Boston College Law Review Volume 9 Article 6 Issue 3 Water Use - A Symposium
4-1-1968 Australian and American Water Allocation Systems Compared Peter N. Davis
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Recommended Citation Peter N. Davis, Australian and American Water Allocation Systems Compared, 9 B.C.L. Rev. 647 (1968), http://lawdigitalcommons.bc.edu/bclr/vol9/iss3/6
This Article is brought to you for free and open access by the Law Journals at Digital Commons @ Boston College Law School. It has been accepted for inclusion in Boston College Law Review by an authorized editor of Digital Commons @ Boston College Law School. For more information, please contact [email protected]. AUS A IA A AME ICA WA E A OCA IO SYS EMS COM A E E E . A IS A d n r l pl nt , l l nd r n l h rt f t r h v pp r d n th t rn Un t d St t h h rt r l r l th r lt f nt n n ntr t n f t r d nd n th r p rt nt r v r —r v r h h, f r th t p rt, r h v l p ll t d. 2 h pr bl h ht n d b th f t th t th l t n f j r p p l t n nd nd tr l nt r h nl p rt ll d p nd d n v l b l t f t r ppl . In n r , l l rf nd r nd t r ppl r n d t nd t r t b p rt d t p th d f t.° M r v r, d nd n t r ppl f r ppl nt r rr t n, f r h dr l tr p r, nd f r r r t n l nd n rv t n p rp r xp t d t b n r n l r t ." h h rt r th t n h th r th x t n r p r n l n th E t d t t th t f t r ll t n h h l h d, r h th r th r t r r ht t h ld b b t t t d f r r p r n .° .A., v rf rd C ll , , Un v r t f W n n, 6 M b r, U.S. S pr C rt, W n n, tr t f C l b , nd U.S. t nt Off r G n r l Att rn , U.S. p rt nt f A r lt r t r r, Un v r t f W n n S h l r rl t d th El & n n, W h n t n .C. h rt l ll f r p rt f th t b b tt d t th Un v r t f W n n f r n S. . . d r . W r n th A tr l n l p rv d b th l t r f r b . h r, Un v r t f W n n S h l, nd b r f r G. S r, p rt nt f , In t t t f Adv n d St d , A tr l n t n l Un v r t . r h t A tr l n t n l Un v r t n 6 64 f n n d b llbr ht S h l r h p fr th U.S. Ed t n l nd t n. Add t n l r r h t th Un v r t f W n n n 64 6 f n n d b r nt fr th U.S. bl lth S rv nd fr th S h l. Op n n xpr d r n t n r l th f th U.S. p rt nt f A r lt r . h t rn Un t d St t , f r p rp f th rt l , n t f th t t xt nd n t rdl fr nd n l d n th t r f t t l n th t b n f th M pp v r. h r n r ll r rd d r p r n d tr n t t . h r n n t rn t t n th nl nd r n r ll r rd d pr r ppr pr t n d tr n t t . A f t rn t t r d l d tr n t t , f ll n b th r p r n nd pr r ppr pr t n. 2 S n , C ntr ll n Ind tr l W t r ll t n: C l r th r bl Gr n, .C. Ind. & C . . v. ( 68 .. S A l nb h, W t r—O r S nd M t I p rt nt t r l r , .C. Ind. & C . . v. , 4 0 ( 68 . 4 S n r ll . nd b r , . h n & . h r, r n A r t r ( 6 . p r n v th n r f l nd b tt n tr r ht t r n bl f th tr t r. h r ht rr l t v th th r ht f th r r p r n n r . S pp. 6 6 88 , nfr . Cf. r l , l f r W t r : r p rt ht , E n r , nd bl l t n, S t r l r . , 48 ( 6 r l , A M d l St t W t r C d f r v r n v l p nt, 22 & C nt n. r b. 0 ( . p r n h b n d d r t ll . Ell , S C rr nt nd r p d W t r ht l t n n th 64 BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL LAW REVIEW
This article will examine in its latter section four water use doc- trines: (1) riparianism, (2) prior appropriation, ( temporal non- priority permit systems and (4) marketplace concepts. The major strengths and weaknesses of each will be compared in the light of five criteria: (1) security of water right fOr investment purposes, (2) efficiency of water use, ( flexibility in the allocative process to allow for economic growth, changing technology and changing demands, (4) protection of the public interest and the preservation of watercourse amenities, and (5) the allowance of scope for private initiative. In the first section of this article, the Australian system for licens- ing private diversions will be examined in detail as an example of a temporal nonpriority permit system that has been in effect for a length of time unparalleled in this country.? The Australian concepts as enacted in the three states within the River Murray basin (Victoria, New South Wales and South Australia) are presented both for com- parisons with American systems and as a fund of experience for use by commentators in the future.'
I. E AUS A IA WA E A OCA IO E E IE CE The water law of Australia has generated two main allocative systems: extensive, government-run irrigation areas, and licenses or permits for private diversions. A brief summary of the historical development of irrigation areas in the River Murray basin states will be presented first. Then the legal questions raised by abolishing com- mon law riparian rights and substituting a system of individual licenses will be discussed. Finally, the licensing statutes of the Australian states will be examined in detail. E t rn St t , 4 I . v. 2 , 2 4 8 ( 6 C. h r, W t rn Exp r n nd E t rn Appr pr t n r p l , n h f W t r All t n ( . b r & S. r n d. 8 . C. r & . G rd n, l t v Ch n f W t r n M h tt , n h f W t r All t n ( . b r & S. r n d. 8 , l p b l h d p r n W t r ht v. A r r Appr pr t n S t : A C p r n, 8 .U. . v. 20 ( 8 . l n n r t f r f r th ll t n f t r r ht pr t d b v r l n t . S , . ., M. G ffn , C p r n f M r t r n , nd Oth r M n f All t n W t r r , n W t r nd l n th S th t , 2 (In t t. f & G v t, S h l f , Un v. f G ., 62 . r hl t r, . v n & . M ll n, W t r S ppl : E n , hn l , nd l , h . III, I , I , II ( 60 M ll n, W t r nd r v t n M n : A Cr t , 2 . & E n. 4 ( . In t p r l n npr r t t , v rn nt n t r r ht , ntr t , l n , p r t , t ., nd r v th , th t r rd t t f n . h ld t h t n A r d pt d n M nn t n . M nn. St t. Ann. $§ 0 .4 A ( 64 . 8 h r n xt n v d n n A tr l n r A r n l t r t r f A tr l n ll t v t . t , C n d r t r , 2 t ( 44 . t th t th M rr v r t , n th th t rn p rt f th nt n nt, th nl z bl t th t h r v d xt n v n d v l p nt. 648 AUSTRALIAN AND AMERICAN SYSTEMS
A. t r l v l p nt f Irr t n n A tr l h pr bl f r l t n rr t n n n nv r n nt f r t r n t n t th Un t d St t . A tr l f d th pr bl v r rl . h ntr l r l r d" th rr t tr fl . W t r h b n xpl t d pr n p ll f r rr t n t f r t ppl nt t dr l nd r lt r , b t l t r d t n t f r f r lt r . S rf t r ppl h v b n t r d n h r r v r nd nv d thr h h ndr d f l f n d tr b t n n l . Irr t n r h v b n d v l p d n f p p l t n th l nd nd b f xt n v l nd r f r h . M t f th d v l p nt h t n pl n th b n f th v r M rr t . . h l Env r n nt f th v r M rr n.— h b n f th v r M rr , d l t d b nt r l n , h t h nt f 4 4,000 r l , r b t n v nth f th h l f th A tr l n nt n nt h M rr t h n v r nn l fl f b t 0 ll n r f t, d r v d fr nl p r nt f t t h nt. h r v r fl n rth t fr th Sn M nt n r r th v r fl t r v r n pl n , h r t r z d b n rr f n t n h nn l , n br n h nd b ll b n , t th l nd pl n h r , n r M ld r , t r , t j n d b t f t j r tr b t r : th M rr b d , p r ll l n t fr th t, nd th rl n fr th n rth t. It th n fl t nt
A tr l f d r l p rl nt r n t n nt n n x t t nd t f d r l t rr t r : S th W l , Q n l nd, S th A tr l , n , t r nd W t rn A tr l , nd th rth rn rr t r nd th A tr l n C p t l rr t r . h x t t r lf v rn n r t h l n pr r t f d r t n n 0 . h rl nt f h t t h v ll l l t v p r n t p f ll r nt d t th d r l rl nt b th A tr l n C n t t t n. A n th t t p r r ntr l nd d p t n f Cr n l nd (th p bl d n nd t r f th t t . h f d r l v rn nt p f ll r nt d p r v r n v t n, b t t n t " br d th r ht f St t r f th r d nt th r n t th r n bl f th t r f r v r f r n rv t n r rr t n." C n lth f A tr l C n t t t n § 8, 00. h n th t th f d r l v rn nt n t n t l ff t n rr t n t . C. K n , An O tl n f Cl r S ttl nt n S th W l 224 ( . S G. S r, A tr l n G v rn nt d ( th d. 6 . Art l "A tr l " n 2 En l p d A r n 64, 6 ( 8 d . v r M rr C n, v l p nt f C ntr l f th W t r f th v r M rr nd r th v r M rr A r nt, n r d f th n l hn l C nf r n n W t r r v l p nt n A nd th r E t 422, U. . . S ECA E SE . ( 6 n , A tr l n W t r r , th rt l r f r n t W t r S ppl n C ntr l A tr l , 8 . In t l. En r A tl. , ( 46 . 2 n , pr n t , t 6. h C l b v r h t h nt l htl ll r th n th v r M rr , b t t fl v r 6 t l r r. d ll, A tr l n W t r l , 2 A ( t. 22 , 228 ( 6 . (A th h j rn l f th St t v r & W t r S ppl C n, t. . h t , th r v r t h r t r z d b n rr f nt rj n n h nn l , d v r n br n h , nd bl nd h nn l l d n t fr r v r . h l nd pl n n t f d n th t f r d b th ll , nd f l r n l pt . 64 OS O CO EGE I US IA A COMME CIA AW E IEW
South Australia through a 6-mile-wide valley to Overland Corner where it turns south through a limestone gorge to Lakes Alexandrina and Albert and the sea at Goolwa, about 1600 miles from its source. Irrigation has been fostered on the riverine plains of Victoria and New South Wales and in the wide valley in South Australia. Major headworks have been constructed on the River Murray and all of its significant tributaries. Additional water is being added to the Murray and Murrumbidgee through the transmountain diversion tunnels of the Snowy Mountains Hydro-electric Authority." Agriculture in the interior of Australia has long suffered from a skimpy and erratic rainfall and a high evaporation rate, particularly during the growing season. Rainfall in the Murray-Murrumbidgee basin in southeastern Australia, where the major irrigation schemes are located, averages 17 inches annually. It has a striking variation, ranging from 60 inches in the highlands of Victoria above Albury to less than 12 inches in the Murray district of South Australia?' In the western reaches of the basin the chance of receiving the one and one- half inches of rainfall each month necessary for maintaining wheat growth during the growing season is 25 percent?' Because of a very high evaporation rate during the summer, sufficient rainfall to promote the growth of natural pasture in the same region occurs on an average of one year in seven." Complicating the problem of securing water are long cycles of drought and plentiful rainfall. Droughts have lasted for as long as seven years. While they last, major rivers commonly dry up." 2. Early Response to Climatic Variations.—The area drained by the River Murray was settled as a result of the explorations of John Oxley, Hamilton Hume and Charles Sturt between 1817 and 1830. It was a harsh, arid area populated only by scattered aboriginal tribes. During the 40 years after 1830 the area filled with huge grazing "sta- tions" raising sheep for the wool market. After 1870 some of the area was converted to large dryland wheat farms." Because of the violent fluctuations in rainfall, graziers and wheat farmers in the Murray basin early turned to rivers for their water
4 Wh n f ll d v l p d, v r , 20,000 r f t f t r ll b d v rt d nn ll t th M rr b n. Sn M nt n A th r t , h Sn M nt n S h : t r f th S h , Irr t n A p t , El tr t G n r t n 0, n 6 (p phl t . n , pr n t , t n r ll W. . . , W rld W t r S ppl nd A tr l rt n f It, 2 . In t t. En r A tl. 2 ( 4 . 6 n , pr n t , t . Id. t 62. h v r M rr t lf dr d p thr t n 8 0, 2 nd 22. Art l "A tr l " n 2 En l p d r t nn 02, 04 ( 8 d. . 0 r h t r f rl ttl nt f th nt r r, M. Cl r , A Sh rt t r f A tr l 6 ( 6 C. K n , pr n t . 6 0 AUS A IA A AME ICA SYS EMS
ppl f r d t nd t t r p rp . In p t f v rn nt pr r t dr ll rt n ll , nd t pr v d p bl t r n pl l n t r t , 2° pr r d v l p d f r n l f d d t nd t t r ppl t nd f r ppl nt r rr t n t . l t v r l f n t r n n th rl 800 pr v d n d t . . Irrigation Act 1886 (Victoria).—A l C n n W t r S ppl pp nt d n t r n 884 t r h f r r ff t v r l f, nd t nv t t th p b l t f r f ll bl n rr t n h . Alfr d n, l t r r M n t r f A tr l nd tr n dv t f rr t n, pp nt d h r n. M n f th b l nt f A tr l n t r ll t n l t fr h nt f rr t n t nd l n th t rn Un t d St t , p rt l rl C l f rn nd C l r d , nd n Ind , E pt nd It l . 22 n v d th nf d t t f t r r ht n C l f rn pr r t Lux v. Ilaggin" th h rr r, nd d d d th t th t f r p r n r ht th n n f r n t r h ld b b l h d. h r lt n Irr t n A t 886 24 pr h n v d f t n f ld nd n pr v n h t t l ff t r v l t n r n p t. It nt n d x j r d : First, r p r n r ht r b l h d nd th t r f th t t r "n t n l z d." " h r ht t th nd fl nd t th ntr l f th t r t n t n n ... t r r h ll . . . v t n th Cr n." 2 f r f th pr v n, r p r n n r ld n t, b n t n n r ht t "n t r l fl ," pr v nt p tr r p r n fr rr t n . 2° " t n l z t n" f th t r f th t t v th Cr n p r t ll t t r fr l , t nd d t d n h l t t n n rr t n r nd v d d n p l z t n f t r r ht b l nd p l t r ft r n l r n tr t d 2
26 In S th W l , n p bl rt n ll r dr ll d nd r th pr r th r z d b bl W t r n l A t 884, 48 t. . 6 ( .S.W. . 6 E. ., W t r C n rv t n A t 88 , A t . 6 ( t. , nd W t r C n rv t n A t 88 , A t . 8 ( t. . 22 S A. n, r t r r p rt of l C n n W t r S ppl , Irr t n n W t rn A r , 2 t. d. p r ( 88 . 2 6 C l. 2 , 0 . 6 4 ( 886 . 2 A t . 8 8 ( . . 2 Irr t n A t 886, A t . 8 8, § 4 ( t. , r n t d, W t r A t 8, A t . 64 , § 4( ( t. . 26 Sp h b A. n, M n t r f W t r S ppl , n pp rt f W t r S ppl nd Irr t n ll, l t v A bl , n 24, 886, t. rl. b. 4 , 440 4 ( 886 . 2 Id. t 44 . h A t h v rt ll l n t d t r r ht l t t n n t r . n t d n th nt xt th C l r d C n t t t n f 8 6, rt. I, § , h h d l r d ll tr th n th t t t b "th pr p rt f th p bl , ... d d t d t th f th p pl ...... r v f h l n , t ld h th ht th C l r d C n t t t n r t d t t pr pr t r h p n t r. t l x n t n h h r n z d t pr b bl nl d l r t r f th n l p bl j r n pt pr l d t th pr r ppr pr t n d tr n . S C l . C n t. rt. I, §§ , 651 OS O CO EGE I US IA A COMME CIA AW E IEW
S nd, all riparians were given a statutory license to divert water for domestic and stock watering purposes?' Owners of land alienated by the Crown and conveyed to private ownership prior to the date of the Act were also permitted to divert water for irrigating small gardens." This right, which the Australians call the statutory riparian right, is similar to the "natural" use allowed to riparians, without formal governmental authorization, by the common law. h rd, all other diversions were prohibited except as authorized by the Act." This provision had the effect of requiring licenses for all diversions classed as "extraordinary" or "artificial" at common law. These uses include dams for mill ponds, and diversions for manufact- uring and irrigation?' This provision raised the question whether the Act destroyed water rights which had vested in the riparian proprietors. Deakin addressed himself to this question during the debates on the bill. [T]he riparian law of England places riparian rights even above those of the Crown. The Crown has only the same rights as private landowners in so far as it possesses land along the banks of any stream. The question, of course, is— Does this law obtain in Victoria?, It is understood that [one authority] was of opinion that there was no such thing as riparian law in Victoria.... pint there is no clear and
6 ( 8 6 A. n, pr n t 22, t 42. S l , r r r Appr pr t n t E n tr b t n f W t r b th St t — Irr t n Ad n tr t n, Mt. . v. 6 , 4 8 ( 2 r l , G v rn nt O n r h p nd r t h p f W t r, 4 C l f. . v. 6 8, 642 4 ( . 28 Irr t n A t 886, A t . 8 8, § 4 ( t. , r n t d, W t r A t 8, A t . 64 , § 4 ( t. . t d f n d n th A t : W f r h h ld p rp r f r t r n n l pt f r d t p rp , b t d n t n l d f r t r n n th r n l r n tr hr b pl nt r l n r rt r fl r rd n t h n rd n r th r rd n h t v r r n p rt f th rt l f h r f r th pr v n f p r r f r f nt n p nd r rn nt l p rp r f r n tr d r b n r f r n th r p rp h t v r. W t r A t 8, A t . 64 , § ( t. . [Ed. n t : l f n r n l.} 2 Irr t n A t 886, A t . 8 8, § 4 ( t. , r n t d, W t r A t 8, A t . 64 , § 4 ( t. . t t n l ll r n t d r b d n th n l d n rr t n f ll rd n . t n En l h d t th t t r n ll rd n th b t ld b r n bl nd r n r t n . E br v. O n, En . p. , 8 (Ex. 8 . h , f r , th d f n t n f n " rd n r " . Irr t n A t 886, A t . 8 8, § 4 ( t. , r n t d, W t r A t 8, A t . 64 , § 6 ( t. . Irr t n f n nd h n t b n r rd d n " rd n r " t n l . It n " xtr rd n r " . At n l , rr t n b p r d f th r n n bl d n t n f th tr . E br v. O n, En . p. (Ex. 8 l v. M ll r, 2 t. . . 6 , 80 8 , 0 Ar . . , 2 ( 04 . 6 2 AUS A IA A AME ICA SYS EMS
b l t l l n t nt t th t ff t, nd th r n nt l r h ld ntr r p n n." Wh th r r n t r p r n r ht h d v t d, v r l f t r d t pr b bl th t r p r n pr pr t r ld r n r bj t n t th A t. h t t t r r p r n r ht pr rv d d v r n f r d t nd th r " rd n r " n n t n l . S n " xtr rd n r " l rr t n nd n f t r n r l r l nd rd v l p d n 886, p ll n th nt r r pl n f t r , th t t t r r p r n r ht pr bl ll d t f th x t n diversions to nt n n ff t d b r l t n. r f r p r n r ht f n d r pt n h d, n f t, b n r d n t r . h r r thr r n f r th . (A Aft r M 2 , 88 , ll r v r fr nt n l nd th n n d b th Cr n r r rv d t th Cr n b t t t :" In pr t , h n th l nd r ld, th Cr n r t n d tr p f l nd n b th b n f t r r . h r rv t n pr v nt d pr v t t n f r p r n r ht ft r th t d t . A t n b f r th t d t r l pr l d d nl th l nd r nt d r b d th tr b nd r . 4 rth r, b f Cr n r nt b tt d n t r r , v r f r p r n r ht h d b n r d fr th Cr n b f r 886. h C n r f tl n rt d that h n f nl t Cr n r nt t h h r p r n r ht r pp rt n nt." ( Alth h b t t t pr v t p rt r nt tl d t l pr r pt v r ht t d v rt t r f r " xtr rd n r " n th b f 20 r ," n l f r pr r pt v r ht r v r f l d." (C l r p n t n b t n r h p f th b d, th 0 W t r A t n l d d pr v n l rl t t n th t h n r h p h d b n r t n d b th Cr n p n l n t n f th b tt n Cr n l nd 8 In h rt, t h b n pt d th t r p r n r ht n t r h v b n b l h d nd n l n r x t."
