Overview of reforms to joint private work schemes
Reforms under the Water Management Amendment Act 2010:
- simplify the laws managing private irrigation boards, private drainage boards and private water trusts (schemes)
- give schemes more flexibility to make and amend their internal rules
- reduce the NSW Government’s role in schemes’ administrative matters
- convert private irrigation boards and private drainage boards to private water corporations.
As part of the reforms, we worked with schemes to develop clear and simple regulations and model rules.
A transition period to implement the reforms for joint private work schemes under the Water Management Amendment Act 2010 started on 1 March 2024 and finished on 1 March 2025.
During the transition period, schemes were required to take the following actions:
- hold an election – if the scheme was a private irrigation board or private drainage board, and the last election was before 1 March 2022
- adopt a works plan by voting at a general meeting
- adopt scheme rules by voting at a general meeting.
These actions were necessary to ensure schemes transitioned to the new governance framework.
If your scheme did not adopt rules by 1 March 2025, the model rules became the scheme’s rules.
If your scheme has not adopted a works plan, we may appoint someone to prepare your scheme’s works plan and recover the cost from the scheme.
We may also consider whether failing to hold an election, or adopt a works plan or rules is a serious contravention of the Water Management Act 2000 or regulations. If schemes are regularly and seriously contravening the Act or the regulations, we may remove the board or trustees and appoint an administrator to manage the scheme. Administrators can recommend that schemes be wound up.
For schemes that have been inactive for some time, we may consider winding up the scheme.
Reforms that started on 1 March 2024 automatically converted:
- private irrigation districts governed by private irrigation boards into private water corporations
- private drainage unions governed by private drainage boards into private water corporations.
The private water corporations operate in the same area and have the same name as the boards.
The reforms did not:
- Change any Australian business names. Australian business names cannot be changed once they have been registered with the Australian Securities and Investments Commission (ASIC). If your scheme wants to trade under a different name, you must register a new business name with ASIC. You can find more information about updating your business name details (including your contact information) and cancelling or registering business names at ASIC.
- Change any Australian business number (ABN). ABNs are unique 11 digit numbers which cannot be changed once they have been registered with the Australian Business Register. You can find more information about updating your ABN details (including your contact information) and cancelling or applying for an ABN at the Australian Business Register.
- Automatically make your scheme, or require your scheme to become, a registered company or registered Australian body under the Commonwealth Corporations Act 2001.
- Change the membership of your scheme. Existing members automatically became members of the corresponding private water corporation if they were the:
- landholder of land within a private irrigation district before the new laws started
- landholder of land within a private drainage district before the new laws started.
Security for unpaid rates and charges
The reforms introduced new powers for private water corporations to require security for unpaid rates and charges. To use these new powers, corporations must include requiring security in their rules. The rules must be consistent with the regulations.
Investigations
The reforms introduced new investigation powers for private water corporations.
Private water corporations may appoint a person to act as an authorised officer. An authorised officer may enter land at any reasonable time to investigate a suspected breach of an irrigation, water supply, water distribution or drainage agreement.
Enforcement
The reforms introduced new enforcement powers for private water corporations. Corporations can impose a charge on a person who has:
- knowingly taken water from water management works owned by, or under the corporation’s control and management in a contravention of the Act, the regulations, the rules or an agreement with the corporation
- destroyed, damaged or interfered with works owned, or under the control of, the corporation.
To exercise these new powers, corporations must apply to the Natural Resources Access Regulator for approval.
Reforms that started on 1 March 2024 did not:
- Change the names of private water trusts or areas where private water trusts operate.
- Change any Australian business names. Australian business names cannot be changed once they have been registered with the Australian Securities and Investments Commission (ASIC). If your scheme wants to trade under a different name, you must register a new business name with ASIC. You can find more information about updating your business name details (including your contact information) and cancelling or registering business names at ASIC.
- Change any Australian Business Number (ABN). ABNs are unique 11 digit numbers and cannot be changed once they have been registered with the Australian Business Register. You can find more information about updating your ABN details (including your contact information) and cancelling or applying for an ABN at the Australian Business Register.
- Automatically make your scheme, or require your scheme to become, a registered company or registered Australian body under the Commonwealth Corporations Act 2001.
- Change the membership of your scheme.
The reforms have changed some terminology. Before 1 March 2024, private water trusts were managed by elected members. Elected members are now called trustees .
Security for unpaid rates and charges
The reforms introduced new powers for private water trusts to require security for unpaid rates and charges. To use these new powers, trusts must include requiring security in their rules. The rules must be consistent with the regulations.
Becoming a private water corporation
As a result of the reforms, private water trusts can apply to become private water corporations. There is no fee if you apply before 1 March 2026.
Consultation documents
To develop the reforms, the NSW Government undertook research, analysis and consultation with joint private works schemes.
Initial consultation in 2022
Three discussion documents were on public exhibition from September 2022 to November 2022.
Report
96 joint private works schemes participated in the engagement and consultation program.
Further consultation in 2023
After incorporating feedback from schemes and doing further analysis, consultation drafts of the following were on public exhibition from 17 August 2023 to 30 September 2023.
Consultation drafts
Consultation drafts
- Draft regulatory impact statement proposed regulations (PDF. 788KB)
- List of private water corporations (PDF. 176KB)
- List of private water trusts (PDF. 59KB)
- Model rules guide for private water corporations (PDF. 140KB)
- Model rules for private water corporations (PDF. 731KB)
- Model rules guide for private water trusts (PDF. 148KB)
- Model rules for private water trusts (PDF. 710KB)
Finalisation and commencement in 2024
Following this further consultation, the proposed regulations and these documents were finalised, and the Minister approved commencing the reforms with the start date of 1 March 2024. There was a 12 month transition period from 1 March 2024 to 1 March 2025 for schemes to comply with the new requirements.