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Modern Water Rights Modern Water Rights – Theory and Practice Modern Water Rights – Theory Theory and Practice

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Modern Water Rights Modern Water Rights – Theory and Practice Modern Water Rights – Theory Theory and Practice ISSN 1014-6679 92 FAO LEGISLATIVE STUDY 92 Modern water rights Modern water rights – Theory and practice Theory and practice This publication offers a fresh look at the theory and practice of modern water rights, from a comparative law angle. It sheds light on a number of key features of such rights, and draws out and discusses the relevant problematic issues. It will be of inspiration and use in the process of reforming water laws in general, and the laws concerning water rights in particular. ISBN 978-92-5-105624-0 ISSN 1014-6679 FAO 978 9 2 5 1 0 5 6 2 4 0 TC/M/A0864E/1/11.06/1200 FAO LEGISLATIVE Modern water rights STUDY Theory and practice 92 Stephen Hodgson for the Development Law Service FAO Legal Office FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome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ª'"0 FOREWORD Much contemporary discourse on water resources governance - i.e. a system and structure for the allocation of water resources to competing users, and for the protection of the resource from depletion and from pollution - is underpinned by the law of water resources in general, and by the law governing modern water rights in particular. Indeed, theoretically it is hard to conceive of good governance goals outside a legal frame of reference where water rights play a central role, and where a functioning system of modern water rights is the lifeblood of governance itself. In practice, a key focus of contemporary water law reforms virtually anywhere in the world has been and is the introduction of formal and explicit, i.e. modern, water rights, which enable the orderly allocation and sustainable use of valuable water resources. This publication offers a fresh look at the theory and practice of modern water rights, from a comparative law angle. It sheds light on a number of key features of such rights, and contrasts these to traditional forms and kinds of water rights. It teases out and discusses the relevant problematique, including in particular that elicited the sale and leasing of water rights. Finally, a stock-taking and assessment of modern water rights systems impacts are volunteered. This publication complements two earlier issues featured in the FAO Legislative Studies series, i.e. Water rights administration - Experience, issues and guidelines (No. 70 of 2001), and Preparing national regulations for water resources management - Principles and practice (No. 80 of 2003). The former illustrates and discusses the practicalities of implementing and administering the modern systems of water rights which are at the centre of this publication. The latter provides a systematic account of the administrative lifecycle of modern water rights, as reflected in regulatory legislation. These three publications combined provide a rounded review and, in part, a critical analysis of the theory and practice of modern water rights. It is hoped that they will be of inspiration and use in the process of reforming water laws in general, and the laws concerning water rights in particular. This publication has been prepared by Mr Stephen Hodgson for FAO. The author gratefully acknowledges the assistance of Dr Stephen Merritt, Andreas Charalambous and Peter Garratt. Stefano Burchi Officer-in-Charge Development Law Service Table of Contents v TABLE OF CONTENTS Foreword ......................................................................................................................... iii List of Acronyms ........................................................................................................... viii 1. INTRODUCTION ............................................................................................. 1 2. TRADITIONAL APPROACHES TO WATER RIGHTS ..................... 4 2.1. What are water rights? ......................................................................................... 4 2.2. Traditional land-based approaches to water rights ....................................... 9 2.2.1. Rights to surface water ...................................................................... 10 2.2.1.1. The common law tradition ................................................. 11 2.2.1.2. The civil law tradition ......................................................... 14 2.2.2. Rights to groundwater ........................................................................ 16 2.2.2.1. The civil law tradition ......................................................... 16 2.2.2.2. The common law tradition ................................................ 16 2.2.3. Rights to water in artificial water courses ...................................... 18 3. REASONS FOR MOVING TO A SYSTEM OF MODERN WATER RIGHTS ...................................................................... 20 3.1. Ill-adaption of traditional land based approaches to specific climatic conditions ......................................................................... 21 3.2. The inadequacies of traditional land based approaches ............................. 22 3.3. The need to take account of environmental considerations ..................... 23 3.4. The need to better recognise the economic value of water ...................... 24 3.5. The transformation from socialist to market based economies .............. 25 3.6. Regional initiatives ............................................................................................. 25 3.7. To support or entrench wider economic reforms ...................................... 26 3.8. To support other reforms ................................................................................ 26 3.9. The promotion of social goals ........................................................................ 27 3.10. The completion of earlier reforms ................................................................. 28 3.11. Pressure on water resources ............................................................................ 29 4. THE CONSULTATION AND EDUCATION PROCESS INVOLVED ................................................................................. 31 5. THE LEGAL AND REGULATORY BASIS .......................................... 36 5.1. The need for primary legislation ..................................................................... 36 5.2. The ‘nationalisation’ of water resources ........................................................ 37 5.3. Institutional arrangements for water resources management ................... 39 vi Table of Contents 5.3.1. Stakeholder involvement ................................................................... 40 5.3.2. Specialized water management entities .......................................... 41 5.3.3. Water administration tasks and powers ......................................... 43 5.4. Free uses of water ............................................................................................. 45 5.5. The introduction of water rights ..................................................................... 46 6. THE INITIAL ASSIGNMENT OF RIGHTS ......................................... 49 6.1. The recognition of existing rights and uses at the time of the reform ....................................................................................................... 49 6.2. The grant of new rights .................................................................................... 51 7. EXPERIENCE WITH PROCEDURES FOR REGISTRATION OF RIGHTS .................................................................. 56 8. THE DEFINITION OF RIGHTS ............................................................. 60 8.1. The volume of water that is subject to the right ......................................... 60 8.2. Duration ................................................................................................................61 8.3. The conditions to which the right is subject ................................................ 64 8.3.1. General conditions ............................................................................. 65 8.3.2. Specific conditions .............................................................................. 67 8.4. The formal mechanisms that guarantee the security of the right ........... 69 9. THE SALE AND LEASING OF RIGHTS - PROCEDURES AND IMPLICATIONS .................................................. 72 9.1. Experience to date ............................................................................................. 73 9.2. Concerns, perceptions and trends .................................................................. 80 9.2.1. Number of trades ............................................................................... 83 9.2.2. Benefits and conclusions ..................................................................
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