2 Sp h b A. n, pr n t 26, t 440 4 . v r fr nt r r rv d nd r th r t f th Cr n nd A t 86 , A t . 60, §§ 6, ( t. : t r n Y r 6 , v r nd W t r r 8 (r pr nt . h pr v n p r n th Cr n t r rv r v r fr nt h d b n n th b n 86 . S Cr n nd A t 86 , A t . ( tt. Cr n nd A t 862, A t . 4 ( t. . Cr n nd A t 86 , A t . 60, §§ 6 ( t. . E t, t r n W t r — p r n ht , 6 ( . 4 . n f C n r f tl ( t. , 0 , r : All t nt Ab tt n S lt Cr , 0 t. rl. b. 64 ( 0 p h b G r S nb rn , M n t r f W t r S ppl , n pp rt f W t r A t C n l d t n nd A nd nt ll, l t v C n l, A . 0, 0 , 0 t. rl. b. 2 2, 2 ( 0 . W t r A t 0 , A t . 20 6, § ( t. . . E t, pr n t 4, t 6. 8 W t r A t 0 , A t . 20 6, § ( t. , r n t d, W t r A t 8, A t . 64 , § ( t. . h t t n n t l r n S th W l nd r l r r p f pr 6 BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL LAW REVIEW
Two recent High Court of Australia dicta seem to agree, suggest- ing that the state "nationalization" statutes abolished all common law riparian rights.' Unhappily the high court, in another case, chose to muddy the waters somewhat. The case involved the redirection of flood waters by a levee to lands which would otherwise remain dry. The court held that the common law rights of nuisance and negligence had not been abolished by the Water Rights Act 1896 (New South Wales) or its successors.' Mr. Justice Fullagar added in unfortunate dictum: I should have thought . . . that the real object of the W t r ht A t 1896 . . . was to enable the Crown, in a country in which water is a comparatively scarce and impor- tant commodity, to exercise full dominion over the water of rivers and lakes and to undertake generally the conserva- tion and distribution of water. For the attainment of that object it was not necessary to destroy anybody's rights, but it was necessary to give to the Crown . . . overriding rights to which private rights must, if need arise, give way. The effect given to the statute .. . means that a riparian proprietor has no remedy as of right if a river is dammed by an upper owner so that no water reaches him, or if it is polluted and poisoned by the refuse of a factory. . . . The view which I am disposed to take is that the Act does not directly affect any private rights, but gives to the Crown new rights—not riparian rights—which are superior to, and may be exercised in derogation of, private riparian rights, but that, until those new and superior rights are exercised, private rights can and do co-exist with them." v n rr ntl n t d n W t r A t 2 , § 4A( ( .S.W. , h h "n t n l z d" th fl , nd ntr l f t r n r v r nd l nd t bl h d l n n t v r l r t t r . h t t bl h l n n pr v n f r d v r n , W t r A t 2 66, § 0( ( .S.W. , x pt f r d v r n nd r th t t t r r p r n r ht, d. § ( . S n Cr n r nt n S th W l h v n l d d th b d f tr , nd n r v r fr nt r n t r rv d, . E t, pr n t 4, t , th t n h th r r p r n r ht tt h d t l nd b tt n tr b n f nt. It t t d n 00, h n n p tr r p r n l nd n nd t d b b p fr d n tr r p r n d nd th p tr n r br ht t, ll n h n l r p r n r ht h d b n v l t d. h S th W l S pr C rt, n n n v. Gr G ll G ld M n n C ., 2 .S.W. . . ( . 2 , 2 ( 00 , h ld th t th W t r ht A t 8 6, 60 t. . 20 ( .S.W. , h d t n th ld n l r ht . S l h rt v. Ah , .S.W. W l . 8 ( 02 Att rn G n r l ( .S.W. v. r dn , 20 S.W. W l .24 ( 0 . 40 S d t nd pl t n n l. n & C . v. M n p l t f K n b r h, 82 C . . . 282, 42 (A tl. 0 ( ll r, . G rtn r v. K d n, 08 C . . . 2, 2 (A tl. 62 (W nd r, • • 4 h rp td. v. Gr nt t r l C ., 2 C . . . (A tl. 4 , n tr n W t r ht A t 8 6, 60 t. . 20 ( .S.W. . 42 Id. t . 6 4 AUS A IA A AME ICA SYS EMS
t h t Mr. t ll r nt n t l r. If h nt th t r p r n r ht x t nl h r th Cr n h n t p d th f ld b l l t n, nd th t th rt h ld n tr th l n n t t t h pr h n v p n l l t n, th n th t t t nd th h l d n tr t v tr t r b lt p n th h v n t b n n d. d t h v r, t th t h ld t h r r tr t v v f th p f th l n n t t t . S h n nt rpr t t n thr th n n f th "n t n l z t n" pr v n nt d bt. rth, th Irr t n A t 886 t bl h d n t r d v r n l n n t , b th t r f h h l n h d t b bt n d fr t t n f r d v r n f r n n nd t p rp fr n t r r , r rv r, h nn l r dr n." All l d " x tr rd n r " r " rt f l" t n l , f r x pl , n f t r n r rr t n, h d t b l n d." n n f d v r n n t n . Aft r 86 , rt n d v r n h d b n r r d t b l n d b th rd f nd nd W r ." Wh t n l n n b n l t t n th p l p t n n t r ppl . h d b rr d fr C l r d b t th t th pr r ppr pr t n f t r ." n n nd r th Irr t n A t 886 f r t d n t r d b th t r n W t r S ppl p rt nt, nd, ft r 0 , b th St t v r nd W t r S ppl C n. t l d p t f l n n r d d l t r." fth, th v rn nt v n p r t l n n nr p r n n r t nd n r ht f t rf t r r ." h n pt ll n n n th v l l n " nt f d t." Al th h n b rr d t fr E r p nd C l r d ," th n pt n t n n n n A tr l , th t r W t r C n rv t n A t 88 h v n th r z d W t r r nd Irr t n r t , ll pr v t p r n t r " nt f d t" f r p rp f th t A t."
4 Irr t n A t 886, A t . 8 8, § 4 ( t. , r n t d, W t r A t 8, A t . 64 , § 6 ( t. . Irr t n A t 886, A t . 8 8, § 22 ( t. , r n t d, W t r A t 8, A t . 64 , § 204 ( t. . 44 S n t pr . • 4 S Cr n nd A t 86 , A t . , § ( t. Cr n nd A t 862, A t . 4 , §§ 6 ( t. Cr n nd A t 86 , A t . 60, §§ 46, 4 6 ( t. Cr n nd A t 884, A t . 8 2, §§ 6 , 24 ( t. t r n W t r C n rv t n A t 88 , A t . 6, §§ 8, 4 42, 46, 48, 8. 46 A. n, pr n t 22, t 42. 4 S pp. 664 4 nfr . 48 Irr t n A t 886, A t . 8 8, 2 ( t. , r n t d, W t r A t 8, A t . 64 , § 20 ( t. . 46 Sp n h f W t r 8 , rt C M. C n t. rt. I, § ( 8 6 . 0 W t r C n rv t n A t 88 , A t . 8, § 0 ( t. . In 46, S th W l p r d th W t r C n rv t n & Irr t n C n t " nt f d t" l C n t n bl n nr p r n t n t t r. Irr t n nd 6 OS O CO EGE I US IA A COMME CIA AW E IEW
Sixth, pr v t rr t r r p r d t r n z Irr t n r t . h v rn nt th r z d t l n t th r t f r n tr t n f d tr b t n n l th n th r t d tr t . In dd t n, th v rn nt th r z d t n tr t j r r rv r nd n n l t ppl t r t th r t t . r l r lt f th l n pr v n , r p d d v l p nt f rr t n b n l t t n . 8 6, v r 8,000 r h d b n p t nd r rr t n. n t th r th pr v n f th t r n Irr t n A t 886 r d n d t r pl r p r n th n t r ll t n h n ntr ll d b th t t f r th p bl b n f t. h p t r l nd h t r n nd tr n th nt r r pl n r t b f t r d b br n n t th ppl nt r t r ppl b h h ll, n t n l t r d f dd r pl t ld b t bl h d: nd f dr ht n r n ." b t nt l nt n f t n f x t n l nd b nv r n t t r nt n v r p , nt pl t d b n r th 886 A t pp rt r . r f f th l n th f t th t r n z t n f Irr t n r t t b l ft t l l n t t v , nd n th f t th t th v rn nt nt nd d t ppl th v t r t d tr t fr th r l t v l ll nd rr t t r r r f th nr l t d G lb rn nd dd n v r . h rr t n h b lt nd r th A t r , n f t, f r ppl nt r rr t n." h Irr t n A t , 886 r pr nt d br thr h n th n n n A tr l , t d ld n th th n n f rr t r nd l l t r f r th n xt 20 r . S th W l n t d l r l n n l l t n n 8 6." S th A tr l f ll d t n th l l t n r l t n d v r n n th M rr rr t n d tr t ." 4. Water Act 1905 (Victoria).—The Irr t n r t r n z d nd r th Irr t n A t 886 n t d f v t rth n n l t
W t r (A nd nt A t 46, A t . , § 2( ( ( .S.W. , r n t d W t r A t 2 66, § A( ( .S.W. . 6 l C n n W t r S ppl , p rt, t. rl. p r 44 , 620 ( 886 . 2 th rf rd, Int r t n f Irr t n nd r l nd r n n th S th rn M rr n— rt III, 28 v. M r t n & A r . E n. ( .S.W. , 8, 2 ( 60 . h A t h f bj t v " t t pr d t n t b l t n n l t bl h d dr l nd n ... f r h t h p pr d t n . . . ." Id. t 8. h t l t d n t 2 pr h d h th p rp . Id. t . Id. t 2 E. M d, lp n M n t O n r 0 ( 20 . W t r ht A t 8 6, 60 t. . 20 ( .S.W. , rr ntl n t d, W t r A t 2 66 ( .S.W. . h t A t d d n t pr v d f r n tr t n f h d r b th v rn nt. 6 C ntr l f W t r A t , A t . (S . A tl. , r n t d, C ntr l f W t r A t, 2 (S . A tl. . h A t ppl nl t th l nd b rd r n th v r M rr b v M nn t th t n b rd r th t r nd S th W l . It "n t n l z " t r r ht , b l h r p r n r ht , nd pr v d f r d v r n l n . 6 6 AUS A IA A AME ICA SYS EMS supplying small quantities of water to scattered locations. They were often over-capitalized and under-utilized and their reservoirs were in- adequate during extended droughts. Wheat farmers and graziers took water only during droughts and thus reduced Trust revenues during wetter seasons. Local managements could not or would not levy charges large enough to defray operating and capital expenses. By 1905 the Irrigation Trusts were insolvent." To protect its investment of /6 million in irrigation headwork and loans, Victoria abolished all Irri- gation Trusts by enacting the Water Act 1905; the State took over all operation and management of the irrigation systems and placed them in the control of the newly formed State Rivers and Water Supply Commission." Two other major policy changes were made by this Act. First, the government decided to effect a substantial intensification of land and water use, converting certain wheat-farming areas to vineyards and fruit orchards. Additional storages and distribution canals would be constructed to provide an enlarged and more stable water supply. Second, to achieve a more intensive use of water on existing irrigated farms and to bring unirrigated areas served by channels into the sys- tem, a "compulsory water right" was introduced. Each farm was assigned a certain volume of water per acre for which a charge was levied whether or not the water was used." The Water Act 1905 clearly contemplated substantial resettle- ment a result of the government's new policy to intensify land and water use. It was conceived as the "handmaiden" to Victoria's Closer Settlement Act 1904, 00 which had been introduced into Parliament at the same time." The latter act provided for condemnation of large estates, subdivisions into family-sized farms, and sale to selected applicants.
. S th rf rd, pr n t 2, t 2 l C n n W t r S ppl , p rt, W t. d. p r 44 , 626 ( 8 6 . 8 W t r A t 0 , A t . 20 6 ( t. . Id. § 6 ( t. . h d pr p d b G r S nb rn , M n t r f W t r S ppl , ft r h t r f rr t n r n 04. Ch r h rd, n r f Irr t n n t r —G r S nb rn , 8 A ( t. 2 , 24 ( . h p l r t r r ht n t n n n n th Un t d St t . Und r l l t n n t d n 4, p l r p nt f r n r f t f t r p r r f l nd rr t d r r d n ll rr t n r nd r th j r d t n f th r f l t n. l t n A t f 4, § , 8 St t. 686, 4 U.S.C. § 4 2 ( 64 . El d M d, n t d n t r th n W t r A t, h d dv t d th p l r t r h r n 0 . E. M d, Irr t n In t t t n 2 26 ( 0 . b d h d n th C r A t, 28 St t. 422 ( 8 4 , nd d, 4 U.S.C. § 64 ( 64 nd th r l t n f C r A t l nd t t t f Id h nd W n . Id h C d §§ 42 200 , 20 , 2026, 2028 ( 48 W . St t. 66 6 t 2 ( . 6 Cl r S ttl nt A t 04, A t . 62 ( t. . 6 Sp h b G r S nb rn , M n t r f W t r S ppl , n pp rt f W t r A t C n l d t n nd A nd nt ll, l t v A bl , O t. 4, 04, 08 t. rl. b. , 4 ( 04 . 6 OS O CO EGE I US IA A COMME CIA AW E IEW
Taken together, the two acts made possible the tripartite policy advocated by George Swinburne, Minister of Water Supply: (1) Water should be used in compact areas (2) As landowners were not prepared to subdivide land so that water could be used in compact areas, the Govern- ment should purchase land and subdivide and dispose of it under the Closer Settlement Act. ( The compulsory charge should be based on the delivery of a certain quantity of water, the quantity to each farm to be determined from the area of commanded land not unsuitable for irrigation.° Elwood Mead, an irrigation expert and later Commissioner of the U.S. Bureau of Reclamation,63 was hired in 0 as Chairman of the State Rivers and Water Supply Commission of Victoria to imple- ment these policies. He, too, had advocated intensive land and water use and irrigation of compact areas.° Very quickly he initiated a large-scale program of closer settlement based on irrigation° which has been continued to this day. These vast areas stand as a monu- ment to Mead's development of pragmatic methods to implement the policies embodied in the Water Act 1905 and the Closer Settlement Act 1904.66 S. Murrumbidgee Irrigation Areas 1912 (New South Wales).—In New South Wales, "nationalization" of water and licensing of diver- sions had occurred under the Water Rights Act 1896." These pro- visions had eliminated the armed conflicts over water which had occurred in the Riverina pastoral district before that time, but did nothing to foster large-scale irrigation." After several years of investi- gation and thought, the government decided to embark on a large- scale irrigation project •utilizing the waters of the Murrumbidgee River and regulated by a large storage reservoir upstream. Construc- tion began in 1906, land for the irrigated blocks was acquired between
62 A rd, W t r ht , 8 A ( t. , 0 ( . 6 r 24 t 6. M d h d pr v l b n Ch f En n r f W n rr t r nd pr f r f rr t n n n r n t St nf rd Un v r t . 64 S , . ., E. M d, pr n t . 6 h r rr t d r fr 86, 2 r n 0 0 t ,2 2 r n 2 . St t v r & W t r S ppl C n ( t. , Ann l p rt 2 , t. d. p r 288 ( 4 . 4 6 M d l ft th C n n . br ht th t r n f r l b t th Un t d St t h r h nfl nt l n r n l nd l l t n. 64 60 t. . 20 ( .S.W. . 68 U.S. pt f St t , Sp l C n l r p rt —C n l nd Irr t n n r n C ntr 82 ( 8 . 658 AUSTRALIAN AND AMERICAN SYSTEMS
0 nd 2," nd th f r t 00 ttl r t p n f th r bl n th M rr b d Irr t n Ar n 2." h S th W l pr j t d ff r d fr th t r rr t n t n v r l p rt nt r p t . It n rr t n t l t d n v r n p t r l nd, n t r h b l t t n f n x t n t . It l r , pl nn d, nt r t d S t , p d f t r r , l r d tr b t n n l nd v r z d bl f r lf lf , d r n , fr t tr nd r t rd n ." n , r l l n , r d , l tr t nd nn n f t r r pr v d d. h x t n l r h p t t n r nd n d, nd th rr t n t b t t t d. Irr t n bl r l d, n t ld." nd , t n r nd tr n f r r t htl ntr ll d. All th pl nn n , p r h n , n tr t n, d tr b t n, p r t n, f n n n nd l r ttl nt f n t n r ntr l z d n p l t t n , h h l t r r pl d b th pr nt W t r C n rv t n nd Irr t n C n." It , n f t, nt l nd r f r nd l n z t n h t p p l t pt l nd nd t t nt n l pr d t v ." h h ht t v d th t j r h rt n f th
0 th r f 2, th t t h d p l r l r d, n A tr l n p rl n "r d," b t 22 ,6 r n th n ° nd M rr l r f th v r n n rth f th M rr b d v r nd b t 00 l b l W W . C. K n , An O tl n f Cl r S ttl nt n S th W l 2 2 ( . d th M rr b d Irr t n Ar r f d n th t n f Gr ff th nd t n. ° Id. C n tr t n f r th r z d b th rr n nd M rr b d C n l C n tr t n A t 06, A t . 46 ( .S.W. . 2 C nd n t n f l nd th r z d b th M rr b d Irr t n Ar pt n A t 0, A t . ( .S.W. . b r G v rn nt n S th W l tr d t n ll h v b n ttr t d b th d f nr . G r . S M. Cl r , A Sh rt t r f A tr l 64 ( 6 . Cf. . G r , r r nd v rt 442 (S h l nb h nd t n d. 6 . A r lt th h v pr f rr d t l r th r th n ll Cr n l nd n rd r t r t n th n rn d n r nt f v l f r th t t . A b r G v rn nt nt p r n nd d pt d n r l p l t l ll Cr n l nd th r ft r. h C n rv t v G v rn nt l t d n 24 r v r d th p l , nd p r tt d nv r n f l t l nd l ntr t . S b nt h n f v rn nt h v r lt d n v n bl h ld r th r ht t nv rt fr l nd ntr t t l r th r v r , d th r r 88 d ff r nt t p f Cr n nd A t t n r n S th W l , v r l nd r ntr l f th p rt nt f nd , th W t r C n rv t n & Irr t n C n, nd th W t rn nd C n r. C. K n , pr n t 6 , t 260. 4 Ad n tr t n f th Ar t bl h d nd r th M rr b d Irr t n A t 0, A t . 42 ( .S.W. . h r n t ll r d n t r d b tr p rt t r t r pr nt n th p rt nt f bl W r , nd , nd A r lt r . It r pl d b th pr nt C n n 2. Irr t n A t 2, A t . ( .S.W. . r v n r l t n t S th W l rr t n t r f nd n th Irr t n A t 2 ( .S.W. , nd Cr n nd C n l d t n A t 6 , II 4 ( . SW. . In 6 th M rr b d Irr t n Ar n p d 4 ,26 r nt n n 2 6 bl , 26, 0 r f h h r rr t d. W t r C n rv t n & Irr t n C n ( .S.W. , Ann l p rt f r th r nd d 0th n , 6 , t 80. 6 BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL'LAW REVIEW
t r n xp r n , l l ntr l nd n d t t r . It d d, h v r, b rr v r l f t r f th t xp r n — l r ttl nt th d t p p l t th l nd, nt n v f t r n r rr t d, nd th p l r h r f r t r h th r d r n t. 6. Later Developments.—The t r n nd S th W l xp r n f th rl d d f th 20th C nt r t th p tt rn h h h b n f ll d n A tr l v r n . Onl n r lt r t n h v b n ntr d d n l t r r . . Soldier Settlement 1920-1930. Aft r W rld W r I th rr t n th r t nt n d th l r ttl nt t v t h h h d b n b n n v r l l t n n t r nd S th A tr l , nd n th M rr b d Irr t n Ar f S th W l . h p t r t v t d ff r d fr th rl r ff rt n t r p t . r t, th b l f th ttl r r r t rn d ld r th n xp r n n rr t d f r n nd n p t l t ntr b t t th d v l p nt f th r f r . S nd, ll thr t t f ll d th r nd t n f El d M d, rr t n n rl ll f th r lt r l bl ( nd th r ll: ft n n t l r r th n 0 r . h ttl nt nt d f r d bl n f th rr t d r n th t t n th 20 , nd r t d l r v l f fr t nd d r pr d f r xp rt, th t A tr l h ft d fr n t p rt r t n t xp rt r f th pr d t . h ttl nt pp rt d th r th f h t f ll ntr t n nd r t d r l t v l d n r r l p p l t n n f l f r . Unh pp l , th r th nd d v l p nt h v d t r t f n n l t t th rr t r nd t th t t . h h v d bt t nt f t t l n b rr d b th rr t r t h h nt r t r t j t ft r W rld W r I ld n t b r p d ft r th ll p f r t pr n 2 . h n rr t r r n xp r n d nd ld n t th b t f th nd t n nd r h h th p r t d. h ttl nt pr v d t b n d t l pl nn d. M n bl h d b n l t d n p r l , r p r ft n n t d t th l , n t r l dr n pr v d n d t nd n pr v n h d b n d f r rt f l dr n . A r lt bl r r n d b lt n f th l r t rl n . M t bl r t ll t pr v d ff nt n t pp rt f l . ° h t t v nt ll pt d th pr n pl f th "h nt n n r ," h h r r th t bl b l r n h t rn n n ff nt t pp rt f l , nd b n pr f n l d t n bl nt l r r n t . In th 0 , th pr n r tl l r t d th l t n f rr r n p nt b
6 On th pr bl f th 20 , n r ll C. K n , pr n t 6 , t 2 6 , 2 4 th rf rd, pr n t 2, t 22 24, 2, 4 4 .
660 AUSTRALIAN AND AMERICAN SYSTEMS
settlers, and the process of cancelling the major portion of settlers' debts began. Very little development of these intensely irrigated areas continued after 1930, since the period was devoted to readjustment of existing settlements. b. S ppl nt r Irrigation in New South Wales 1930-1940. Also in the 1930's, New South Wales, deviating from its policy of de- veloping small irrigated blocks, brought water supplies as a form of drought protection to a large area along the River Murray. Only one acre in ten was to be watered, as a form of supplementary irrigation." This region was divided into several sparsely irrigated Irrigation Districts, which are distinguished from the intensely irrigated Irriga- tion Areas.
