For many rural and lifestyle properties, water is just as important as the land.  An orchard or vineyard without irrigation water is a different proposition to that with a reliable supply.  Sellers commonly refer to “water rights” but there can be significant differences in legal arrangements, infrastructure and supply.

“Water right” options you may see on your rural property search could include:

1. Resource consent allowing water to be taken – essentially an authorisation to take and use water, subject to specified conditions (ie where can you take water from, maximum rate of take, volume, expiry date of consent etc)
2. Shares in an irrigation company – many irrigation schemes operate through companies or other entities.  Landowners hold shares representing an entitlement to receive irrigation water via a supply contract and/or company constitution. Schemes vary. It is essential to read and understand these documents
3. Contractual entitlement to receive an allocation of irrigation water – carefully review
4. A historical or deemed right – tread carefully; it may have expired
5. Infrastructure or delivery rights associated with an irrigation scheme – easements that provide for a right to convey water over property
6. A hybrid of the above options.

Water: What Should a Rural Purchaser in Central Otago Check

Don’t just rely on the statement – “irrigation water included.” If you are buying a rural property in our dry region, it is essential to check:

1. The water source (ie bore, river, stream, Lake Dunstan, water race etc)
2. Legal authority for taking the water and on what conditions, including expiry
3. Who currently owns the consent
4. Quantity of water that can be taken
5. That the water is physically deliverable
6. What happens when property is subdivided.

Where the listing says “water included” that is just the beginning of your due diligence. Not the end.

We can assist with all of your property title, consent and irrigation due diligence, and subdivision requirements.