A NSW Government website

Exemptions for water licences and approvals

Drought works

Apply for a drought works exemption and learn about licensing processes for drought-related water supply works.

Ensuring water supply during droughts

During periods of severe drought, water utilities face immense pressure to ensure continuous water supply to their communities. The NSW Government acknowledges that in such circumstances, these utilities may have to explore alternative water sources.

To address urgent demand to maintain water supplies for local communities during severe drought, any relevant public authority, according to the Water Management Act 2000, can apply for an exemption under clause 39A of the Water Management (General) Regulation 2018.

What does the exemption do?

This exemption relieves drought-affected communities in NSW from requiring a water supply work approval for the construction or use of a water supply work that provides immediate relief from drought.

Under clause 39A, an exemption can only be granted if:

  • conditions of drought exist
  • granting the exemption is in the public interest, given those conditions.

It does not authorise ongoing use of a water supply work and ceases to have effect once drought conditions no longer exist at the location of the work. In addition, a water access licence will still be required for any water taken unless otherwise exempt.

How to apply

To apply for this exemption, a relevant public authority must submit an application to the department. The application must:

  • explain why the water supply work is needed, and the timeframes required to obtain water supplies
  • outline the drought conditions and why the work is in the public interest
  • explain why the public authority has applied for this exemption
  • include details of the work to be used to supply water, including the location, type and size of work, and installation and operation requirements
  • provide details of the water source from which the work may take water.

Submit your application

To apply for a drought work exemption, email your application to: waterlicensing.servicedesk@dpie.nsw.gov.au

We may ask you for additional information to help us assess your application.

Frequently asked questions

Terms of a drought work exemption notice

Once approved, the exemption is granted in writing through an ‘exemption notice’. This notice will specify related terms and conditions, and the exemption’s validity period.

The exemption will be in effect for:

  • the period specified in the exemption notice; or
  • if no period is specified in the exemption notice, then 12 months following the date the exemption is granted.

Exemption conditions

There are several conditions associated with the drought works exemption.

The public authority must notify the department in writing of several factors within the ‘relevant period’, as specified in the exemption notice, or three months before the exemption expires (if no specified period is provided). These factors include:

  1. The water supply work plan, and specifically, if there is an intention to continue using the work after the exemption expires.
  2. If the public authority intends to stop using the water supply work on or before the exemption’s expiry, the date when it will cease using the work and its plans for the work afterwards (such as capping, decommissioning, or removal).
  3. If the public authority plans to continue using the water supply work after the exemption expires, and whether they intend to:
    • apply for an extension of the period of the exemption
    • rely on another exemption
    • apply for a water supply work approval.

The department may also impose further conditions on the exemption. These might relate to the:

  • location of the work
  • water source from which water may be taken by the work
  • construction standards with which the work must comply
  • maximum size of the work
  • reporting requirements on completion of the construction of the work.

Considerations for future use of water supply work

While the exemption under the Regulation serves as a temporary response to drought conditions in NSW, it does not grant ongoing authorisation for the use of a water supply work.

The relevant public authority will need to consider its plans for long-term water supply work, including if and how any ongoing use will be authorised.

Possible options include:

  • apply for an extension of the exemption if drought conditions persist
  • rely on another exemption available under the Water Management Act 2000 or other relevant regulations
  • apply for a water supply work approval.

As a condition of the exemption, the relevant public authority must inform the department in writing about its plans for the work. This includes indicating whether they intend to continue using the work after the exemption expires or if it will be decommissioned.

Will a water supply work approval be granted after this exemption expires?

After an exemption under clause 39A of Water Management (General) Regulation 2018 expires, there is no guarantee that a water supply work approval will be granted.

The relevant public authority must submit a separate application for the approval.

Can the exemption be extended?Can the exemption be extended?Can the exemption be extended?Can the exemption be extended?

Yes. To apply for an extension of an exemption, the relevant public authority must apply to the department explaining:

  • why an extension of the exemption is required
  • how the extension request aligns with the plans previously provided for the water supply work, specifically if the relevant public authority intends to continue using the work after the exemption expires.

Completed applications should be submitted to waterlicensing.servicedesk@dpie.nsw.gov.au.

If the application is approved, the department will issue an ‘extension notice’ in writing to the public authority, notifying them of the extended exemption period.

What is a ‘relevant public authority’?What is a ‘relevant public authority’?

For the purposes of this exemption, a ‘relevant public authority’ is a public authority (within the meaning of the Water Management Act 2000) that supplies water to the public.

This includes WaterNSW and local councils’ local water utilities.

Is this exemption the only option available to relevant public authorities during drought?

No. It may be a better option for a relevant public authority in the long term to apply for a water supply work approval. This exemption is only a short-term measure and is granted under specific circumstances.

The Regulation provides for a streamlined process for water supply work approval applications that are intended to be used for:

  • short periods (less than six months)
  • drought relief purposes.

What does a relevant public authority need to consider about the future use of the water supply work?

The exemption under the Regulation is a short-term response to drought conditions in NSW. It does not authorise ongoing use of a water supply work.

A relevant public authority will need to consider its plans for the water supply work in the long term.

This includes if, and how, any ongoing use will be authorised. Possible options are to:

  • apply for an extension of this exemption if the drought conditions are continuing
  • rely on another exemption under the Water Management Act 2000 or the regulations
  • apply for a water supply work approval.

It is a condition of this exemption for a relevant public authority to notify the department in writing of its plans in relation to the work, including whether it proposes to continue to use the work after the exemption expires or if it is to be decommissioned.

Will a water supply work approval be granted after this exemption expires?

There is no guarantee that a water supply work approval will be granted after an exemption under clause 39A of the Regulation expires.

A relevant public authority would need to apply for the approval separately.

Frequently asked questions about drought works approvals

Download the FAQs (PDF. 140KB)

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