• c. Prior Appropriation in New South Wales 1930-1946. Prior appropriation was adopted in New South Wales in 1930" in order to create a more secure water right in times of shortage. It was adopted at the recommendation of Elwood Mead," on the basis of his long experience with irrigation in the western United States. Prior appropriation followed the maxim "first in time, first in right," by which licenses are given priority of right on the basis of date of application. During shortages, licensees would be cut off in inverse order of date of application, the holder of the most recent license being cut off first." The new doctrine replaced the old procedure whereby during shortages the state would proportionately reduce allotments to all licensees." The New South Wales prior appropriation system adopted use preferences similar to those in some jurisdictions of the United States." All licenses in a superior class would be given priority, regardless of date, over all licenses in an inferior class." The order of preference classes was: Class I: domestic, municipal, and railway water supplies and water supplies needed for hydropower stations; Class II: all other purposes, including manufacturing and many forms of irrigation, except those in Class III; and Class III: irrigating pastureland."
th rf rd, pr n t 2, t 4 4 . 8 W t r (A nd nt A t 0, A t . , § 2(n ( .S.W. . S E. M d, M r nd r p t n All t n f M rr W t r , nd A nd nt t G v rn n W t r ht , .S.W. rl. p r , ( 2 . 8 r d n f pr r ppr pr t n t pr t d n th t rn Un t d St t , pp. 688 nfr . 8 W t r A t 2 24, §§ 6 8 ( .S.W. . 82 S d n t pp. 6 4 nfr . 8 W t r A t 2 0, §§ 8 ( , (2 , ( ( .S.W. . 8 Id. § 8 (2 . 66 OS O CO EGE I US IA A COMME CIA AW E IEW
ld r f x t n l n r v n 2 nth t ppl f r n ppr pr t n l n h h ld b f l pr f r n nd n r t ll b nt l n ppl t n ." n ppl d f r l t r, h v r, ld b bj t th n h l t n rd r f pr f r n b d p n d t f ppl t n." h C n v nt ll f nd th t n f th rl l pr r t l n h d b n r d th t t n bl t d n t r th pr r ppr pr t n t ff t v l . Al , rr t r h d t nd n t l n f r l r r v l f t r th n th ld . In 46 S th W l b nd n d pr r ppr pr t n b t h d pr v d t b n r bl . It r t rn d t n npr r t p r t t nd d pt d "b n f l " l f t n f r v r rr t n d v r n l n ." n f l d f n d rr t n f pr v d p t r r h h r v l r p . hr l f b n f l r r t d: ( n rd r f pr r t ( d v r n t l t f v r ld, (2 d v r n t l t thr r ld, nd ( n d v r n . h l f t n r t b d f r tt n ff v r l n n t f h rt . h r , n ff t, pr f r n l f t n f r rr t n, v n r t r r t t ll t bl h d rr t r r n h h v l r p ." d. Closer Settlement Since 1945. Aft r W rld W r II, th t t n n d n r p d d v l p nt f rr t d l r ttl nt , dr n p n r t rn d ld r ttl r . h rr r f rl r l r nd ld r ttl nt r v d d h p bl . l nn n dv n d. l r d n d t b ff ntl l r t pr v d n d t n , nd r l t d n t bl l . r n t r n t ll d. M r t f r pr d t r n l z d. M t f th p t l t f th t r d tr b t n t r d b th t t . Ad t tr n n v n t th n ttl r . r t pr h v h ld p n 4 , th p t r ttl nt pr t b f n n l . At th pr nt t S th W l v r l p r n r f nl r n t nt n v l rr t d ttl nt , p ll n th n C l b ll Irr t n Ar . t r n l r r nt f t r v l bl t x t n r , nd d v l p n th M rr ll Irr t n Ar , b t pl nn n n n xp n n t
8 Id. § 8 ( . 80 Id. 8 S nd d n M t n Sp h b C p t W. . nn, M n t r f r C n rv t n, n pp rt f Irr t n nd W t r (A nd nt ll, l t v A bl , M r. 2 , 46, 80 .S.W. rl. b. d 28 , 2842 4 ( 4 46 . 88 Irr t n nd W t r (A nd nt A t 46, A t . , § 20 ( ( .S.W. , r n t d W t r A t 2 60, §§ ISA E ( .S.W. . 8 S th d n f th l f t n t nt t p. 6 4 nfr . 662 AUS A IA A AME ICA SYS EMS pr nt. t t d v l p nt nd r n S th A tr l , b t v r l l r pr v t pr rr t n pr j t h v b n d v l p d th r n th p t d d ." r v t d v r n r xp nd n r p dl n t r nd S th W l ll."
. Conclusion. —In t j r t p n 886 nd 0 nd l l b ll h nt t th r t , t r nd S th W l h v t th p tt rn f r t r d v l p nt n A tr l . h p tt rn h x j r l nt : ( Ab l t n f n l r p r n r ht (2 b t t t n f l n n pr d r f r ll d v r n x pt th f r d t , t t r, nd ll rd n 2 ( d t pr v n f r l t d t r ppl b n tr t n f l r t r r rv r (4 nv r n f r fr dr l nd f r n r ppl nt r rr t n t nt n v rr t n b n r r f th f ll n th d : ( p l r t r h r f r n nt t f t r h th r d r n t, (b l nd r d tr b t n f r th p rp f l r ttl nt ( ntr l f t r d v r n , l nd nd rr t n t b ntr l t t n nd (6 f n n n f p t l t f h d r nd d tr b t n n l f r ld r ttl nt t f th t t n r l r v n . A r lt, n 66 n th t rn A tr l n rl 2, 00,000 r r nd r rr t n." A tr l n rr t n p l t b b d n thr pt n : ( W t r h ld b d t pp rt th t pr d t v r lt r p r n t f l nd (2 h p t r ll pr t h h f t r, p r r nd
0 On p t r d v l p nt, C. K n , pr n t 6 , t 2 6 th rf rd, pr n t 2, t 26, 48 0. In t r , pr v t d v r n h v r n fr 6, 00 t 0,000 r n 4 . n bl , r v t Irr t n S h , 8 A ( t. 2, ( 6 . 02 r d n f p t f l n n , pp. 664 4 nfr . r nf r t n n rr t d r n A tr l , n r ll C n lth r f C n & St t t , Off l Y r f th C n lth f A tr l , . , t 00 , 0 , 0 4 ( 6 St t v r & W t r S ppl C n ( t. , ft S v nth Ann l p rt 6 62, t r p ll A n, r f t r f th r p ll S ttl nt nd r th ll S ttl nt A t 0 , t 4 (t p r pt r pr nt, n d t d . 66 OS O CO EGE I US IA A COMME CIA AW E IEW
(3) such intensive use of water is its most efficient and beneficial use. While these assumptions are open to challenge, there is no doubt that they are regarded as being responsible for Australia's flourishing irri- gation areas today." B. Licenses and Permits for Private Diversions Outside Organized Irrigation Areas About 22 percent of the irrigated acreage in Victoria, South Australia and New South Wales is located outside organized govern- ment or private irrigation areas' and is watered under licenses issued to individual diverters. These licenses are obtained from the respec- tive state agencies: in Victoria, from the State Rivers and Water Supply Commission (Melbourne); in New South Wales, from the Water Conservation and Irrigation Commission (Sydney); and in South Australia, from the Engineering and Water Supply Department (Adelaide). The following discussion concerns the licensing systems estab- lished in those Australian states. The concepts developed to underpin this system have relevance to the water allocation issues emerging in the eastern United States today—a licensing system being a feasible alternative to the general American system of allocation by vested private rights. The law of these license areas is distinct from that of irrigation areas and is a subject suitable for another study."
4 S E. M d, pr n t E. M d, pr n t 4. M x pr d t v t p r r h b n pt d nr rv dl b n n r nd r n t th b t l n r lt r l pr d t n, nd p l t n h v n n r n t t n th ppr h, rd n t th rf rd. Int rv th . th rf rd, p t f G r ph , Un v. f S dn , S dn , .S.W., A . I, 6 . h v l d t f th pt n h b n h ll n d b n t . S . n f rd S th & . th rf rd, W t r nd nd C St d n Irr t n 2 2 4 ( 66 th rf rd, Int r t n f Irr t n nd r l nd r n n th S th rn M rr n— rt I: d f r ppr n th C n pt, 26 v. M r t n & A r . E n. ( .S.W. 22 ( 8 , rt II: lt f r h n " ld St d Ar " 6 8, 2 d. 46 ( , rt III: Ev l t n f Int r t n nd S n f r th t r , 28 d. ( 60 . " Out f th 2,6 , r rr t d n th t t , 608, 00 r r ppl d nd r d v r n l n . S th r t t d n t pr . 6 In d r n z d v rn nt rr t n r , z bl p rt n f th t r ppl d nd r " p l r t r r ht." h th nt t f t r n d t th rr t n bl . In t r t n r f t f r h thr r . It t b p d f r h th r d r n t. r l d th " p l r t r r ht" pr v d n h t r, nd r b p r h d t t. nd tr n f r, bd v n nd n l d t n r tr tl ntr ll d t nt n th x t n f f l z d rr t n bl . In t r th d n b ntr ll n th d p t n f th " t r r ht." In S th A tr l nd S th W l , th n l th rr t n bl nd n ntr l th r d p t n ll. rf t r f t r r ht r l r lt fr t f l f th l nd r x v d f lt n n p nt f r t r, r nt, l nd ntr t n t ll nt , r n t ll nt n Cr n d v l p nt l n . Irr t n n d r n z d rr t n r n tr ll d r p t v l b th St t v r nd W t r S ppl C n ( tt. , th W t r 664 AUSTRALIAN AND AMERICAN SYSTEMS
n f l n n pr d r n t r , S th A tr l , nd S th W l ll f r t d l th th r f r l z d tt r , h th t p f d v r n h h t b l n d, nd t n tt h d t l n , f nd th t r f th l n . h n tt r nv lv n d n tr t v d r t n ll b d d: r t r f r r nt n r d n n l n ppl t n , pr t t n f x t n , r tr t n n t f h rt nd t r n t n f l n . . G n r l r v n . h l n n pr v n f th A tr l n t r t n t nl "n t n l z " th t r f th r p t v t t ," th pr h b t th t n f r ht t t r b pr r pt n" nd t f r nj r t r p r n r ht b t n l n d d v rt r ." n n f ll d v r n r r d th th f ll n x pt n : ( d v r n f r d t nd t t r ppl " (2 d v r n f r rr t n ll rd n ?" ( t r t d nd t n d n d t r t n rf r n ff, pr v d d th fl f t r n n t r r n t n bl d n h d " (4 t n t r f r d t p rp ( . ., b b t nd t r n t t t r r h r th r b p bl r d r p bl fr nt r rv " nd
C n rv t n nd Irr t n C n ( .S.W. , nd th p rt nt f nd , Irr t n r n h (S . A tl. . S n r ll W t r A t 8, A t . 64 ( t. Irr t n A t 0 46 (S . A tl. Irr t n A t 2 ( .S.W. . W t r A t 2 66, § 4A( ( .S.W. W t r A t 8, A t . 64 , § 4( ( t. C ntr l f W t r A t 2 , § 4( (S . A tl. , h h ppl nl t th v r M rr fr M nn t th t rn b rd r. Id. § 0 . th r t r r h v b n pr l d n nd r th A t. tt r fr . . r d n, r t r & En n r n Ch f, En n r n & W t r S ppl p t (S . A tl. t th r, A . 4, 6 . . 8 W t r A t 8, A t . 64 , § 8 ( . C ntr l f W t r A t 2 , § (S . A tl. . " E. ., W t r ht A t 8 6, 60 t. . 20 ( .S.W. n n v. Gr G ll G ld M n n C ., 2 .S.W. . . ( . 2 ( 00 . 00 W t r A t 8, A t . 64 , §§ 6, 204 ( tt. C ntr l f W t r A t 2 , §§ 8, ( (S . A tl. W t r A t 2 66, § 0 ( .S.W. . 0 W t r A t 8, A t . 64 , § 4 ( t. ( nl b n r f l nd l n t d fr th Cr n b f r . , 886 C ntr l f W t r A t 2 , § 7 (S . A tl. W t r A t 2 66, § 0 ( .S.W. . 02 W t r A t 8, A t . 64 , § 4 ( t. ( r C ntr l f W t r A t 2 , § 8( (b (S . A tl. ( r W t r A t 2 66, § ( ( .S.W. ( r . 0 W t r A t 8, A t . 64 , § 4(2 , nd d b W t r A t 64, A t . 8, § 2( ( t. C ntr l f W t r A t 2 , § 4(2 (S . A tl. W t r A t 2 66, § ( .S.W. (d nd t n n t r r nl . h pr v n pr b bl r th r lt f v r l h h ll th pt r f d ff d rf t r b f r t r h t r r . E. ., l r v. St. l n C rp., 6 Ch. . 264 ( 8 . 04 W t r A t 8, A t. . 64 , § 6 ( t. C ntr l f W t r A t 2 , § A( (S . A tl. . h t p f pr v n n t n n n n th Un t d St t . S
K n. St t. Ann. § 42 ( 64 .M. St t. Ann. 4 ( 68 . 66 BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL LAW REVIEW
(5) diversions for mining purposes made under authority of a miner's right?"
The administering agency is not required to grant an application for a license.'" The statutes do not provide any criteria for the granting or denial of a license. A license gives the licensee a right to divert water and to con- struct ditches on any Crown land as specified in the license.'" A special easement license is available to enable nonriparian licensees to con- struct diversion ditches across property owned by others to obtain access to the water.'" The diversion license is not personal to the licensee, but inures to the benefit of the lawful owner or occupier of the land where the water is licensed to be used.'" As a result, the water must be used on the designated land, and a transfer of the right to divert to another location can be accomplished only by obtain- ing a new license. 2. Conditions of License.-Typically a license has a number of con- ditions regulating how it is to be used. Generally the state agencies may impose any conditions they see fit.'w Conditions frequently im- posed control the location and size of the land to be irrigated, the purpose to which the water will be put, and the size and location of the diversion?" For example, in New South Wales, new licenses for pumping from the River Murray are restricted to a maximum of 400 acres. Licenses for irrigating vines or citrus trees are for a maximum of 50 acres. But older licenses for larger areas customarily are renewed?'
08 W t r A t 8, A t. . 64 , § 6 ( t. M n A t 8, A t . 6 20, § (2 ( t. C ntr l f W t r A t 2 , § 8( (S . A tl. M n n A t 0 , §§ 0( , 6 08 (S . A tl. . h S th W l A t d n t r r l n f r d v r n f r n n p rp . W t r A t 2 66, § 0( ( .S.W. M n n A t 06 6 , § ( (f ( .S.W. . 06 W t r A t 8, A t . 64 , § 204 ( t. C ntr l f W t r A t 2 , § 6( (S . A tl. W t r A t 2 66, §§ ( ( , 2( ( ( .S.W. . 0 W t r A t 8. A t . 64 , § 204 ( t. C ntr l f W t r A t 2 , § ( (S . A tl. W t r A t 2 66, § ( .S.W. . °8 W t r A t 8, A t . 64 , § 20 ( t. W t r A t 2 66, A( ( .S.W. . h th v l l " nt f d t." S p. 6 pr . 0 h d tr n ppl nl n S th W l . W t r A t 2 66, U 6, 8Q ( .S.W. . In t r th l n , h h n r ll p r th l n t use t r n p rt l r l nd, tr n f r bl h tt l nt r t. W t r A t 8, A t . 64 , § 204 (W t. . 0 W t r A t 8, A t . 64 , §§ 204, 206 ( t. C ntr l f W t r A t 2 , § 6 (S . A tl. W t r A t 2 66, § 20 ( ( .S.W. . W t r A t 2 66, § ( ( .S.W. l t n nd r C ntr l f W t r A t 2 , S h. , l n , nd t n (S . A tl. G z., O t. 2 , 4 t r n t v rt W t r nd C t , nd t n , 6 ( r W. . . . S n bl , pr n t , t . 2 Int rv th A. n n, t. En r, rr n Irr t n t., W t r C n rv t n & Irr t n C n, nl , .S.W., O t. 0, 6 . 666 AUSTRALIAN AND AMERICAN SYSTEMS
Beneficial application of water is required and waste is prohibited."' In order to cope with a water shortage or other emergency, the state agencies are given authority to revoke, modify or suspend licenses.'" These license conditions give the state agencies great power to direct land and water development according to their desires. . f r n .—In Victoria and New South Wales, a relatively low charge is levied for the volume of water actually diverted under a license or annual permit."' In Victoria; meters often are installed to measure this volume," 6 but the charge for the volume of the licensed diversion is paid whether or not the diversion is 'actually made."' This charge is similar in principle to the "compulsory water charge" levied inside irrigation areas. 4. r f n .— h mainland Australian states have uni- formly adopted a policy of issuing licenses for relatively short terms of years. In Victoria, the term of a diversion license may not exceed 15 years."' In practice, the initial term of a new license is four years, and subsequent renewal terms will be for the full 15 years."' Renewal is not automatic.' Application for renewal would be denied if the licensee were not taking the water licensed.'" Since 1909 an annual permit has also been available.' Licenses in Victoria are normally issued for diversions from streams in which the summer flow is maintained by releases from storage reservoirs or from streams where there is an assured natural summer flow, and only to the extent diversions can safely be made in a season of below-average stream flows. Permits (permissions for diver- sion for one year or less) are issued for all other diversions, such as diversions drawing on nonassured streamflows, off-season diversions, or diversions for limited periods."' While annual permits are not auto-
W t r A t 2 66, § A( ( ( .S.W. C ntr l f W t r A t 2 2 , § 8( (b (S . A tl. t r n t v rt W t r nd C t , nd t n 2, 6 ( r W. . . . 4 W t r A t 2 66, § A(2 ( .S.W. C ntr l f W t r A t 2 , § 8( ( (S . A tl. t r n t v rt W t r nd C t , nd t n 8 ( r W. . . . S d n f r tr t n n t f h rt t pp. 6 4 nfr . W t r A t 8, A t . 64 , §§ 204, 206 ( t. C ntr l f W t r A t 2 , § 6(2 (S . A tl. W t r A t 2 66, §§ 4A, I4 ( .S.W. . 0 S ppl f t r b r th r z d b W t r A t 8, A t . 64 , § t86
W t r A t 2 66, § 4 (2 ( ( .S.W. Int rv th . .C. n bl , S p r nt nd nt f W t r tr b t n, St t v r & W t r S ppl C n M lb rn , t., n 2 , 6 . t W t r A t 8, A t . 64 , § 204 ( t. . 2 n bl , pr n t , t 4. 22 Id. 2 A rd, W t r ht , 8 A ( t. , 04 ( . 22 W t r A t 8, A t . 64 , § 204 ( t. . 2 n bl , pr n t , t 4. 66 BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL LAW REVIEW matically renewable, many people have come to feel that holding a permit for an unbroken succession of years confers some sort of right to continued renewal.' The Commission feels some sort of informal obligation to renew licenses and permits unless special circumstances exist, but it denies a duty to do so. South Australian licenses for diversions from the River Murray are issued by the Engineering and Water Supply Department. The term of the license is one year. 2 Licenses and annual permits in New South \Vales are issued by the Water Conservation and Irrigation Commission. The term of a license may not exceed 10 years,'" and in practice the Commission usually grants licenses for periods not ex- ceeding five years.'' Short term permits are available for irrigation of areas not exceeding 10 acres.' Such permits may have a maximum period of two years,' but, in practice, the Commission issues annual permits.'" While licenses and annual permits may not be renewed of right, ' the Commission generally renews them unless circumstances and conditions have changed.'" 5. Criteria for Granting or Denying Applications for Licenses and Renewals.—The state agencies, then, are under no duty to renew li- censes or to grant them."' Since the statutes provide no standards for the granting or denying of applications for licenses and renewals, the state irrigation agencies have been given great administrative discre- tion in making such determinations. Several basic questions of policy exist within the scope of this discretion. These include the problems of determining when there is water available for new uses, by whom and where it should be used, the type of agriculture or other economic activity to be promoted, which of conflicting applications for licenses to grant, and when to refuse applications for license renewals either because water is needed for new uses or because the licensee is using water improperly. Very little has appeared in the literature, been decided by the courts, or
24 A rd, pr n t 2 , t 04 0 . On l v r h rd n th v r M rr h d v rt d t r nd r nn l p r t n . Int rv th . .C. n bl , pr n t . 2 h t r t nd r th r t f C ntr l f W t r A t 2 , § 6(2 (S . A tl. . 20 W t r A t 2 66, § 2( ( .S.W. . 2 Int rv th A. . M r, En n r, W t r ht S t n, W t r C n rv t n & Irr t n C n, S dn , .S.W., l 24, 6 . 28 W t r A t 2 66, § 8 ( .S.W. . 28 Id. § 8 . Int rv th A. . M r, pr n t 2 . 131 See W t r A t 2 66, § 4( ( .S.W. . : 2 Int rv th A. . M r, pr n t 2 . • W t r A t 8, A t . 64 , § 204 ( tt. C ntr l f W t r A t 2 , § ( (S . A tl. W t r A t 2 66, .4 ( .S.W. . 668 AUSTRALIAN AND AMERICAN SYSTEMS b n d f n d b r l t n n th tt r . n , th f ll n d n n p t f th pr bl t, f n t , b p tt . n r r nt d nl h n t r v l bl f r d v r n. S h t r x t f th fl n tr h n t b n f ll ll t d, f pr v d r l t n h n r d th n fl n tr , r f dd t n l ppl h v b n r t d fr n t r r rv r . G n r ll , th l t t hn h d b t nt l n r n pr v t d v r n n W rld W r II. In t r b t n 0 nd 20 p r nt f th n ppl d v l bl fr th E ld n rv r, th Sn v r d v r n, nd ll r r rv r h v b n ll t d t pr v t d v r n . S b t nt l n r n pr v t d v r n h v r d n S th A tr l r lt f rpl t r n nd pr v d r l t n f th v r M rr . h r th b xp t d t nt n th n r d ppl fr Ch ll r v r, n nd r n tr t n, b v l bl . r v t rr t n n S th W l n b xp t d t n r ppl fr v r l n r rv r nd fr th Sn v r d v r n r ll t d. A r lt f th r th, pr v t rr t n h b r l t v l r p rt nt th n n th p t, p ll n S th A tr l . It n t t t 22Y2 p r nt f ll rr t d r n th thr t t b n d, p r nt n t r , 26 p r nt n S th W l nd 6 p r nt n S th A tr l Wh l th t t rr t n n d pr t pr v t rr t n, n h r h v th nd t d th b n h h th d d h h ll b ll t d t h p pl nt. In n r l, l n h t r h f tr pr v t d v r n ll b ll d nd h t t p f r lt r ll b pr t d r p l t l d t r n t n th n th r n f h p d b ph l nd t n . Wh t nf r t n d x t n d n tr t v d r t n , n t fr th t t t ,n° b t fr rt pp l fr d n tr t v d n . App l fr l n nd r n l nd t n nd d n l h v b n p bl h d nl n S th W l .
