(1)  Subject to subsection (5) , the Minister may, at the request of a responsible water entity or where the Minister considers it necessary to ensure the due administration of a water district, impose conditions on, or vary the conditions of, an approval under section 176 .

(2)  Where, in the case of a responsible water entity that is not an electricity entity, the Minister has exercised his or her powers under subsection (1) without the agreement of the water entity, the Minister must give written notice of the conditions or variation of conditions and of any rights of review or appeal under Part 14 to the water entity.

(3)  Where, in the case of a responsible water entity that is an electricity entity –

(a) the Minister has exercised his or her powers under subsection (1) without the agreement of the electricity entity; and

(b) the electricity entity suffers damage, is required to pay compensation or otherwise incurs a liability arising from the exercise of those powers –

the electricity entity is entitled to compensation to be paid by the Minister.

(4)  For the purposes of subsection (3)  –

(a) compensation is to be paid from the Public Account without further or other appropriation than this section; and

(b) in default of agreement between the Minister and the electricity entity, the arbitral tribunal is to be nominated by the president for the time being of the Australian Centre for International Commercial Arbitration; and

(c) the amount of compensation is to be determined in accordance with the Commercial Arbitration Act 2011 .

(5)  If any condition or variation proposed would have a significant effect on the administration of a water district that is not a hydro-electric district or a material adverse impact on an owner or occupier of land in the district, the Minister must give notice of the proposed condition or variation and invite written representations in accordance with section 174(2) .

(6)  The Minister must take into account any representations received following the notice in considering the proposal to impose or vary a condition.