(1)  In carrying out its responsibilities for the administration of a riverworks district, hydro-electric district or drainage district, a responsible water entity must do as little damage as possible and must pay compensation for the damage.

(2)  If a claimant and the responsible water entity do not agree on the amount of compensation payable under subsection (1) , the claim for compensation is to be determined –

(a) if it is a small claim, by the small claims division of the Magistrates Court; or

(b) in any other case, as if it were a disputed claim under the Land Acquisition Act 1993 .