4 On th p f d n tr t v d r t n n r ll n A tr l , . nj f ld & . Wh t r , r n pl f A tr l n Ad n tr t v ( d d. 66 . n bl , pr n t , t 200. 6 S n t pr . 88,26 r t f ,262,66 r n 6 66. S th r t t d n t pr . 8 8,42 r t f , 08,4 r n 6 66. S th r t t d n t pr . 8 ,606 r t f 28,8 r n 6 66. S th r t t d n t pr . b n v. W t r C n rv t n & Irr t n C n, 6 nd& l. Ct. , 60 ( .S.W. G br lt r t . td. v. r d S r C ., 6 nd & l. Ct. 2, 8 ( .S.W. . 4 App l fr d n f th W t r C n rv t n & Irr t n C n b d t th l nd rd r p l tr t , nd th n t th nd nd l t n C rt. W t r A t 2 66, § (4 (6 ( .S.W. . h r n t t t r pr 66 BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL LAW REVIEW
h d n h th r, t r nt r d n n ppl t n f r, r t pl nd t n n, l n r r n l n S th W l b d n th "p bl nt r t." " Wh t n t t t "p bl nt r t" h n v r b n d f n d n th , lth h r d n f th d l th p n nt : ( A n n dv nt r b n f t t n r r r p r n l ndh ld r t b b l n d n t n ppr h nd d r p bl d dv nt r pr j d t th r r p r n l ndh ld r " r t th p bl . " (2 A r t bl d tr b t n nd b n f l f t r h ld b pr t d." ( h C n b l t t ntr l t n fl r t n r h ld n t b ff t d pr j d ll . 4 (4 ndh ld r h ld b n r d t n rv t r. ( h r t r p bl nt r t r p bl b n f t h ld b rv d. h r r t h h ll tr t th l t p n nt. In n , n rr t n h f r r n f dd r r p f r r l l h ld t b n th p bl nt r t b t b n f t d th r r l n . h d v r n was ppr v d v n th h th ppl nt ld t r th n h t bl h r f l t d t r
v n n rn n pp l fr d n tr t v •d n b th t t rr t n n n t r nd S th A tr l , b t nd r th n l h d n r r v bl . S . nj f ld & . Wh t r , pr n t 4, t . d l r v pl dl r n z d b W t r A t 8, A t . 64 , 0(2 ( t. , h h t t th t b l d b th C n r th r t t t r th r t n t b p h d in n rt f p tt n r b f r j t . 42 r th t v. Sh lh v n Sh r C n l, 44 nd & l. Ct. , 8 ( .S.W. 6 W t r C n rv t n & Irr t n C rn n. v: S th W l t r l C ., 24 nd & l. Ct. 4, ( .S.W. 4 .W. h , t td. v. W t r C n rv t n & Irr t n C n, 6 nd & l. Ct. , 6 8 ( .S.W. . 4 rr nt v. W t r C n rv t n & Irr t n C n, nd & l. Ct. 0, 4 ( .S.W. 8 G br lt r t . td. v r d S r C ., 6 nd & l. Ct. 2, 8 ( .S.W. b n v. W t r C n rv t n & Irr t n C x , 6 nd & l. Ct. , 60 ( .S.W. h rp td. . W t r C n rv t n & Irr t n C n, 6 nd & l. Ct. 62, 66 ( .S.W. . 2 tht r t t r r t t n d. v. K ll Inv. C ., 2 nd & l. Ct. 8, 2 ( .S.W. 42 E t t f S th ll v. C n d n , 20 nd & l. Ct. 8,22 2 ( S.W. 4 . 44 h rp td. v. W t r C n rv t n & Irr t n C n, 6 nd & l. Ct. 62, 66 ( .S.W. 2 .W. h t . td. v. W t r C n rv t n & Irr t n C n . 6 nd & l. Ct: , 6 ( :S.W. . 4 .W. l rtn r h p v. W t r C n rv t n & Irr t n C n, [ 64 6 .S.W. . 848, 82 .S.W. W l . , 88 ( nd & l. Ct. 64 W t r A t 2 66, § 4A( ( .S.W. . 4 th r t t r r t t n d. v. ll Ir v. C . 2 nd & l. Ct. 8, 2 ( .S.W. 42 . 4 , Id. t 2. 4p S W t r C n rv t n & Irr t n C rn n n v. S th W l t r l C ., 24 nd & l. t. 4 6 ( .S.W. 4 .., 6 0 AUS A IA A AME ICA SYS EMS
ppl . h l n nt n d nd t n h h ld pr t t d n tr r p r n l ndh ld r ." In th th r , d f r n r ntl n d d p bl t r ppl pr f rr d t pr rv n n n d ll v l ldf ld f r p bl r pt n f n n n th f t r . It l r th t n ppl t n f r l n f r n r t r th n n lt rn t v n h h d n t r r l n n h ld b r nt d. t n t , th d r t n f th C n n d t r n n h th r l n r r n l h ld b r nt d, th r th t nd t n , d . In S th W l , h rp td. v. W t r C n rv t n & Irr t n C nnn n, th rt d: h d r t n ntr t d t th C n b th St t t d , nd th n d r t n h h r r v r , th t n t n f th f tt r n f th t d r t n b r l h ld b v d d. h C n f n t n r n t nf n d t th d n tr t n f th l n n pr v n f th W t r A t. Und r th t nd th r l l t n th xt nd v r d f ld f nt r r l t d bj t tt r , nd th C n th p l rl ll t t d, b xp r n nd r p n b l t , f r th ppr t n f th tt r h h h v b r n n th d n f l n n ppl t n. bl nt r t nd th nt r t f nd v d l h h b ff t d b th r nt n f n ppl t n r , n d bt, th n n d r t n . It n t l p bl t dr h rd nd f t l n b t n h t f ll nd r n f th h d nd h t nd r th th r, n th r f nj r t th p bl nt r t d p nd p n, r b v d n d b , th r f nj r t nd v d l n t r t . W th n th xt n v f ld f p bl nd nd v d l nt r t, d d r t n ntr t d t th C n.
.. h r nt n r r f l f th ppl t n d b th l l t n tt r f d r t n— d r t n t b x r d n t rb tr r l r pr l b t p n n d r t n f th tt r f p bl r nd v d l nt r t h h r r l v nt n th p rt l r . "
4 Id. I r th t v. Sh lh v n Sh r C n l, 44 nd & l. Ct. , 8 ( .S.W. 6 . 2 M r All v l b l t v. M n p l t Of W ll n t n, 20 nd & l. Ct. 2 ,. 4 ( .S.W. 4 . 22 6 nd & l. Ct. 62 ( .S.W. 2 . Id. t 66, 68. 6 OS O CO EGE I US IA A COMME CIA AW E IEW
Thus the burden is on the applicant to establish that the license ought to be granted,'" or renewed.'" 6. r n t n f n nd r t .—G n r ll , licenses and permits may be terminated by the state if the licensee or permittee violates the conditions of the license or permit.'' The state agencies may impose any conditions on licenses or permits that they see fit,' although frequently the statutes require certain conditions.'" Typi- cally, licenses and permits may be terminated if water is taken in a quantity in excess of what is expressly authorized,'" if the water is not being beneficially used,'" if it is being wasted, " if the diversion work is not being beneficially used,' if the water is being used at an unauthorized location,'" if excess land is irrigated,' if water is used for an unauthorized purpose,'" or if the required charge is in arrears.'" . r t t n f Ex t n U .— h administering agencies of the Australian states consider themselves at liberty to license new diver- sions even if they will interfere with existing diversions,'" so that older licenses generally have no priority over newer licenses. To date very few licensees have been cut off to give way to new uses. Generally
4 Id. t 68 6 , 4. .W. f rtn r h p v. W t r C n rv t n & Irr t n C n, 64 6 .S.W. . 848, 82 .S.W. W l . ( nd & l. Ct. 64 . 6 W t r A t 8, A t . 64 , § 204 ( t. (b pl t n C ntr l f W t r A t 2 , § 8( ( (S . A tl. W t r A t 2 66, § A( (b ( .S.W. . W t r A t 8, A t . 64 , §§ 204, 206 ( t. C ntr l f W t r A t 2 , § 6 (S . A tl. W t r A t 2 66, § 2( ( ( .S.W. . 2 S d n f t p l nd t n p d n l n , pp. 666 6 pr .
W t r A t 2 66, § A( ( ( .S.W. t r n t v rt , W t r nd C t , nd t n , 2(b ( r W. . . . 6° W t r A t 2 66, § A( ( ( .S.W. t r n t v rt W t r nd C t , nd t n 2 ( r W. . . . 6 W t r A t 2 66, § A( ( ( .S.W. C ntr l f W t r A t 2 , § , 8( (b (S . A tl. t r n t v rt W t r nd C t , nd t n 6 ( r W. . . . 62 W t r A t 2 66, §§ , A( (d ( .S.W. . 6 l t n nd r C ntr l f W t r A t 2 , S h. , l n , nd t n (S . A tl. G z., O t. 2 , 4 t r n t v rt W t r nd C t , nd t n ( r W. . . . 64 W t r A t 2 66, § A( ( ( .S.W. l t n nd r C ntr l f W t r A t 2 , S h. , l n , nd t n 2 (S . A tl. G z., O t. 2 , 4 t r n t v rt W t r nd C t , nd t n ( r W. . . . 6 t r n t v rt W t r nd C t , nd t n 6 ( r W. . . . 66 Id. nd t n 2( . 6 M C t h n & n , Ad n tr t v nd l r r n A tr l , 8 A ( tt. 2 ( 6 ( t r n pr t . E t, t r n W t r — p r n ht 6 ( . 4 . In t r th C n n t p ll d t ppl t r t n p r n r rdl f n th r pr v n n th W t r A t r n n r nt. In dd t n, t n t l bl f r n d nt l f l r f t r ppl . W t r A t 8, A t . 64 , § ( ( tt. . 6 2 AUS A IA A AME ICA SYS EMS th n h v pr t t d th ppl f t r t l n , p r t , nd p r n x r n th t t t r r p r n r ht ( x pt d d v rt r . Wh r t r h pr v n n ff nt, th ppl h b n n r d b n tr t n t r . h pr h h nn t b nt n d f r h l n r b r v r n th v r M rr b n, p ll n t r , r l t pl t l r l t d. " In th f t r v r r l t n ll r h th r th n h v n d t t nt n pr v d n t r t l n , nn l p r tt , nd x pt d d v rt r . l t n n t r nd n S th W l h d l ht n th t n. In t r , r l t n ntr ll n th x r f t t t r r p r n r ht t b fr d t pr t t th t t t r r p r n r ht f nl n d nt r d t l ndh ld r . " M r v r, h n pl nn n t t r , th St t v r nd W t r S ppl C n t d t r n t h t xt nt th ppl f t r t pr p rt n t b n f tt d b th r ld b nj r l ff t d nd h th r f rth r r h ld b n tr t d t pr v d p n t n t r ppl ? Wh l th pr v n n t r t l l bl t n n th C n t r nt ppl f t r t l n , nn l p r tt , nd x pt d d v rt r , th d r t p l fr r b h h th C n ll tt pt t pr v d h t r. In S th W l , pp l fr d v r n l n ppl t n d n r nt rpr t v f th W t r C n rv t n nd Irr t n C n bl t n. It h b n h ld th t th C n t n t r nt l n h h ll d pr v l r "r p r n " f th r r n bl h r f v l bl t r f r p rp x pt fr l n n nd r th W t r A t nd r th t t t bl d tr b t n n pt, h r lt ld b pr j d l t th p bl nt r t." h C n t b l n th n n dv nt f b n f t t th ppl nt n t th ppr h nd d r p bl d dv nt r pr j d t th r r p r n . 2 h pp r t r t d t n th C n t pr t t th ppl f t r t l n , nn l p r tt nd x pt d d v rt r . 8. tr t n n f Sh rt .—St t t f th A tr l n t t
°8 Gr n, M r nt nd Ev l t n f th W t r r f t r , 0 . In t t. En r A tl. 4 , 0 ( 8 h, Irr t n, t nt l nd r bl , n W t r r U nd M n nt 2 , 22, 2 ( 64 ( r d n f t n l S p n W t r r U nd M n nt, A tr l n A d f S n , C nb rr , S pt. , 6 . 6 W t r A t 8, A t . 64 , § ( t. . ° W t r A t 8, A t . 64 , § , nd d b W t r (Irr t n A t , A t . 6 82, § (2 , nd W t r A t 64, A t . 8, § ( ( t. . .W. f rtn r h p v. W t r C n rv t n & Irr t n C n, [ 64 6 .S.W. . 848, 82 .S.W. W l . , 88 ( nd & l. Ct. 64 W t r A t 4 2 66, § 4A( ( .S.W. . 2 S t d n t 44 pr . 6 OS O CO EGE I US IA A COMME CIA AW E IEW pr v d th t d r n t f t l r thr t n d t r h rt l n b r v d, p nd d r d f d." In t r , th C n r d th nt t f t r d l v r d t ll r pr p rt n t l , r t n r t r pr p rt n t nt t t l nd pl nt d th fr t tr , v n nd th r pl nt h h r r d ff lt t r t r t pr d t n th n t l nd n th nn l pl nt . G n r ll , n t r , nn l p r tt ll b t ff b f r l n ." In S th A tr l r d t n r pr p rt n t ." A t t t r l f t n t d pt d n S th W l n 46 t ff t th p tt rn f r tr t n d r n h rt . hr l f l n h v b n t bl h d ( n rd r f p r r t :In Cl A— r p h h h v b n rr t d f r t l t r nd r pr v d p t r r h h v l pl nt ( . ., fr t tr , v n , r t v t bl , r l Cl — r p h h h v b n rr t d f r t l t r nd l nd t l t p r nt f h h nt n pr v d p t r r h h v l pl nt nd Cl C— ll th r l n . r n h rt t r t ff t h l n nv r rd r f p r r t nd r d d pr p rt n t l th n h l . h n fl t b t n v r d r n t f h rt h v b n n f n d l r l t r lt r l . r l ttl nd tr l t d n th nt r r— tl f d pr n pl nt nd b tt r . C n ntl th d n t r n n h v t rr v r l ttl b t pr v d n nd tr l t r ppl r b t p ll t n f th r v r f th nt r r. C. Comment on the Australian Experience A tr l n l n pr t ll p n th p l t l nd d n tr t v pr t pr rv th nd v d l r ht t t bl f th r r . hr h t pr t n f p bl r , t h t t d th d dv nt f l t n t b l t f ppl . Eff n f h b n f v r d b d n tr t v ntr l f rr t n r nd pr v t d v r n , b n r nt f nt n v f r n , h h v l pl nt , nd l r l l ttl nt nd b th l v f f f r . h t t h v r d pl th r t (r r l x r d t h ft t r fl x bl t n . Y t th r l ttl pp r nt p f r pr v t n t t v n nn v t n r tr d n r ht , d n n h t
W t r A t 8, A t . 64 , ( ( t. C ntr l f W t r A t 2 , 8( ( (S . A tl. W t r A t 2 66, 8E ( .S.W. . 4 W t r A t 8, A t . 64 , ( ( t. . S n bl , r v t Irr t n S h , 8 A ( t. 2, 8 ( 6 . r f ll & G ll rd, G lb rn Irr t n S t n rth rn t r nd A t d W r , . In t l. En r A tl. 28 , 288 ( 6 . 6 C ntr l f W t r A t 2 , 8( (b (S . A tl. . W t r A t 2 66, 88 ( S.W. . 6 4 AUS A IA A AME ICA SYS EMS t r b n d ll t v l nd p l t ll . In th f t r th A tr l n t t f h rd r pr bl nd tr , r tr t d b n r t t l pp rt n nt f r d t r n th t rn A tr l nd r l t v n t n n th p t l t , t v nl nd t pr d n t l r lt r l r
II. A A YSIS O AME ICA OC I E A. S p f An l C nt t r h v t d f v h r t r t h h h ld b n rp r t d nt n d t f t r ll t n 8 ( h t r r ht h ld b r nd d f n t n nt t pr t nv t nt n t r d v l p nt. " (2 h t r ll t n t h ld pr t l t n l nd ppl t n l ff n f t x z d v l p nt. ( h t r ll t n t h ld b fl x bl t ll f r th ntr d t n f n . (4 bl r ht nd th p bl nt r t n t r h ld b pr t t d b th t . ( S p h ld b l ft f r t f t n f v r t f pr v t nt r t . " A r nt n th l ht f th r t r f th lt rn t v d tr n f r t r ll t n n th Un t d St t , x t n nd pr p d, n rd r. Wh l th l t r t r d n th v r d tr n t l r , n n t h v tt pt d t p r th tr n th nd n f ll f th d tr n . h t n ll x n f r j r n pt , r p r n , pr r ppr pr t n, t p r l n npr r
8 S , . .,. h r, W t rn Exp r n nd E t rn Appr pr t n r p l , n f W t r All t n ( . b r & S. r n d. 8 r l , A M d l St t W t r C d f r v r n v l p nt, 22 & C nt p. r b. 0 ( [h r n ft r t d r l , M d l C d ] r l , l f r W t r : r p rt ht , E n r , nd bl l t n, t r l r J. ( 6 [h r n ft r t d r l , l ]. r l d r b C r W ntr p thr n pt l l nt p n r t : ( l l rt nt , th pr t t n n t nl f l t , bj t t th "r l n rt nt " nd "f t n rt nt " n v t bl nv lv d n l l nfl t (2 ph l rt nt , th pr t t n n t v r t n n th nt t f t r v l bl f r th nd ( t n r rt nt , pr t t n n t l f th t r r ht b th x r f l f l t f th r . r l , M d l C d , pr n t 8, t 0 , d n C r W ntr p, C n pt U d E n Cr t r f r S t f W t r ht , 2 . nd E n. 2 ( 6 . 80 "An d l t r l h ld v t r r ht th h r t r t th t ll n r nd n bl p pl t th b t d n t t r n th r n nt r t nd h n lt t l n th p bl nt r t." r l , l , pr n t 8, t 8. 675 OS O CO EGE I US IA A COMME CIA AW E IEW
t p r t t nd r tpl n pt , th v t l t n n b n t t bl f r ll t n t r n th t rn Un t d St t . h A tr l n xp r n nd r t p r l n npr r t p r t t , d r b d n th f r t t n, ll b dr n p n h r r l v nt. . p r n ht . r pt n.— h r p r n t f t r r ht n f r n t f th E t rn t t : th t t xt nd n t rdl fr nd n l d n th t r f t t l n th t b n f th M pp v r. h t t r ll l f d "h d" f r t r l p rp nd th t th t pr v l n th r n d r d t pr pp n b nd nt ppl . p r n pr v d th t h pr pr t r f l nd b tt n n t r r h l r ht t t t r n h n r p r n l nd t r n bl xt nt. h r n bl n f th r d b t r l t n t d b th r n th t r r . W th x pt n , th t r t b d th n th t r h d f th t r r . h r ht n n d nt nh r nt t th l nd b tt n n tr n t n b th l nd n r r b t t d n tr t v n n r t p rf t t. " h nt f t r h h b t n b h pr pr t r n t f x d n v l nd v r th t . If th r n t n h t r f r ll d nd , ll r r d d nt l h r n bl th r p t t th r . t t n b n r t pl h th r d tr b t n. h r p r n r ht b x r d t n t nd n t l t by n n . p r n r l f ll t n h v b n d f d b p l l l t n nd b ntr t l rr n nt b t n r . 2. h r bl f S r t .— h r p r n r ht b r t z d n r , b n n t n d b t t b r n bl th r p t t th r r hth ld r , nd th r n t ntl h n n nd r n . 82 In n v n t t n, l t t n b th nl t d t r n r p r n r ht. App rt n nt d r t n fr h l t t n b r nd r d b l t b h n n r t n , n l d n n r nl r d b n np rt r . A r lt, r p r n n t r h rt nv r n nt t nd t v d nv t n n r t t l z th t r n rf tr , " nd t pr f r t d v l p lt rn t v ppl , h r nd t r. "
8 A d, br f p r n f th b d ff r n b tW n r p r n nd pr r ppr pr t n f nd n h r, Appr pr t n W t r El nt n p r n tr n St t , 0 ff l . v. 448, 44 ( 6 . 82 h nl f h h r p r n n b r d t . t h t r h n d f r d t r rdl f th ff t f h d v r n n d n tr r p r n , v n f h t ll th t r n th tr . S 6 A . r. W t r 4 ( 4 . Of r , n t tr th nt f fl d pl t n fr d t d v r n ld b v r ll. 8 C rt nl th th xp r n n S th l n th v r n p t r l 676 AUSTRALIAN AND AMERICAN SYSTEMS
