WATER MANAGEMENT ACT 2000 - SECT 237
Transformation of member's water entitlements
WATER MANAGEMENT ACT 2000 - SECT 237
Transformation of member's water entitlements
237 Transformation of member's water entitlements
(1) 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.
(2) On transformation of the whole or part of
a member's water entitlement to an access licence--
(a) 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
(b) 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).
(3) 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--
(a) the person ceases to be a member of
the trust, and
(b) the trust must not fix rates and charges in respect of the
person's landholding for that water (other than termination charges).
(4) 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.
(5) 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.
(6) Without limiting
subsection (5), the following kinds of security may be required by the trust--
(a) a charge over a part of an irrigation right that is not transformed,
(b)
a charge over an access licence or other entitlement to water acquired by the
person and resulting from the transformation,
(c) a guarantee by an
authorised deposit-taking institution,
