Action Plan (Action Plan), the New South Wales Government has introduced a temporary water licensing exemption for some housing and other infrastructure developments. The Government’s aim is to cut red tape, reduce costs for developers and accelerate the delivery of 377,000 new homes by 2029, according to the Action Plan.
A water access licence is generally required to extract water to use for irrigation, industrial or commercial purposes.
Under these reforms to the Water Management (General) Regulation 2018 (NSW), eligible projects in some coastal areas of New South Wales can now extract over 3 megalitres of groundwater for dewatering during construction without requiring a water access licence.
The exemption allows a person to take up to 3 megalitres of groundwater through an aquifer interference activity per authorised project per water year without needing to obtain a water access licence, provided the water is not taken primarily for consumption or supply, and relevant records are retained and notifications made to the Natural Resources Access Regulator within the requisite time frame.
This a positive step to fast-track much-needed housing and infrastructure in New South Wales, however, developers are reminded that they must meet strict eligibility, monitoring and reporting obligations, including notifying the Natural Resources Access Regulator of all water taken. Groundwater extraction must also be authorised by, and a developer must comply with the conditions of, a water supply works approval granted under the Water Management Act 2000 (NSW).
If you are looking to take advantage of this exemption, it is worth understanding whether and how it applies to your specific development. Significant penalties exceeding $2 million may apply for breaches of the Water Management Act 2000 (NSW) if you fail to obtain and comply with the required licences and approvals. If you need advice regarding your eligibility or obligations, contact a member of our Planning and Environment Team with expertise in New South Wales water regulation here