p r n pr dv nt l n t fl x b l t . It ll n t b r t d th n f d ff lt nd v n th r ht th ld. hn l l nd n r th n t nh b t d b th x t n f t r r ht rv n d v l p d n n rl r . t th t r th n b nh b t d b th f r th t t r d nd ll t tr p ppl n t t n h r ll r h v rr l t v nd l r ht . p r n l t b b d p n n n p n pr th t f r ht t r r tr t d t th p r n h h v t th t r thr h th n r h p f th b n , nd f th p r n r tr t th r d nd n th t r t r n bl , th r n h f r ll. " Unf rt n t l , th th d b h h fl x b l t h v d—th d tr n f r n bl h r n — n t r bl h n th t r r pl v n h ll r th n n tr t d, nd th t v nt d fl x b l t x t nl t th pr f n r t f th r ht nd n nt d t r n t r r d v l p nt. h r p r n r ht, b n l ll n r nd r rt n r t n , n, h v r, b b l t r d b v r l l d v , f h h th h f r p l l l t n, ntr t r r nt n r , nd tr ht p r h f r p r n r ht r f l nd t h h h r ht r nn x d. l t n h b n n t d t nt th r p r n r ht f p l nt r t . A n th ld t x pl r th lld t , h h, n ff t, nt th r ht nn x d t x t n ll b pr h b t n th n tr t n f lld h h ld ff t th h d f r fl f t r t th x t n ll . " h n t n f fl th t th t r nt r r th n th t ff rd d b th n d tr t n th 880 nd 0 b f r th W t r ht A t 8 6, 60 t. . 20 ( .S. W. , b l h d r p r n r ht nd t bl h d th d v r n l n n t . S n , h rd p rt f l C n—C n rv t n f W t r, .S.W. t & r . , 24 2 (2d S . 88 . 8 In rth C r l n nd W n n, rr t r h v b n t rn n fr t r r t r nd t r f r r f t r. rt f th r n b th r p r n l nd l t t n p d b th W n n p r t t r th v r f r p r n n rth C r l n . Ev d n t , h v r, th t n n ll n f ld pr v t b ph ll r nv n nt t p r t th n p p l t d t tr d . . O t r h dt, An E n An l f W n n v r n r t S t f r A r lt r l Irr t n 220 2 ( h. . th , Un v. f W . W t r r C nt r 6 th, Alt rn t v W t r nd nd th Ad f r nt Arr n nt , n W t r r nd E n v l p nt n th S th , 62 (A r lt r l l In t t t ,. .C. St t Un v. 6 . 8 r l , l , pr n t 8, t . 86 A t v ll n r p r t fl (fl d l nd . M . G n. Ann. h. 2 , §§ 8. ( , nd pr h b t fl n f pr v l r t d ll . l. C d Ann. t t. 2 , § 0 ( M . G n. Ann. h. 2 , § 2 ( . C d Ann. §§ 62 , 0 , 0 ( 0 W . St t. Ann. § . 2 ( 6 . 6 OS O CO EGE I US IA A COMME CIA AW E IEW l r p r n r ht th l tt r b n r l r ht th t r n bl p r d t th r ht f th r r . h pr n pl f th lld t ld th t t h b n n rp r t d nt th n l n t t . 8 M r v r, l r t t t h v b n p d t pr t t n l nt r t . h l b nd d t " d d th l b r nd tr . r l d v r n t r nb rr b nd f r t n t n n h v b n pr t t d. r p n ppl f r th nd n t n f r p r n r ht f r p r r rv r nd p r n r t n. All f th n nt r t h v r d b l l t n t r r ht h h r ff nt d f t n f r p r n t b r f r th r p rp . In f t, t l l nfl t n v lv n t r r ht r dj d t d n th b f th p l l l t n r th r th n n th b f th n l f r p r n r ht ."2 In r f nt n t r , d nd n t tr p l l ppl . h h h pp n d n f nd tr l r v r n th E t In h t t n , th r ft n ll d v d th v l bl t r n th lv b ntr t r r nt. " h pr r t th v l bl fl
8 r v n pr r t t x t n ll , , . ., rp v. I ll El . C ., 6 I , .W. 20 ( 2 W nt rth v. r, 8 M . 24 ( 8 4 M r v. Sh ld n, 2 .I. 6 ( 8 2 . r v n pr r pt v r ht t ll ft r f r t r f r , , . ., dd n t n v. r dl , 0 C nn. 2 ( 8 4 Str l r v. dd, 0 S. & . 6 ( . 82 (l t r b nd n d n f v r f r p r n r ht , M C l nt v. Wh t r, l 84 ( . 8 S nd r v. n, 06 En . p. (K . 8 8 2 l t n , C nt r 40 . 88 h r r 802 p l l l t v fr n h n W n n f r d , l b , nd h nn l nd fl pr v nt . . r t, nd E n Gr th 40 4 ( 64 . h r nt n f th fr n h h ld t b v l d x r f th p r nt p bl r ht v r n v t n n C hn v. W C ., 4 W . 4, 2 M. 46 ( 8 f. M h. St t. Ann. §§ 22. . ( ( n bl n t nd p r f r v r pr v nt p n . " E. ., M . G n. Ann. h. 2 , §§ 40 ( 6 W . St t. Ann. § 4.26 ( 6 . h W n n S pr C rt h v d d ddr n t lf t th n t t t n l t f th W n n r nb rr t t t . Cr nb rr Cr r n t. v. El Cr nb rr C ., 0 W . 62, 6 , 4 M. 4, 6 ( 20 . 0 M nn. St t. Ann. §§ 0 .46, .64 (S pp. 6 W . St t. Ann. § 0 .0 (S pp. 68 . S , . ., M h. St t. Ann. ,§ 22. 688 ( W . St t. Ann. § . ( 6 . 2 h W n n p rt b r tn th t n l d tr n l n v rn d nl n r pr p rt n f th pr bl f tr r l t n. Of 8 br ht t th W n n S pr C rt v r f r t r f nl nd tr f n v t n r p r [fr 84 t p bl t n], nl 2 ( b t r nt t rn d n r ht r d t d f n d pl b n l n 8 p r nt f th l t th p rt p t n r t bl h d th n fr r f t t t l . h h ( h r t r t f n n t nth nt r l l t n th t t t r l t n tr f ll f r h rt f n t t t n pr h n v d , th r n n th l th pr n p l b d f p bl p l . . r t, pr n t 88, t 40 4 . 8 S , . ., t v Mf . C . v. t n W n C ., III. 2 0 ( 8 8 r v r n , 4 2 M h. , 2 M. 0 ( 02 l r v. r dr b r r C .,. . , 2 S.E. ( 22 K b rl Cl r C . v. tt n p r C ., W . 6 , 6 8 AUSTRALIAN AND AMERICAN SYSTEMS
r r t n nt rn l t f pr r t ." h r l ttl pr v t t r ll t n t r t d b ntr t ll r n v bl l n th n pt v r fl p tt rn r n t lt r d dr t ll . Al l t n b ntr t r r nt pp r t b f l t l f r l l z d t t n . O tr ht p r h f r p r n r ht r h n l r v l r f t r h v l t d n r l t v l ll tr h r l ttl p t t n f r t r x t . h r f nd t dv bl t t t p t pr v nt h p t t n fr r n n th f t r . A ppl f t r fr p tr n b d r r th r b p r h n th r p r n r ht f p tr r p r n r b p r h n th fr nt nd tt n ff r p r n r ht fr th v r d b l nd . th t hn h v b n pl d b th p lp nd p p r, nd t xt l nd tr n rth C r l n ." h p t nt l n r t f th r p r n r ht d n t t t h v h p r d d v l p nt f th r r t n r t xt nt. M t nd tr l r , f r x pl , pp r t f d th th r r p r n r ht nd l ttl n rn d t t t p t b l t r th . In th E t, h r t thdr l r nd tr l nd n p l, " r lt r l nd n rv t n nt r t t h v b n r t v th n nd tr l nt r t n pr t n p r t t t t t th t ld r pl th r p r n r ht. On th th r h nd, r r h n rth C r l n nd t th t h h t r nd tr r n rn d th th l l n r t f th r t r r ht nd t t p t f r th p." Y t, ll r r f nd tr l t r n th t t t , nd l h r , h v h n l n rn b t th r t f th r r p r n r ht ." h r b v r l r n f r th . h r t r d nd b ll
40 N.W. 066 ( . S t , Ar W t r ht M r t bl n W n n ? 66 W . . v. 42. A tr n n b r f th pr v t p r d l t r t f n nt l r l t n h p , t rn n n tt r f ntr t r t tl ff t n th n r h p r t l f f t r p r t nd t r p r r ht , r l b r p rf r d n d v l p n h t , h n b r f t f th h r t r b l z d th xt nt t h h n d p nd d n ntr t nd pr p rt rr n nt t pr v d fr r f r n r l t n h p . . r t, pr n t 88, t . 4 An nt rn l pr r t t t bl h d b th r nt r f n l t r r ht n K b rl Cl r C . v. tt n p r C ., W . 6 , 40 .W. 066 ( . " W l r, Ind tr l W t r U n rth C r l n 2 , 0 (Un v. f .C. In t t. f G v t, U. .C. W t r r p r . , S pt. 64 l hn n v. Ar r & C ., 6 . . 6 , 2 .W. ( 40 C v. ff n, 00 W . 4, .W. 4 ( 8 8 : f. Ann t., 2 A. . . 8 ( 40 . 06 U.S. G l l S rv , C r . . 4 6, E t t d U f W t r n th U.S. 60 t 26 ( 6 . Cf. n , A d f Exp r n Und r th I W t r r t S t — rt On , t r l r . 4 , 0 n. ( 6 . 8 W l r, pr n t , t 0, 44. 0 Id. t 2 , 44 4 . 6 OS O CO EGE I US IA A COMME CIA AW E IEW compared to the unused dependable water supply. Alternative water supplies may be available which are cheaper than purchase of riparian rights would be. The economic climate of the area may not be con- ducive to any general industrial development, so that purchase of riparian rights may appear to constitute superfluous insurance.'" In short, though research has not determined whether the uncertainties of riparianism have hindered development of capital-intensive projects, 20 the system has not substantially hampered industrial development along eastern rivers. 3. Locational Efficiency. a. Place-of-Use Restrictions. Another major criticism of riparian- ism is that it tends to foster locational inefficiencies. There are two basic place-of-use restrictions in most systems of riparianism: (1) water must be used only on property contiguous to the watercourse, and (2) water may not be used outside the watershed of the stream from which it is taken. Together, these restrictions operate to define the extent of riparian land. These restrictions create inefficiencies of use when the best opportunities for use exist on nonriparian land or outside the watershed. The extensive use of water for irrigation on nonriparian land in the West is one use which, for example, would be prevented by riparian law.' Two major doctrines have emerged defining just which land that abuts a stream is to be considered riparian land. The "source of title" test 20 states that water may be used only on land which has been
200 Id. t 44 4 . 20 S h r, pr n t 8, t 80 8 n. O C nn ll, I W t r St t t — h C n t t t n l t f l t n Ex t n U f W t r, 4 I . v. 4 , 8 ( 62 . C n d r, h v r, th p l l l t n v n rt n p bl t l t th p r t nd n r p r n r ht nd t p r t t r r rv r . S t t t t d n t pr . 202 It h b n r d th t l t n f r ff nt f t r n l b f nd n r p r n l nd. . Cr bb t, Ill n W t r ht nd Wh t Sh ld n Ab t It 28 (III. St. Ch b r f C . 8 . C ntr , l r, W t r U Und r C n tr n , n W t r r nd th 4 , 0 (Un v. f M h. S h l 8 . S . O t rh dt, pr n t 84, t 28 22. 2° S 6 A . r. W t r § 2 ( 4 . S v r " r f t tl " r tr t n n n t rn t t b th r lt f n r n n p l f th t rn rt t t ff n x r d r p r n r ht h p bl t r t r v l bl t ppr pr t r . S h r l pl d th v r h rt p r d t t r pr r pt v r ht ld v r r p d r d t n n th d nd f r t r nd r r p r n r ht . S . r, p r n ht r p rt , n W t r r nd th , 6 6 (Un v. f M h. S h l 8 . h p l ld n t b f l t l n th E t f r p r n r t n d th nl t r ll t n t . r th r n, th t rn " r f t tl " h ld b l d t d b l pr d nt f r d pt n " r f t tl " n th E t. h nl t rn t t t d f n r p r n l nd h v f ll d " n t f t tl ." S t d n t 20 nfr . h rt n En l nd nd th n lth ntr h v n t d f n d r p r n l nd t ll. Alth h th d f n t n f th xt nt f r p r n l nd n t t ll d r n th t rn 680 AUS A IA A AME ICA SYS EMS h ld n l tr t thr h t t h n f t d . h n th t n n n b tt n p rt n f th r n l tr t h h h v b n v r d f r v r l th r r p r n h r t r nl ntr r nt nt n n f t d. n t n h v r d tr t th th b tt n tr t ll n t r t bl h th r r p r n t t 2 04 h t t l nt f r p r n l nd nd r th r l nn t b nl r d b th p r h f nt b tr t . An th r r l f ll d n t t , th " n t f t tl " r l , pr v d th t n tr t nt t th b tt n tr t r r p r n f ll f th r h ld nd r n l n r h p r rdl f th t h n th v r tr t r r d. h n th t r p r n pr pr t r nl r th nt f h r p r n l nd b p r h n nt b tr t th n th t r h d?" h n r l r l th t t r n t b d v rt d t l nd t d th t r h d f th r n t n tr 0 f ll fr th r l th t t r d v rt d f r n xtr rd n r p rp t b r t rn d t th tr b v th n xt l r r p r n l nd? h d ff r n n th nt f l nd v l bl f r r p r n t r nd r th t r l n b n d r bl . A r nt t d n n rth t rn W n n nd t th t th " n t f t tl " t t ld n p 64 p r nt r l nd th t th " r f t tl " t t?" h b t nt l n r r lt fr th f t th t t f r t d h v d ff r nt b nd r th n th r n l f r nd th t n b tr t h v h n d h nd . Alth h r p r n n r ll r tr t f t r t r p r n
t t , d n tr t r f d v r n p r t t n f th t t h v r l d n th nt t r nd h v t bl h d " r f t tl " r tr t n . S C nt, W n n W t r v r n : A St d f Ad n tr t v C , W . . v. 2 , 2 . 20 S , . ., x v. n, 6 C l. 2 , 424 2 , 0 . 6 4, 4 ( 886 h r v. Irr t n t., C l. , 2 , 48 . 08, 0 ( 8 W t n nd C . v. Cl nt , 8 x. 8, 8 , 86 S.W. , ( 0 Y r l v. C t r, 4 W h. 28 , 28 8 , 2 0 . 804, 80 ( 28 . 2°8 S , . ., n v. C nn, Or . 0, , 64 . 8 , 8 8, ( 0 Sl v. M r h, h l . 4 , 4 ( . C. . 8 . 2 S , . ., rr ll v. C t f C n , 2 S.W.2d 24, 2 (Ar . 4 An h Un n W t r C . v. ll r, 0 C l. 2 , 0, 88 . 8, 80 ( 0 Str tt n v. Mt. r n S h l, 2 6 M . 8 , 86 8 , 0 .E. 8 , 88 0 ( M C rt r v. d n C nt W t r C ., 0 . . E . 6 , 08, 6 A. 48 , 4 4 ( 06 , ff d, 20 U.S. 4 ( 08 S l v. C t f M t h ll, 60 S. . 2, 4 , 24 .W. 0, ( 2 W t n nd C . v. Cl nt , 8 x. 8, 8 , 86 S.W. , ( 0 n f G rd n v ll v. nn, 2 . 42, 62, 06 S.E. 08, ( 2 M ll r v. r, 68 W h. , 20, 2 , 22 . 604 0 ( 2 . h r th r t n En l nd th t th t r h d l t t n n t r n z d. S rb r ( rd v. K t h n, 6 En . p. 2 ( . . 862 . 202 6 A . r. W t r § 44 ( 4 . 208 . O t rh dt, pr n t 84, t 266 . h W n n rt h n t d d d h h r l ll b f ll d. h bl S rv C n f th p n n th t th " r f t tl " t t ntr l . S n t 20 pr . 68 BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL LAW REVIEW
land, there is considerable authority for the proposition that in many instances water may be used by riparians on nonriparian land. These cases, admittedly the minority rule, state that water may be diverted to and used on nonriparian land provided that lower riparians are not damaged.2" Two states in this group allow use on noririparian land even though riparians are damaged if the use is reasonable.21) To the contrary is the majority rule that riparian rights may not be exercised on nonriparian land."' Many eastern states have not decided which rule to follow. Place-of-use restrictions have not yet raised any obvious problems in the East, where development of industry has been concentrated at streamside. The problem of locational restrictions probably will be more relevant for the East if irrigation becomes prevalent, or if severe water shortages should occur. b. Use of Water by Nonriparians. One advantage propounded for prior appropriation is that nonriparians can gain access to surface watercourses. Contrarily, it is suggested that nonriparians may only with difficulty do so under riparianism."2 This is not a universal rule. Riparian rights may be severed from the lands to which they are attached and conveyed separately.213 Severance may be accomplished by several methods. Riparian rights may be conveyed by grant, or reserved in the grantor in a grant to another of the land to which they
20 S , . ., Str tt n v. Mt. r n S h l, 2 6 M . 8 , 86 8 , 0 .E. 8 , 88 0 ( G ll v. Ch , 6 . . 6 , A. 8 ( 8 S th v. St n l nd O l & G C ., O l . 4 , 0 02, 2 .2d 002, 00 ( 46 x C . v. r tt, x. 6, 2 , 2 6 S.W. 2 , 2 6 ( 2 r v. S b , 82 t. 0 , 2, 4 A. 4, 6 ( 0 . Wh l th En l h t pr h b t n nr p r n lt th r, Att d . l M n C ll r , td., 26 Ch. 444, 4 8, r l f ll b r nt d nl f th r n bl d n t n f fl r t r l d . S rb r ( rd v. K t h n, 6 En . p. 2 ( . 862 . 2 0 G ll v. Ch , 6 . . 6 , A. 8 ( 8 r v. S l b , 82 t. 0 , 4 A. 4 ( 0 . 2 S , . ., An h Un n W t r C . v. ll r, 0 C l. 2 , 0, 88 . 8, 80 ( 0 W ll v. W d rth, C nn. 2 , 04 ( 884 ndr x v. b rt M rbl C ., 4 G . 8 , 4, 6 SE. 22 , 226 ( 2 M ttl r v. A lt C ., 6 M nt. 2, , 20 . 02, 0 ( 2 Cr f rd C . v. th , 6 b. 2 , , W. 8 , 0 ( 0 M C rt r v. d n C nt W t r C ., 0 . . E . 6 , 08 0, 6 A. 48 , 4 4 ( 0 , ff d, 20 U.S. 4 ( 08 S r nt n G & W t r C . v. l r . . & W. . ., 240 . 604, 6 0, 88 A. 24, 2 ( n f G rd n v ll v. nn, 2 . 42, 8 60, 06 S.E. 08, 4 ( 2 b rt v. M rt n, 2 W. . 2, , E. , ( . 2 2 r l t th t bt n n r ht t t r n n nr p r n l nd b v r d ff lt, lth h n t nt r l pr r b d. r l , M d l C d , pr n t 8, t 0 04. 2 W n h ll v. Cl r , 68 M h. 64, , W. 0 , ( 888 x C . v. r tt, x. 6, 2 , 2 6 SW. 2 , 2 6 ( 2 t v. n f r , . 2 8, 224, 8 S.E.2d 6 , ( 40 . 682 AUSTRALIAN AND AMERICAN SYSTEMS
r tt h d." h b l d" r l n d." h r ht f th r nt d r v t v h r ht r d b th r ht th r nt r h d." h t n f p rt l r n rn h r h th r n nr p r n nf r h r d r ht n t th rd p rt n n n nt n r p r n f h r r p r n. S v r l rt r f t nf r th r ht f n nr p r n n t n n n nt n r p r n , 2 8 lth h th r r f rt h h d ." A n nr p r n r r p r n r ht n t th rd p rt r p r n b r nt, l , 22 pr r p t n, nd n t n 22 nd p l l l t n. Ad tt dl th r ht f n nr p r n t r r p r n r ht n th t b pl d n t th h ld n th t v n r p r n n t t r n n nr p r n l nd. C rt nl th b l t f n nr p r n t n t t r b r nt fr r ntr t th r p r n br d n th p f f l n f t r. At th t , h v r, t th xt nt rt ll n f r th r ht r d b n nr p r n n t th r r p r n , t th t d r ll th rt nt f th l tt r t r r ht b l n d. . M th d t p t n l tr t n . ht t t r b r d nd r th n l f pr r pt n. th d
