About the drought works exemption
The purpose of this exemption is to ensure a continuous water supply to communities during severe droughts. The department acknowledges that in such circumstances, water utilities may have to explore alternative water sources.
To address an urgent demand to maintain water supplies for local communities during severe drought, any relevant public authority can apply for an exemption under the Water Management Act 2000 and section 65 of the Water Management (General) Regulation 2025 (the Regulation).
What does the exemption do?
An exemption allows water utilities to carry out water supply work (construction and/or use) that provides immediate relief from drought without a water supply work approval .
An exemption can only be granted if:
- drought conditions exist, and
- it is in the public interest.
An exemption does not authorise ongoing use of a water supply work. The term of an exemption will be specified in the approval notice or, if no period is specified, then 1 year from when the exemption is granted. Note: a water access licence is still required for any water taken unless otherwise exempt.
Find information on the water access licence exemptions page.
How to apply
To apply for this exemption, a relevant public authority must provide the following information to the department:
- 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
- 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.
Send this information by email to: water.enquiries@dcceew.nsw.gov.au
We may ask you for additional information to help us assess your application.
Once approved, the exemption is granted in writing through an ‘exemption notice’. This notice will specify the terms and conditions, and the period of exemption.
Frequently asked questions
- The exemption notice will specify the terms and conditions of the exemption, including the period of exemption.
The exemption will be in effect for either:
- the period specified in the exemption notice, or
- if no period is specified in the exemption notice, then 1 year after the day on which the exemption is granted.
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 no later than three months before the day on which the exemption expires (if no specified period is provided). These factors include:
- The water supply work plan, and specifically, if there is an intention to continue using the work after the exemption expires.
- If the public authority intends to stop using the water supply work on or before the exemption’s expiry, the date on which it will stop using the work and its plans for the work afterwards (such as capping, decommissioning, or removal).
- If the public authority plans to continue using the water supply work after the exemption expires, and whether they intend to:
- apply to extend the period of the exemption
- rely on another exemption
- apply for a water supply work approval.
The exemption is also subject to the condition that the public authority must maintain the work or otherwise decommission the work. If the water supply work is a weir, the public authority must decommission the weir as soon as reasonably practicable after the conditions of drought for which the exemption was granted no longer exist. This condition continues to apply after the expiry of the exemption as a requirement on the public authority.
If the public authority does not do this, they are committing an offence, which allows for the maximum penalty under the regulations to be applied (20 penalty units = $2200). It is a continuing offence, which means that the public authority is committing an offence for each day they are in non-compliance.
The department may also impose further conditions on the exemption. These might relate to the:
- location of the work
- water source from which water will 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.
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 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 Regulation
- apply for a water supply work approval.
It is a condition of this exemption for a 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 intends to stop using the work on or before the expiry of the exemption.
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.
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.
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.
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.
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.
After an exemption under section 65 of Water Management (General) Regulation 2025 expires, there is no guarantee that a water supply work approval will be granted.
A relevant public authority would need to apply for the approval separately.
The meaning of a ‘public authority’ is described in the dictionary of the Water Management Act 2000.
This includes WaterNSW and local councils’ local water utilities.
For the purposes of this exemption, a ‘public authority’ does not include Landcom or the Superannuation Administration Corporation or their subsidiaries.
No. It may be a better option for a 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.