2 4 M ll r & x In . v. .G. C ., C l. 68 , 8 . 6 ( t v Mf . C . v. t n W n C ., Ill. 2 0, 2 ( 8 8 M nd v ll v. C t , M h. 6 ( 862 r v. S l b 82 t. 0 , , 4 A. 4, 6 ( 0 t v. n f r , . 2 8, 224 2 , 8 S.E.2d 6 , 2 (4 40 . 2 S S th v. St n l nd O l & G C ., O l . 4 , 0 , 2 .2d 002, 00 ( 46 x C . v. r tt, x. 6, 2 , 2 6 S.W. 2 , 2 6 ( 2 r r n v. r r, 2 t. 20 , 2 0, 2 4 A.2d 8 , 88 ( 6 . 2 0 S G dr h v. rb n , 4 M . ( 2 All n 4 ( 8 r v. K rn, 4 S. & . 26 ( . 826 . 2 S Spr n ll W t r C . v. C nt f Al d , 88 C l. App. , 64, 26 . 8, 2 ( 2 S th v. St n l nd O l & G C ., O l . 4 , 06, 2 .2d 002, 00 ( 46 r v. S l b , 82 t. 0 , , 4 A. 4, 6 . ( 0 . 2 8 S lbr n v. l r S t h C n l C ., C l. 426, 4 2, . , 8 ( 888 St p rt W t r r C . v. tt r, En . p. 4 (Ex. 864 . 2 0 S , . ., G ll v. Ch , 6 . . 6 , A. 8 ( 8 r v. S l b , 82 t. 0 , 2, 4 A. 4, 6 ( 0 . 220 Spr n ll W t r C . v. C nt f Al d , 88 C l. App. , 26 . 8 ( 2 G ll v. Ch , 6 . . 6 , A. 8 ( 8 r v. S l b , 6 t. 240, 6 A. 06 ( 04 . h pp rt n nt t r r ht b nv d b r nt lt n l th th v r d b tr t nd nf r d n t n n n nt n r p r n . M ll r & x In . v. .G. C ., C l. 68 , 8 . 6 ( r z v. lr d C n, 8 C l. 6 0, 20 . 2 ( 2 (p rt t n St. Anth n ll W t r r C . v. M nn p l , 4 M nn. 2 0, 4 .W. 6 ( 88 . 22 S th v. St n l nd O l & G C ., O l . 4 , 2 .2d 002 ( 46 . 222 S b t v. n nd, 0 C l. 24, 2 . II ( 22 K nn d v. l W t r S ppl C ., M h. 4 4, .W. 24 ( M ll v. W d n t n r, 88 W h. 8, . 42 ( l r v. r tt, . . 0 Ex. ( 8 . 228 t r v. nt n n W t r C ., 4 . 6 , , 6 S.E. 2 , ( . 224 S , . ., S nd n W t r r C . v. W lt & r C n l C ., . . . (n . ( . . 8 . 68 ' BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL LAW REVIEW trine either a riparian or a nonriparian may obtain a right to use water on nonriparian land which is otherwise prohibited. A prescriptive right may be acquired only when the use which generates it is "adverse" to the rights of downstream riparians:' . ., the use must be open, notorious, hostile and under claim of right. Adversity has come to have two distinct meanings which are adhered to in different states. One meaning defines adversity as the bare invasion of a legal right. 226 The other meaning requires that the invasion of right cause injury suffi- cient to justify an award of damages. Hence, adversity will not exist in the absence of material damage or sensible diminution as a measure of presumed damage."' Under such a rule it may be very difficult to acquire a prescriptive right to a nonriparian use. Under a rule followed in a few states," the need to acquire a prescriptive right for a nonriparian use does not exist unless the use or amount of water taken is unreasonable. Such a use may be adjudged reasonable, however, even if it causes some damage or diminution. Whether courts would apply the same test of reasonableness to ripari- an and nonriparian uses alike cannot be predicted. Municipalities have power to acquire water rights by eminent domain.' Municipal water utilities thus have power to condemn the rights of nonmunicipal riparians and to divert water to all lands with- in the municipalities, including nonriparian land. They may sell water to nonriparians for all uses. Industries may purchase water from a municipal water utility to avoid the locational restrictions of riparian- ism. 2 ° These industrial users purchased municipal water equalling about five percent of the total water withdrawn for industrial purposes in the East in 1960. 2" The types of industries which purchase water from municipal water supplies are not indicated in the statistics. Pre-
22 S r r v v. C , 08 C l. 2, , 4 . 8, 20 ( 8 Cl r v. All n, K n. 206, 24 46, 80 . , 8 ( 0 K nn d v. l W t r S ppl C ., M h. 4 4, 4 , .W. 24 ( r v. S l b , 6 t. 240, 24 , 6 A. 06 ( 04 C lt r v. nt r, 2 . 8, 6 ( 826 M n v. Y r d, 8 W h. 2 6, 280 82, 08 . 608, 60 0 ( 0 . 226 S , . ., In r h v. t h n n, 2 C nn. 84, 2 ( 8 8 l v r Mf . C . v. p n tt Mf . C ., M . ( 6 . 24 , 24 ( 8 4 . 227 K nn d v. l W t r S ppl C ., M h. 4 4, 4 , .W. 24 ( . S r nt l l t n r r n t l d b f r t n b br ht f r nt rf r n th th n t r l nd t n f th t r r . .Y. C n rv. § 42 j (M K nn 6 . 228 S t d n t 20 pr . 22 S n t 2 nfr f r h ld n th t n p l t n t d v rt t r t n nr p r n l nd th t p r h n t r r ht , nd t th ntr r h ld n th t n p l d v r n t ll l nd th n n p l t r r n bl x r f t r p r n r ht. 230 Ind tr l r p rt n f ll t r thdr n b p bl n n th E t: n 60. S U.S. G l l S rv , pr n t 6, t 4. 237 S d. t 4, 20. 684 AUS A IA A AME ICA SYS EMS
bl th r th ll r v l r f r h lf ppl ll n t h v n f nt v n . Gr nd t r r d l v l bl n n p rt f th E t, nd ll b th h p t r f ppl f r n n nr p r n r . Gr nd t r n t t t b t f r p r nt f t t l t r thdr n f r nd tr l p rp n th E t n 60. 2 th n p l t r ppl nd r nd t r n t t t pr t l lt rn t v t rf t r r f ppl , nd b t l z d t v d l t n l r tr t n l t n d v r n f t r f r tr nd r r p r n . E h h r tr t n f t n h h l t th r f ln . S t t r tr t th f r nd t r t th tr t fr h h th t r thdr n 2 M n p l t r n t b v l bl t d th l t f th n p l t . d. Comment on Locational Restrictions. r l d d b v —th t h h ld p r t r p r n t n nr p r n , nd th " n t f t tl " d tr n — n f t l b r l r th r th n n v r l f l n t th r p r n r ht. Op n n th t ld ll n nr p r n t r r p r n r ht l fr ntl n nt r d, n h v n f rth r th n th t x pl b v fr th l nt f th tr d t n l r p r n r ht. All h r pr d t d n th rt n pt n f th r n bl n f th ppl d f r. A th r l t n h p b t n th pr p t v r nd th r f ppl b r r t , rt t nd t r t ll n f . n n h tt r , rd n l , b r l f n t n f "r n bl n " n b tr t n pt. pr bl r v d nt h r : nl r nt f r p r n l nd nd n nt n r n t r nd f t r n n nr p r n l nd. h n rn f th rt pr b bl r l r n b th t t n . In " n t f t tl " t t , r p r n l nd b n r d b "t n ," th t , b p r h n n nr p r n l nd nt t r p r n l nd. A n nr p r n b r p r n b p r h n nt r p r n tr t. h r n th r t l l t t h
2 2 S d. 22 h "r n bl " r " rr l t v r ht " d tr n r tr t f r nd t r t v rl n l nd. S , . ., n v. Oz Ar l ltr C ., 228 Ar . 6, 06 S.W.2d ( K h. v. W , 8 S . 2d 4 , 48 ( l . 6 S h n v. C t f Ann Arb r, 6 M h. , 6 .W. 0 ( M r v. C t f E t Or n , . . . 62 , 4 A. ( 0 v. C t f K n t n, 88 .C. I, 6, 2 S.E. 482, 48 ( 24 thr ff v. S n n Spr n W t r C ., . 2 , 2 4, 4 A.2d 8 , 0 ( 40 hv ll , C. & St. . . v. rt, nn. App. 446, 8 S.W.2d 88 ( 6 . h ntr r " b l t n r h p" r l ll d v r n fr ll t n n v rl n l nd. S , . ., rtf rd n C rp. v. Cr ll W t r C ., 26 C nn. 4, 8, 0 A.2d 8 , 88 ( 40 n v. M l & St. . . ., I 8 ( 8 2 n n r v. M G nn , . 0, 6, 08 S.E. 6 , 6 ( 2 M nn v. C t f nd In , 2 W . 4 , 4 , .W.2d 0 , 0 ( 6 . 2 4 S t d n t 2 pr . 68 OS O CO EGE I US IA A COMME CIA AW E IEW pr n pr t t l t d nl b th nt f l nd v l bl f r p r h h t n pr b rr d t n tt r h ll th r n l r p r n tr t b , n th r f th r ht t d v rt t r n t th l n th f th r p r n h r l n r th z f th r n l r p r n tr t. A r n d n h v d d th t n h th r th r r ht t b l t t t n nd r th " n t f t tl " d tr n ." rh p th pr bl r h p th t l th n r l. h r l f "r n bl " ld t ll ppl t pr t t l r r p r n fr x v d v r n . W t r r n n ft r t t ll b r t rn d t th tr b f r t l v th pr p rt f th d v rt r. h r l ht t v h pr t t n nd r " n t f t tl " th d nd r " r f t tl ." If th d n t, th r b h lp n r t h h h r l d th t r lr d n t d v rt t r l n t 20 f t r ht f fr ll tr t t r t n t t t t n n h lf l , v n th h th t t n t r p r n f r l nd t tl n rn d. h t n r n d t b t f r fr th tr t b r p r n f r d v r n p rp , nd th t r t b d n l t v p t 40 l ?" h "r p r n f r d v r n p rp " pr n pl ht b ppl d t "t n " t pr v nt t d t nt l nd fr b n r p r n. h pr bl f f t r b r p r n n n n nt l nd b l b r t d l n l r l n . h ld b p r tt d rd n t t nd rd f "r n bl n ." Enl r nt f t r b tr n f r t n nr p r n pr nt n th r pr bl . A n nr p r n r ht t t r d r v t v f h r nt r r p r n r ht t th t r. A rd n l , th n nr p r n r n bl f th r p r n ld b . t r n bl n b d n th ntr n nd p r t v v l t th r p r n, th r l t n h p f h d nd t th d nd f th r r p r n , th n t r f th tr , nd tt r f p bl p l . If t h ld b h ld th t tr t z n t n l nt f "r n bl n ," th n n nr p r n ll b ll d t t r th t th r nt r r p r n ph ll ld n t h v d. r x pl , r p r n ll t r t n nr p r n p p r ll v n f th r p r n l nd b t ll t nt n p p r ll. If d v rt n t r t p p r ll th r r n bl , th n nr p r n h th n bt n d r ht t d v rt r t r th n th r nt r r p r n p bl f n . h r lt nd r bl , nd th r p r n nd n nr p r n tr t z h ld b n d r d n l nt f "r n bl n " n th t t n.
2 h th t th t r h d l t t n d n t ppl . t W rb r r . C ff , 80 b. 4 , 8, 4 .W.2d 8, 44 4 ( 66 . 2 0 M C rtn v. nd nd rr & .S. ., [ 04] AC. 0 (Ir. . 686 AUSTRALIAN AND AMERICAN SYSTEMS
In th n t n f f t r b n nr p r n nd "t n ," th nt f l nd h r t r n b d nl r d. Y t b n nr p r n d t n t pr bl n th t n nd f n bl nd nd f n t l xp nd bl l f l nd n r r thr h t r ht t t r h h ld n t b v l bl th r ?" h r f r , th rt h v , f r th t p rt, r tr t d t r p r n t pr v nt th nd f n t l xp nd bl l f p t nt l n nr p r n r fr n n t th tr . h b t r l n r p r n t t pr b bl ( d pt n f th " n t f t tl " t t, r fl x bl th n " r f t tl ," (b ll n r p r n t t r n n nr p r n l nd rd n t t nd rd f r n bl n , nd ( ll n n nr p r n t p r h t r f r t th xt nt th t th r nt r r p r n ph ll ld h v d t r f r th p rp n h n l nd. 2 8 4. r t t n f th bl Int r t.— h n l r n z rt n t r r ht f th p bl th t r p r nt t r p r n r ht ." r x pl , r t th Cr n, th t t h v th r t t pr t t r v r nd tr f r n v t n. h p bl r ht p r r t n pr v t r ht t t r n tr t h h th p bl r ht tt h. h r p r n d tr n ll d pt d t th r n t n, r l t n nd d v l p nt f p bl f th t r f n v bl tr . bl r r n z d b th r ft n n t r p r n r ht f p r nt rv t d r nt v r n v bl tr n f v r f th p bl nd t tr t , th t t 24 S n th t t rv t d p r nt, n p n t n p d f r pr v t t r
2 r b bl f r th r n l n t rt h v n t p r tt d n p l t t d v rt t r t th r n nr p r n r d nt th t p r h n t r r ht fr r p r n h ld b ff t d b th r d v r n . E. ., W ll v. C t f W nf ld, 6 K n. , 8 , 4 . 6 , 6 4 ( Sp r •Mf . C . v. n f t n, 60 . . E . , 4 A. 6 ( 00 S th v. C t f r l n, 60 .Y. , 4 .E. 8 ( 8 rn ll v. C t f nd r n, 220 .C. , 6 S.E.2d 44 ( 4 . C ntr , C t f C nt n v. Sh , 66 Oh St. , 6 .E. 600 ( 02 rr W t r C . v. C rn , 6 t. 626, 2 A. 60 ( 8 . 2 8 In Y r t t t r r v n h b n r nd d t ll r p r n t t r n h n nr p r n l nd n l f n h r p r n l nd f l r r p r n ld b d d n r th n f th t r h d b n d n th d v rt r r p r n l nd. p r r St t C n n W t r r l nn n , St t f Y r , r r p rt: r l f r W t r r M n nt n Y r St t 2 ( . . 4 , 6 . 239 h t n n t n rn d th th t n f b d n r h p b th t t . 2 0 S C n lth v. Al r, 6 M . ( 8 . 2 h f d r l n v t n rv t d l p r nt t pr v t r ht n n v bl t r f th Un t d St t . Un t d St t v. K n C t f In . C ., U.S. , 808 ( 0 . It pO r th f d r l v rn nt t pr t t, r l t , nd pr v nt f r n v t n. h p r t pr t rt n n ll r f n t n h b n r ft d n t th pr r f n t n, M rr l , d r l St t ht nd l t n § 0 .2 (A , n 2 W t r nd W t r ht ( . Cl r d. 6 . p n t n n d b p d f r pr v t r ht h h r nj r d r d tr d b h f d r l t v t . Cf. d. § 0 .2 ( . 68 OS O CO EGE I US IA A COMME CIA AW E IEW r ht nj r d r d tr d b th x r f th rv t d . h r ht f th t t t r l t n v bl tr f r th b n f t f th p bl h b n t r d p bl tr t. 242 Enh n nt f p bl r ht t t r , f r , d t th t f r d n th rt nt f pr v t r ht . C. Prior Appropriation . Description.—For r t n r nd ll d f n d t r r ht, n th t ttr t v t t r r , th d tr n f pr r ppr pr t n h b n xt ll d. r r ppr pr t n b rn nd d v l p d n th r d t rn Un t d St t n r p n t n d f r rt nt n bt n n t r f r n n nd rr t n p rp . h d tr n pr v d th t n t f h rt nd v d l ppr pr t n r t ff nt r l , th rl t ppr pr t n b n th l t t b t ff. C n v r l , n t f b nd n nd v d l ppr pr t n r r t r d t n t t , th n r ppr pr t n f r t. h p r t n nl xpr d b th x "f r t n t , f r t n r ht." An ppr pr t n d f r d f n t v l p r t n t f r t t d t p rt l r pl . h pl f b n n nr p r n l nd. Alth h th d t f pr r t n r ll t bl h d b th d t f p bl n t r b th d t f ppl t n f r p r t, th ppr pr t n ff t v l r d r l b ppl n th t r t th t t d . h t b b n f l n , d th n r n bl t r lt f d l nt ff rt. h r ht nt n l n th t r nt n t b ppl d t th b n f l . It l t b b nd n nt r b t t t r f rf t r ft r p r d f n n . In t t th n r h p f th r ht, n t r f , pl f , r pl f d v r n b tr n f rr d r ld th t l f pr r t .24 h pr r ppr pr t n r ht t d v d n d b d nt ll r f rr d t p r t 2 44 It ll d b t t
242 h p bl tr t d t r l t b tr t n t n v t n, x n v. bl S rv. C n, 2 W . 2d 608, 46 .W.2d ( 66 , th n tr t n f d , M n h v. bl S rv. C n, 26 W . 4 2, .W.2d 4, .W.2d 40 ( 2 , th p r t n f d , W n n r & ht C . v. bl S rv. C n, W . 2d 6 , 8 .W.2d 0 ( 8 , th r pr rv t n ft r th r n h t r n t d, M nn. St t. Ann. §§ 0 .42, 0. ( 64 , . . St t. Ann. § 8:4 ( 66 , W . St t. Ann. § . 8 ( 6 , n v l , M n h v. bl S rv. C n, pr , S n d n r rv t n C nf. v. C, 4 .2d 608 (2d C r. 6 , Ud ll v. C, 8 U.S. 428 ( 6 , n r l n t v t , r t v. W h n t n C nt . ., 6 M . 6, A. 806 ( 0 , St t v. S n p C ., 0 . . 4 8, 0 A. 08 ( 00 , St. p r C . v. W t r r d., 2 . . 64, 26 A.2d 8 2 ( 42 , Ill n St l C . v. l t, 0 W . 4 8, 84 .W. 8 , 8 .W. 402 ( 0 , r r r t n l pp rt n t , St t v. bl S rv. C n, 2 W . 2, 8 .W.2d ( 6 . 243 S n t 8 pr . 244 A t ll p r t d t n bl n ppl nt t b n n tr t n h d v r n r . A t r r ht l n d h n t r t ll ppl d t b n 688 AUSTRALIAN AND AMERICAN SYSTEMS
d n tr t v n , ft r n ppl t n r dj d t n pr d r h h v r fr t t t t t ." h t t d n t r n n ft n v n p r t d n ppl t n f r p r t r d f t n f p r t t pr t t n r ppr pr t r r th p bl nt r t." r ll t n t r d r n t f h rt , r f r h n b t n lt n ppl t n f r p r t , v r l t t h v n t d t t t v n rt n pr f rr d t t ." S t t l v th pr f rr d r nd n t n p r." r r ppr pr t n pl t d n t rn t t , n t bl C l f rn , b th x t n f r p r n r ht h h v rn th ll t n f n f nt p rt n f th r t r . 2. Adv nt r p nd d.— r p n nt f pr r ppr pr t n r th t t ff r dv nt v r r p r n . It t ttr t v h r t r t r t f r ht. An ppr pr t n p r t r t p r p t l r ht t d f n d v l f t r fr p rt l r r t b d n d n t d l nd bj t t d nt f d n r r ht f th n t r . h p r tt n x tl h t h t r r ht . h v r d f n d n t r f th r ht t tr n f r bl nd bj t t l . Wh l th tr t r f r ht pp r t b v r r d nd nfl x bl , p r n h n t ntr d n n t t n h r ll v l bl t r h b n ppr pr t d p r h th r ht th n d. ht t r n t bj t t th h z rd f n d n r r ht b n x r d t l t r t , b r ht r l t b n n . . S r t f th r r Appr pr t n ht.— h pr r ttr b t f ppr pr t n r t f r ht. Of r , th r ht f n r ppr pr t r n h hl v r bl r v r r h r r th n th f j n r ppr pr t r . t th l tt r n b r th t n nv t nt b th t pr v r l t n f fl b n tr t n f t r r rv r r nt t n f ppl b tr n b n d v r n n l ll b pr t t d. S h n r d fl , th h bj t t t p r r t pp n t f r t , ll n t b bj t t b th r , h pp n nd r r p r n ." h t p f r t f l . th d nt v d n n th t r r ht ft n r f rr d t p r t, th t t r n l h b n d n th rt l . 245 In W n , th St t En n r, pp nt d b th r t f W . C n t. rt. 8, § , h th r t t ppr v r r j t ppl t n , W . St t. Ann. § 4 20 ( , h h t b d b ll h h t th t t t r. Id. § 4 20 . S l r ppl t n t b d n Ar z n b n p r n " nt nd n t r th r ht t th b n f l f t r." Ar z. v. St t. Ann. § 45 142 ( 6 . Appl t n d t th t t l nd d p rt nt. Id. § 4 0 .2. 246 W . St t. Ann. § 4 20 ( Ar z. v. St t. Ann. § 4 4 A (1956) . 24 S t t t t d n t 2 nfr . 248 S t t t t d n t 2 6 nfr . 24 S n r ll r l , M d l C d , pr n t 8. 2 0 S d. t 08 0 . 689 BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL LAW REVIEW
h ld r t n t ph r n r n t p t l nt n v t r r r d v l p nt. h r t h v d nd r pr r ppr pr t n t n th W t h b n r d d b t pr bl : v r ppr pr t n, th n t nt n d r ht , nd r d l r p r n r ht . h f r t n b v d d n n t f p l t ll ll th n t v d t. h nd r r n t t t n l t n , p ll n th E t th t h v l t l z d tr p n n pl x r p r n r ht r l t n h p . It ft n h pp n th t r t r h b n l d f r ppr pr t n th n x t n th tr .2 n r ppr pr t r , n th , ll ft n f nd th lv n t r l d, b t n t d, b n r ppr pr t r . h j n r ppr pr t r r n r ll p r tt d t th h n th n r h v n n d f th ppr pr t d t r. t h n n r ppr pr t r d r t t r nd r l f r ht th t h n t l p d, th j n r r ht b d f n t n f r l d. h t t n d v l p d b f r th d f d n tr t v ntr l f ppr pr t n l thr h n f p r t . It h ld b r f r n n d n t r n n t rn ppr pr t n t t v d v r ppr pr t n b ppr pr t r b t n f "p p r r ht " n b pr v nt d. A r pr bl n t rn t t , nd n b nd t b tr bl n th E t, r d l r p r n r ht . If r p r n r ht d d v t d ( th r n th th r th t th r ht b n x r d t th t pr r ppr pr t n d pt d, r n th th r th t th l nd t h h th r pp rt n nt h d b n n v d t pr v t n r b f r th b l t t r r p r n r ht h d b n t ff , t ll, f r , b tr t d pr p rt r ht, n th t n t b t n th t p n t n. It ll th n h v pr r t v r ll ppr pr t v r ht . h h b n pr bl h r th n t h d d th th r.2" Y t, r lt r l rr t n h d v l p d n t f th E t nl n th 0 . n , t d h v l d v l p d nd tr l nd
2 h v r r pr bl n r n th W t ttl d rl . S h r, W t rn Exp r n nd E t rn Appr pr t n r p l , n f W t r All t n , 8 ( . b r & S. r n d. 8 . S f th rl l f r ppr pr t n r r d l . S , . . b t v. n nd, 0 C l. 24, 2 . ( 22 . 2 2 6 A . r. W t r § 0 ( 4 . 2 On f th p rp f tr dj d t n b t t n t l n t h n d ppr pr t n b f rf t r t ppr pr t n p t t b n f l I C r SCUM. 2 4 S W. t h n , S l t d r bl n th f W t r n th W t 0 4 ( 42 . 2 W. Ch p n, r n t n r p r n tr n , n r d n f th W t r r C ll 46, 4 (In t t. r h nd & W t r r , . St. Un v. 6 Ch p n, r r Appr pr t n n M pp —A St t t r An l , M . . . , 6 ( 6 . 6 0 AUSTRALIAN AND AMERICAN SYSTEMS
tr p l t n r , th pr bl f r d l r p r n r ht n t t h v r h d r pr p rt n n n t n r p r n r ht ll h v v t d th r . t f n r ht r v t d b f r pr r ppr pr t n d pt d, th r ll b t l ttl n ll t d t r t th ppr pr t v t rth h l . h ld t th n t ll b n d d t ttl d p t b t n nd ll t t r t r n th v t j r t f . Wh r t r lr d b n b t n t ll r f ll t l z d, n n nd tr l r f th E t, b t t t n f pr r ppr pr t n f r th ld r t b p ntl . r r ppr pr t n pr b bl n n v n f ll r p r n r ht r b l h d nd th d n tr t r t rt d fr h. On f t p l ld b f ll d t t bl h t p r l pr r t . On r n t n f pr r t n th b f h t r l — h p l t , n l ld b thr nd n h lf nt r . h th r p l ld b t ll ll r t n l nd t r nt t p r l pr r t n th b f t f ppl t n. d r t n n O l h l nd r h, h pr d r ld b nj t b th pr r t f l nd, th r f r , t r t ld b b d n th d nt f h f t th r r h tt rn ld r n t th r tr t n ff . h h f r n h pr r ppr pr t n n t t d t t t rn t t n th t th d tr n d n d t pr t r p d d v l p nt f l r l n d r r . 2 h d v l p nt h lr d rr d n th E t. 4. Eff n f W t r U .— r r ppr pr t n h t f t r h h pr t ff n f f t r. On th b n f pl f l t t n. S n t r b d n h r , d v rt r ll b r l l t t h r v r n th r n l nd t n b d b t. h th r th r l f r n bl b n f l . Appr pr t r bt n r ht nl t t r h h th t ll p t t ." h t b n h h b n f l, th t , f r f h h h n dv nt . W t r r ht h h r n t x r d b n f ll ll b l t b n n nd r b nd n nt r f r f t r n pt . In th d n tr t n f t rn pr r ppr pr t n t t t rt n pr bl r l t d t ff n f h v r n nd t b rd d n t f th t n t t t d n th E t. n tr t t nd d t b d v l p d f r t b th r r t d v l p. Unf rt n t l t r nt d n tr t th t t t f n r
2 8 Cf. r l , l , pr n t 8, t . 2 r n xt n v d n f b n f l , W. t h n , pr n t 2 4, t 4 6. 2 8 Ab nd n nt nd f rf t r r d t n h d n In r W t r f M n Spr n , 60 v. 280, 28 88, 08 .2d , ( 40 . 6 BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL LAW REVIEW r ht b bj t t r tr n n l 26 — r lt f h h v p r t n r t nd tr b d p d f p r l ?" r d th xt nt f th pr bl th t h ld ll f r h n n l t n f . p th th r xtr t t n , th d n t r n n h ld p rh p b v n p r t ppl n nt v r r v r t h h ft n l t n. Ov r ppr pr t n n b n v n r r pr bl . W t r h h ppr pr t d b nd th n d f th r , th n dr n nd ppl d r l t v d f rf t r , t r t d. U f h t r n r l l t th v r ll d r f ff n f f t r. In th W t th t t n p ll r n th rl d f ppr pr t n, nd h pl d th pr r ppr pr t n t th r v r n ." It h b n t d th t n ppr pr t r v n t d r r th r n r n th r t t f th nt f t r th n d. 202 E t rn t h h b t bl h d h ld n rp r t ff nt p rv n v r ppr pr t n t v d v r ppr pr t n. . Flexibility of Prior Appropriation to Accommodate New Uses. . Locational Rigidities. r r ppr pr t n r f n p n r n n . h n th r n l ppr pr t n , h h r r d n p rp t t , r th t r . h r n t b fl x bl n h f r d pt t n t th d rn n r n d f r t r. h r d r b th r d t h h n r t th t . An ppr pr t n r ht ll t r t b ppl d t th p rp f r v r, b t t p r r r p r n nt h n n th nd t n f t r nd ppl n r n n th t th p rp f r h h t r r n ll ppr pr t d r n t n th r p rt nt p rp f r h h t r n d d t l t r t . Unf rt n t l , th n d f r ppl n t r t h n d p rp ll r ft r f ll v r ll h b n h v d. h nt r d p nd n n r lr d t bl h d r l l t
2 0 S , . ., St t x r l. C r v. C hr n , 8 b. 6 , 2 2 .W. 2 4 ( 40 ( n r d n tr h ld t b r n bl v n th h h nn l tr n n l t n d . 2°0 W ll h nt d: l b v p r t n nd p r l t n r r t n r d r n , t n th nt r t f n th t th t r h ld b d v rt d f r rr t n f r p tr t n b pr p rl d f r th t p rp t, n ppr pr t r b l ll b nd n t t d v rt th t r f h n r, p rh p n l d n tr , n bl t bt n h f ll nt, t th l t dr p. W ll , Irr t n n C l r d (pt . & 2 , 0 Mt. . v. 8 , 8, 0 ( (f tn t tt d . 2° S n t 2 2 pr nd n t 2 4 nfr . 262 S W ll , pr n t 260. 6 2 AUSTRALIAN AND AMERICAN SYSTEMS
bl h n t d ff r nt p rp f x t n nd t n f ppl r t b tr tl pr rv d f r th b n f t f th t bl h d r 2 6 A ll p rt n f r v r ll, f r , b ff t d r b d v r n f v n z th n l r p rt n f th r v r. h ph l tt n f r v r th f x th nt rr l t n h p b t n d v r n t v r p nt nd th fl r n n b l th p nt . On f ll t l z d r v r, r ht f th r ld b ff t d dv r l b v n r l t v l ll h n n v l r l t n f d v r n b n d v rt r p tr . A nt rr l t n h p b t n r ht n r v r r r pl x, th r f r dj t nt b l b t n n r r ht ld b nv lv d 264 Und r pr r ppr pr t n n t rn t t , n h n f th l t n f d v r n r pl f r r n n ppr pr t n:20 S h r l r t r d t b n ppr pr t r l l t v p h n r r ht t ff t h n n l t n f d v r n r pl f . S v r l t t h v ht t ll v t th pr bl b ll n ppr v l f h h n th t l f pr r t , l n x t n r ht r n t dv r l ff t d. 266 h d ff lt n r n ppr v l p ll t h n th ppl nt nt pl t h n fr n n n pt v t n pt v , 26
26 h r, pr n t 2 , t 02. 264 An xtr x pl f h t th f x t f th fl nt rr l t n h p n pr d t d b r l . A r nd t r d v r n f 00,000 r f t n th pp r p rt n f r n h n Cr r n C l r d r d fl t th l r nd b nl ,000 r f t. In v r Cr , t n f r nd t r d v r n f 20,000 r f t nl r tr fl b nl 000 r f t. r l , M d l C d , pr n t 8, t n.6 , t n nv r t, v. 8, 6, nd p S t. t , l. 2. S l rl , h h h nn l tr n n l n t rn tr r r l r fl t th h d t r t pr d ll fl f r d n tr t pr t t n r ppr pr t v r ht . ntr t, th fl n n t rn tr b l d v r n ll b r pl n h d th n r l t v l h rt d t n fr tr b t r nd r nd t r r h r . 26 S tt r f ld v. tn , 45 Ar z. 6, , 4 .2d 228, 2 4 ( b. v. St t. § 46 22 ( 60 W . St t. Ann. § 4 2 ( . S v r l t t t v rt ll fr z th ppr pr t n r ht t th l nd nl , b f n t r l b nd th ntr l f th d v rt r, t pr t bl t th t r n th n d l nd b n f ll r n ll . S v. v. St t. § .040 ( 6 O l . St t. Ann. t t. 82, § 4 ( 2 S. . C d § 6 .0 28 (S pp. 60 . M t t rn t t , h v r, ll tr n f r th t l f pr r t f th r r ht r n t ff t d. C l r d p ll l b r l n th r p t. S , . ., l r v. nt n M t. Irr t n C ., C l . 246, 24 , 26 .2d 02, 0 ( . h pr bl d d n W. t h n , pr n t 2 4, t 8 84. 266 S Ar z. v. St t. Ann. § 4 2 (S pp. 6 C l f. W t r C d §§ 00 06 (W t 6 , nd d, §§ 0 0 . (W t S pp. 6 C l . v. St t. Ann. § 48 22 ( 6 Id h C d Ann. § 42 222 ( 48 K n. St t. Ann. § 82 08(b ( 64 .M. St t. Ann. § 2 ( 68 . . C nt. C d § 6 04 (S pp. 6 Or . v. St t. § 40. 0 ( 6 Ut h C d Ann. § (S pp. 6 W h. v. C d Ann. § 0.0 . 80 ( 62 . S . r hl f r, . v n & . M ll n, W t r S ppl : E n , hn l , nd l 2 42 ( 60 . 26 S W. t h n , pr n t 2 4, t 82 84 r l , l , pr n t 8, 6 OS O CO EGE I US IA A COMME CIA AW E IEW thereby diminishing the rate of return flow to the stream and devalu- ating the rights of downstream junior appropriators. Similar difficulties may occur when a significant change in point of diversion is contem- plated. The seriousness of this problem throughout the West is only now under investigation."' Recent studies have found that locational rigidities presented great difficulties in effecting water transfers. In Colorado, the City of Denver discovered it had to construct a dam in, and a pipeline from, a distant unpopulated mountain area rather than to purchase water rights nearby because of the difficulties inher- ent in securing transfers of water rights by the judicial procedure followed in that state.'" In California, locational rigidities were found to inhibit water transfers greatly.2" In Wyoming, a statute forbidding the severance of a water right from the land on which it is used has severely restricted transfers of water between agricultural users. However, a number of exceptions has arisen in favor of certain pre- fered users.27' Perhaps it is too soon to generalize from these studies, since the law in each prior appropriation state is different. Proponents of prior appropriation suggest that changes of use can be effected by making the right freely transferable,272 so that the new user can purchase the rights he needs from older users who are willing to sell. Yet even if the right is made legally transferable, the transfer rigidity problem just discussed will continue to keep it eco- nomically nontransferable. How this problem would be overcome is not explained. Presumably both the transferred right and all affected rights would have to be purchased provided, of course, that they are available for sale."'
t 2. S , . ., th r n v. nn , 4 M nt. 0, . 8 ( r ht n v. Str l n, 46 Or . 2 , 26 0, 28 .2d 2 , 222 ( . 268 A n b r f pr l n r nd xpl r t r r p rt n r r h rr ntl nd r r l t d n W t r r nd E n v l p nt f th W t r , C n f r n r d n f C tt n E n f W t r r v l p nt f W t rn A r lt r l E n r h C n l. 26 S t n & rt n, Alt rn t v In t t t n f r W t r r n f r : h Exp r n n C l r d nd M x , nd E n. ( 6 . 2 0 G ffn , n Inh r nt n W t rn W t r : A C l f rn C St d , n E n An l f M lt pl U ( r d n f W t rn A r lt r l E n r h C n l, n, Ar z., n. 2 24, 6 , W t r nd n r nd E n v l p nt f th W t r , p rt . . 2 r l & , r r t nd r r —C St d f th r n f r f W t r ht , nd & W t r . v. I, 6 ( 66 . h W n xp r n th r lt f th "n h n " t t t n t d n . 0 h h t t r r ht t th l nd. W . 0 , h. 68, , nd d, W . St t. 4 2 ( . 2 2 M ll n, W t r nd r v t n M n : A Cr t , 2 . & E n. 4 , 6 ( r l , l , pr n t 8, t 0. 2 S G ffn , C p r n f M r t r n nd Oth r M n f All t n W t r r , n W t r nd l n th S th t , 22 (In t t. f nd G v t, Un v. f G ., 62 . 6 4 AUSTRALIAN AND AMERICAN SYSTEMS
b. Rationality of Human Behavior. h pr p d l t n r nd d n th pt n th t h n b n t r t n ll nd ll ll th r t r r ht t p r n h ff r n ttr t v pr . h pt n nf nd d. E p ll n r d t rn r t r h r d mystique—it r rd d th n h d ff r nt th n v l bl n r l t b xpl t d. W t r nt l t l f nd t pr d t v l nd, nd p pl ft n d l n t v p th r r ht t t v n f t d n tr bl pr f t bl f r th t d . c. Use Preferences. Cr t n f pr f r n n n th r t h v fl x b l t . n f th t rn t t h v d pt d tr pr f r n : r ht f pr f rr d r t t t r h l nf r r r h v n pr v l t d n t f h rt r rdl f t p r l pr r t . r f r n d pt d n pr r ppr pr t n t t t thr f r : ( v n th pr f rr d r th p r t nd n nd p f r n npr f rr d t r r ht , (2) v n th t t th p r t thdr t r fr n r l ppr pr t n nd r rv t f r pr f rr d t b d v l p d n th f t r , r ( r t n r l f r h n b t n b t nt ll lt n ppl t n f r t r r ht . hr t rn t t h v r nt d nd n t n p r t pr f rr d r b n t t t n l pr v n." v th r h v r t d t t t r pr f r n ntr ll n lt n ppl t n nd thr h v r nt d nd n t n p r ." n f th t t r n th nt nt f th l t f pr f rr d r th r rd r f pr f r n . G n r ll , h v r, th pr f r n
2 4 r l , l , pr n t 8, t 42 r l & , pr n t 2 , t W ll , pr n t 260, t 8, 0 . 275 S r l , r f r n t th U f W t r, 2 Mt. . v. , 4 4 ( . 2 6 S C l . C t. rt. I, § 6 (d t , r lt r l nd n f t r n Id h C n t. rt. , § (d t , n n nd ll n n r n z d n n d tr t , r lt r l , nd n f t r n b. C n t. rt. , § 6 (d t , r lt r l, nd n f t r n . 2 h f ll n t t t t bl h th rd r f pr f r n l t d. Ar z. v. St t. Ann. § 4 4 (S pp. 6 (( d t nd n p l , (2 rr t n nd t t r n , ( t r p r nd n n , nd (4 r r t n nd ldl f , n l d n f h— r l t p nd n ppl t n C l f. W t r C d §§ 06, 2 4, 460 (W t 6 ((I d t nd n p l , nd (2 rr t n—r l t p nd n ppl t n K n. St t. Ann. § 82 0 (b ( 6 (( d t , (2 n p l, ( rr t n, (4 n d t l, ( r r t n l, nd (6 t rp r — nd n t n f nf r r Or . v. St t. § 40. 40 ( 6 (( d t , (2 r lt r l, nd ( n f t r n —p rf r n n t f h rt x. C v, St t. Ann. rt. 4 ( 4 (( d t nd n p l , (2 t r d n n f t r n pr nd t n r t n f p r, ( rr t n, (4 n n nd n r l r v r , ( h dr l tr p r, (6 n v t n, nd ( r r t n nd pl r —r l t p nd n ppl t n Ut h C d Ann. § 2 ( (( d t , (2 r lt r l, nd ( th r —pr f r n n t f h rt W h. v. C d Ann. § 0.0 .040 ( 62 ( nd n t n f n f r r f r "b n f l". W . St t. Ann. § 4 ( (( dr n n t r f r n nd b t, (2 n p l , ( r lr d, h h ld nd rt n r l , nd (4 nd tr l —r ht t nd n nf r r . 6 OS O CO EGE I US IA A COMME CIA AW E IEW
rd r : ( d t nd n p l , (2 r lt r l , nd ( n f t r n . h rd r f pr f r n r fl t th b f n th n n t th t th t t t r n t d. h b t f t p th rr nt th ht. Onl n O l h rd r f th 20 , n r p l d, d t b r l t v l d rn, r fl t n th n d f r l n t r nd t d l t n fl . 2" 6. Protecting the Public Interest.—Prior ppr pr t n h b n n d r d n t v r ff t v n t pr t t n f t r ppl f r p bl ." h n l r ht f n v t n, f h n nd th l t ll b r n z d, b t v r r r l h t r b n r rv d t h p bl . r r ppr pr t n h tr d t n ll pr t d r p d d v l p nt f t r r r b pr v t ntr pr n r . h j d r f pr r ppr pr t n t t h fr ntl d l n d t n tr p bl f t r fl n tr f r r r t n l p rp n t t t n ppr pr t n f r b n f l , nd h b rd n t d h t th ppr pr t v r ht f pr v t ntr pr n r . " v r th nt rpr t t n f b n f l , v r l t rn t t h v n t d l l t n ll n th t t t ppr pr t n f n ppr pr t d t r f r v r p bl ." Ev n th n th d n t r n n r l th t p rt l r n pl p bl d n t n t t t n ppr pr t n?" r t n l p bl r b n r nd r p rt nt thr h t th Un t d St t . h f t th t, f r h t r l r n , th t rn t t h v n t d t l pr v d d f r p bl f t r n th r pr r ppr pr t n t t t n r n h th t rn t t d pt n pr r ppr pr t n n d th t . M n tr fl f r pr t t n f p bl nd f r t d l t n p rp ht t b r l t v l t t bl h h n v r n t ntr d d nt t t . M pp , th nl t rn t t t d pt pr r ppr pr t n, h pr v d d f r t bl h
2 8 r l t f th rd r f pr f r n n p rt l r t t , n t 2 pr . 2 r l , pr n t 2 , t r l , M d l C d , pr n t 8, t . 282 h rd r ntr ll d t r n C n rv n tr t nl . O l . 2 24, h. , § 2 (( d t nd n p l , (2 n f t r n , t pr d t n, l n , nd t d l t n, nd ( rr t n, p r, r r t n, f h r nd th r —r l t d p nd n ppl t n . It lt t l r pl d b O l . 6 , h. 82, § , O l . St t. Ann. t t. 82, § (S pp. 6 , h h t t th t t r r ht r v rn d b th l f th t t . 28 S r l , r f r n , pr n t 8 C nt, W t r Appr pr t n r r t n, nd & W t r . v. 20 ( 66 . 282 S C nt, pr n t 28 , t 2 0 4. t , . ., E p r W t r & r C . v. C d n C ., 20 . 2 (8th C r. . 28 Sp l l l t v ppr pr t n r d b Id h C d Ann. §§ 6 4 0 , 4 04 ( 4 Or . v. St t. §§ 8. 0 . 00 ( 6 . n r l th r z t n f r r r t n ppr pr t n pp r t h v b n n t d b n t t . 2 In r Appl t n 2 A t l., C l f. St. W t r ht d., . 0 0 ( 6 . 6 6 AUS A IA A AME ICA SYS EMS
nt f n tr fl h h n ppr pr t n nv d . I , d pt n n npr r t p r t t , h d n ll. . Prior Appropriation—Conclusion.—The ppr pr t v r ht r t h b n r d d t xt nt b v r ppr pr t n nd b th pr n f r d l r p r n r ht . h t n r ll ff nt b f th r r nt f b n f l nd th b n f pl f l t t n b t l th n ff nt n ll n tr t t n h h l l n th r r t rd d n tr n r ppr pr t n . It h n t f v r d th r n t n f p bl nt r t . . Permit Systems Without Temporal Priorities l v n r p r n t b n d t f r p n th th t r pr bl l n h d, v r l t rn t t h v n t d p r t t t t r pl n r ppl nt n th r p r n d tr n . In , I b t t t d t p r l n npr r t p r t t f r t pr v r p r n t . p r l n npr r t p r t f r d v r n f r t p rp r n r r d n M nn t 28 nd n rt n r f l r d nd f r ." W n n r r h p r t f r rr t n d v r n" nd K nt nd M r l nd f r nd tr l nd th r p rp . h l l t v r p n t th r n d nd f r t r f r nfl t n r b nd t lt pl n th r t . 28 M . C d Ann. 6 04( , (d (S pp. 66 ( x pt n f r d t nd n p l , r h r th x pt n ll n t ff t "pr p r t l z t n f t r r r " . 286 I C d Ann. § 4 A. , .22 (S pp. 68 . n , A d f Exp r n Und r th I W t r r t S t — rt On , t r l r . 4 , 44 ( 6 . 28 r d n f t rn t r p r t l l t n, Ell , v l p n r nd n W t r n th E t rn St t , n r d n f th W t r r C ll 24 (In t t. r h nd & W t r r , . St. Un v., 6 th, W t r M n nt l t n n th E t rn St t , 2 nd & W t r . v. ( 6 l r Sr M l n , E r n tt rn f r l t n f C n pt v U f W t r n th E t rn Un t d St t , 4 Ind. . . 8 ( 68 . 288 I C d Ann. h. 4 A (S pp. 68 . 28 M nn. St t. Ann. §§ 0 .4 A ( 64 , nd d, §§ 0 .4 , .46 (S pp. 6 . r d n f th xp r n nd r th t, hr & p, l t n f W t r U n M nn t A r lt r (M nn. A r . Exp. St . ll. 4 ( 6 . 2 l . St t. Ann. § . 44 (S pp. 68 ( n d n t d r r n t r r l t r d tr t . d t , th t h n t b n ppl d t n p rt f l r d . r n xt n v d n f th xp r n nd r th t, l r & M l n , pr n t 28 , t 2 4. 2 . . St t. Ann. §§ 8: t 0 ( 66 ( n d n t d t r h d . 2 2 W . St t. Ann. §§ 0. 8( ( ( 64 , nd d, (S pp. 6 . r d n f th xp r n nd r th t t t , . . O t rh dt, An E n An l f W n n v r n r t S t f r A r lt r l Irr t n 40 ( h. . th , Un v. f W ., 6 C nt, W n n W t r v r n : A St d f Ad n tr t v C , W . . v. 2 . 2 K . v. St t. Ann. . 0 (S pp. 6 Md. C d Ann., rt. 6A, § (S pp. 6 . 6 OS O CO EGE I US IA A COMME CIA AW E IEW
G v rn nt h v v lv d t b t p f p r t t h h d n t r t pr r t th r p t t t f f r t b n f l . On ph z r l t n f pr v t t v t t pr v nt v rdr ft f t r ppl nd t pr t t p bl . h I p r t t nd th M d l W t r U A t r x pl ." h th r ph z t t ntr l f t r r r d v l p nt t pr t v rn nt nt rpr n rr t n d v l p nt. h A tr l n t r f th t p . h f ll n d n t b b d l t nt r l n x t n t t t nd d n tr t v pr t b v r l ttl l t r t r f dv h pp r d n pp rt f n npr r t p r t t . . r pt n f C n pt .—M t f th t p r l n npr r t t th t h v b n d pt d t A r n h v n t b n n x t n l n n h t h v t n n n h n f r . A n th f t r th t d r n thr h th v r t t t th l t f r ht f ll p r t r rdl f h n th r r nt d. h th p r nt d ff r n b t n t p r l n npr r t nd pr r ppr pr t n p r t t . An th r f t r th t th t p r l n npr r t p r t t t t r r ppl t n f t r t b n f l n rd r th t th r ht b r d nd nt n d.2" r t r d nl f r nt f t r t ll b n p t t . h n pt ll f r th r t n f pr f rr d , nd r pr r ppr pr t n t t t . h r ht b l t b n n f th t r ft r p r d f r . h r r nt t t t t bl h p r t h l f f r t r f r r th r th n n p rp t t .2" 2. Eff n : n f l U , b n , . . Appl t n. p r l n npr r t p r t t b rr fr pr r ppr pr t n v r l n pt th t pr t ff n f . f th t p rt nt t t p r l n npr r t t r b n f l nd l b n n . h b n f l n pt r r th t th r p t th t r t n n •t r r ht t th t r. In pr r ppr pr t n t t b n f l ft n nf n d t r r n t l ppl t n f t r t th l nd f r n b n f t t th pr v t d v rt r r t h dr p r fl .2 h t p r l n npr r t p r t t ft n h v xp nd d th d f n
2 4 I C d Ann. h. 4 A (S pp. 68 M d l W t r U A t, r f t r t ( ndb f t l C nf. f Un f r C r , r d n 4 ( 8 [h r n ft r t d M d l W t r U A t]. 2 h r r nt l f nd n th pr r ppr pr t n t . 2 E. ., . . St t. Ann. § 8: 44 (. 66 (n t v r 2 r . 2 S Sh r Cl b v. Cl b, 0 Ut h 6, 80 82, 66 . 0 , 0 ( . S l d n f h n n l t n f n t rn pr r p pr pr t n t t pp. 6 2 4 pr . 6 8 AUSTRALIAN AND AMERICAN SYSTEMS t n t n l d v r p bl r p bl , " h t r f r n fl t nt n f h p p l t n r f r r r t n l p rp . h xp nd d d f n t n n p n th t d n pt f pr p r f r t r. E nt l t th n pt f b n f l n b th t th n t n th t t r h ld n t b t d r b ll d t n d f th r d nd f r t r n t f d. " h n npr r t p r t t h l d pt d th n pt f l f r ht b n n r t f t r r f l r t t b n f ll f r rt n p r d f t . ht nd r n npr r t p r t t x t nl l n th nt n t b x r d b th r. If h ld r f t r r ht f l t x r h r ht f r th r t n b r f r , th t f l r d d t n t t t b n d n nt f th r ht ( nl h n h r t n h h r b t th t pr pt n , r th f l r br n t t t r f rf t r f th r ht r rdl f r t n 00 Un d r ht r th r b l n t d nd th t r nd r th b r ll t d t th r . h f rf t r pr d r ll p r t ff t v l nl f r l l p l d. r p d n th t n f t r r ht n v r j r d t n . At th t , f r x pl , f r h r d f r p r t n M pp " nd n f t rn t t t d fr th t f p r t n th p r t t . 02 h r , h p f ll , l r n h t v r n nt v t ll th t r t n b r n d t th , r t r l n h th r ht f . r h r f f r nt f t r d v rt d f r n pt v r fl t l z d f r p r."
2 8 I C d Ann. § 4 A. (S pp. 68 nd M . C d Ann. § 6 02( (S pp. 66 d f n "b n f l " th ppl t n f t r t f l p rp th t n r t th b n f t f th t r r, b t d n t n l d t r p ll t n f t r. M d l W t r U A t § 02 d f n t " f t r, n l d n th th d f d v r n, t r , tr n p rt t n, nd ppl t n, th t r n bl nd n t nt th th p bl nt r t n th pr p r t l z t n f t r r r , n l d n , b t n t l t d t , d t , r lt r l, nd tr l, p r, n p l, n v t n l, f h nd ldl f , nd r r t n l ." l . St t. Ann. § .08 (6 (S pp. 68 h n rl d nt l d f n t n. 2 6 A . r. W t r § 02 ( 4 . 00 I C d Ann. § 4 A.2 (S pp. 68 (f rf t r ft r r n n M . C d Ann. §§ 6 0 t 06 (S pp. 66 (f rf t r ft r r n n M d l W t r U A t § 4 2( (4 (f rf t r —n p r d t t d . W t d f n d n th I t t t , nt r l , th f t r " th t t n t p t t t f ll b n f l ," nd th tr n p rt t n f t r "th t th r n x v l n tr n t." I C d Ann. § 4 A. (S pp. 68 . A l n t d v rt n A tr l l t f th t r n t b n f ll d. p r d f n n pr r b d. S n t 60 pr . 0 M . C d Ann. § 6 6 (S pp. 66 . 02 M d l W t r U A t § 4 , nd t t t t d n th C nt pp nd d th r t . h r, W t rn Exp r n nd E t rn Appr pr t n r p l , n f W t r All t n , 4 ( . b r & S. r n d. 8 . 0 . . St t. Ann. § 8: 46 ( 66 . r r n br nd Or n p f pr p rt n l t th nt f t r d. b. v. St t. § 46 2 6 ( 60 Or . v. St t. § 4 . 0 ( 6 . 6 OS O CO EGE I US IA A COMME CIA AW E IEW
C rt nl nn l f ld h lp r d th pr bl f "p p r r ht " nd v r ppr pr t n. °4 b. Locational Efficiency—Use on Nonriparian Land. If t f t r l t b ff nt, t t ll f t r n n nr p r n l nd. A t p r l n npr r t p r t t ld b t p t ll h f t r v l bl . M t f th x t n t rn p r t t t t r l nt n th p nt th t t n t rt n h th r th n l pl f r tr t n r n n f r . Onl th l r d p r t t t t p f ll ll d v r n t n nr p r n l nd. ° An Ill n t t t ll n nr p r n nd r p r t f r nd tr l, n f t r n r p bl t l t p rp . °6 h W n n rr t n p r t t t t ll rr t r t t r n nt n nr p r n l nd pr v d d th t t l rr t d r d n t x d th t h h rr bl n th r p r n tr t l n . 0 h r n r n n t t p r t n n nr p r n l nd, h th r b r p r n r n nr p r n . n f r h h ld b r f d nl n th p rt l r n t n th t ld h rd h p t th r d v rt r . Wh r n nr p r n ll d, th pr bl f n nr p r n r l f t t r n r . Ad pt n f th " nt f d t" n pt ld ll v t th t pr bl . h n pt p r t r r t nd n r ht f f r d t h r th rd p r n l nd t n t t r?" nt f p n t n r r d b th j r d t n n th t rn Un t d St t 0 nd A tr l 0 h h h v d pt d th d v . h r nt n f th p r t nd n r ht f nd th d t r n t n f h r t t r n h ld b ntr ll d b th d n t r n n thr h th n f p r t .
04 Wh th r h f b h r d f r p r t th r z n nt n t n f x t n pr r t n t nt f th p r t t t t n t l r, b t l ttl d bt x t th t f ld b h r d f r n . S C t f r nt n v. r , 262 U.S. 82 ( 2 C t f r v. r , 262 U.S. 2 ( 2 . 0 l . St t. Ann. § . 4 ( (S pp. 68 . S l M d l W t r U A t § 40 ( . An rl r l r d t t t , l . St t. Ann. § 2 .0 ( ( 62 , pp r t r tr t t r p r n l nd. " Ill. Ann. St t. h. , § 6 (S th rd S pp. 6 . 0 W . St t. Ann. § 0. 8( (S pp. 68 . °8 S C. S tt M n r ff, Irr t n n S th rn E r p ( 868 . In th th nt r , pr b bl n r n t n f t r pr t , th n pt n rp r t d nt E r p n t r d . Sp n h f W t r 8 , rt. . ° C l . C n t. rt. I, § C l . v. St t. Ann. §§ 4 , 0 2 ( 6 M nt. C n t. rt. III, § M nt. v. C d Ann. § 8 820 ( 64 b. v. St t. §§ 46 246 t 24 ( 60 v. v. St t. § .0 0 ( 6 .M. St t. Ann. § ( 68 O l . St t. Ann. t t. 82, § 2 ( 2 Or . v. St t. § 2. 0 ( ( 6 x. v. C v. St t. Ann. rt. 8 ( 4 Ut h C d Ann. § 6 ( 6 W h. v. C d Ann. §§ 0.0 .040, . 6.0 0 ( 62 W . St t. Ann. § 4 (S pp. 6 . ° W t r A t 8, A t . 64 , 20 ( t. W t r A t 2 66, § A( ( .S.W. . 00 AUSTRALIAN AND AMERICAN SYSTEMS
. l x b l t .—An bv t p r t t fl x bl t p th t r f th p r t h rt. h t n , f r , b h h. E n t ll h v r d th t th p r d h ld b l n n h t ll r t r v r th r nv t nt n t r r r r . h d pt d b th dr ft r f th M d l W t r U A t h n rt d p r t t r f p t 0 r ," h r t t t r r t r l n n h t ll r t z t n f p t l nv t nt , b t n t v r 2 r . If h rt r p r d l t d, nv t r ll pr b bl rr b t l f " n " t f th r p r t r n t r n d, nd ll b r l t nt t nv t. h K nt t t t p ll d f nt n th r rd, n th t r f th p r t d t r n d b th d n tr t v n ?" In v r l p r t t t t , h ld r f p r t h v t nd d t l t th l p r th r th n nv t n rf t r r r . In M pp , f r x pl , nd tr l r h v b n h ft n t r nd t r b f t h h r l t n p t f th p rp t t f th M pp p r t. In I , f r r h v b n l tt n rr t n p r t l p b f n pl ppl f t r, n b l t f f r r t l t ff nt f nd t nv t n rr t n, nd n b l t t h r l b r t p r t rr t n t . " In W n n, rr t r h v b n b nd n n th r p rp t l p r t nd h ft n fr tr t ll r f ppl th r b f th l tt r r t r ph l nv n n f p r t n nd n p t f th ll r t r p t l nd p r t n t r b f r p r n l nd l t t n p d b th p r t . h n f n f th tr nd v d ntl th t t l t h n r nd t r pl nt f l th t r f th p r t pl v r n r r l n th d n f f r r h th r r n t t nv t n rr t n ppl d b tr . h n npr r t p r t t fl x bl n th t t pr v d f r tr n f r b l t f th r ht t r n t tl t th l nd h r th t r d 8 h fl x b l t f th t n b n r d b mak- ing th r ht tr n f r bl r rdl f pl f . 4. r t t n f th bl Int r t—C n pt f M n r t t d h n t r nt r n z d n O C nn ll, I W t r St t t — h C n t t t n l t f l t n Ex t n U f W t r, 4 I . v. 4 , 80 ( 62 r l , l , pr n t 8, t 2 26. M d l W t r U A t § 406. . . St t. Ann. § 8: 44 ( 66 . 4 K . v. St t. Ann. §§ . 40, . 0( (S pp. 6 . An th r t n r fl x b l t t pr v d f r nd n t n b pr f rr d l f r , th p n t n f r t r n t n f p r t b f r t r n l d t . W. . Ch p n, r n t n fr p r n tr n , n r d n f th W t r r C ll 46 (In t t. r h nd & W t r r , . St. Un v. 6 . 6 O C nn ll, pr n t , t 80. . O t rh dt, pr n t 2 2, t 220 2 . S p. 666 & n t 0 pr . 0 BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL LAW REVIEW
Flows.—The public interest requires that any system of water alloca- tion should establish a net minimum flow for public purposes, and should protect it from invasion by private diverters. Commercial navigation, recreational boating, fishing, hunting and swimming are some of the public purposes that should thus be furthered. As the population of the East grows, the significance of these public uses and the political importance of preserving and enhancing them will in- crease. Under riparianism, private rights have always been subjected to the superior public rights. All that is necessary, if a permit system should be adopted in a previously riparian state, is to quantify those public rights. Thus nothing will be taken from existing users, and they will benefit by having the extent of public rights defined. The Florida, Iowa and New Jersey nonpriority permit systems and the Mississippi prior appropriation system provide for establishment of minimum streamflows.31° A rather large base minimum protected flow is established in Iowa, being "the flow equalled or exceeded by the stream involved 84 percent of the time between April and September" in normal past years, as determined by the U.S. Geological Survey streamflow records.'" Adjustments are made up or down to reflect the demand of the public interest. The Kentucky statute gives the administrative agency more dis- cretion. It may refuse a permit application if the quality, time, place or rate of withdrawal will be detrimental to the public interests of rights of other public water users."' Otherwise, it cannot deny a permit to a responsible applicant.322 5. Substitution of Permit Systems for Riparianism.—If riparianism should be replaced by any other system of allocation, one must consider how to treat vested riparian rights.' Riparian states which have substituted permit systems for riparianism since 1945 and have pre-
l . St t. Ann. § . 4 0 (S pp. 68 (d f n d b d. §§ .08 (8 , ( I C d Ann. § 4 A.22 (S pp. 68 (d f n d b d. § 4 A. M . C d Ann. § 6 04( , (d (S pp. 66 (d f n d b d. § 6 02( . . St t. Ann. § 8: 40 ( 66 (d f n d b d. § 8: . l r d pr h b t d v r n h h ld t r ll nt rf r th t r d v l p d nd p r t d f r r r t n l p rp r t r t ttr t n . l . St t. Ann. § . 0 ( 60 . 2 n , pr n t 286, t 40 4 . 2 K . v. St t. Ann.. § . 0( (S pp. 6 . 22 Id. § . 0(2 . 2 h r, r nd Eff t f E t rn Appr pr t n r p l n Ex t n ht , th Sp l E ph n th M h n r p l, n f W t r All t n 44 ( b r & r n d. 8 O C nn ll, pr n t K n , l t n f W t r ht nd r th l r, n W t r r nd th 26 (Un v. f M h. S h l, 8 . S r, h p r n ht r p rt , n W t r r nd th (Un v. f M h. S h l, 8 . 02 AUSTRALIAN AND AMERICAN SYSTEMS
rv d r pr t t d x r d r p r n r ht r l r d , K n , M pp nd r . h d n t r n n n I h r f d t r n z th v t dn f n r p r n r ht , x r d r d r nt. It h bj t d ll ppl t n f r p r t f r rr t n thdr l t th r v h th r r n t th thdr l nt d t d th t. h v h n t l d t th tt n ff f t r t f r r r p r n . In t f r t 0 r f p r t n th I n h n t d n d n p r t b t h f nd ll t b b n f l. " In fr nt , h v r, th nt, r t nd d r t n f thdr l r t d h v b n r d d. Cl rl , I h n t t f d n th n ppr h n r t l t r h rt . rth r, th I t t t pr v d th t p r t h ll b r nt d nl p bl nt r t r th nt r t f pr p rt n r " th pr r r p r r r ht " r dv r l ff t d. h n th t t, f n t ll, r p r n n xp t t bt n p r t l n t r rpl t th n pr t t d fl nd x t n d v r n v l bl . h r l t t f th n t t t n l t f th pr v n ll h n n t r v l bl nd r p r n d n d p r t f r th t r n. r r ppr pr t n t t t n Or n nd K n h h t ff n d r p r n r ht nd h h r n z d nl th h h r b n x r d r h ld n t t t n l r n bl r l t n f r th n r l lf r . 6. Analogous Rights Created Through Army Corps of Engineers.— d th n npr r t p r t, h h r t d b t t t t t , th r nd f t r r ht th t r t d b f d r l t t t . If th Ar C rp f En n r nv lv d n r l t n r v r b p r t n r r v r , t h p r nt r ht t pr pt t rf t pr t t th n v bl p t f t r f th Un t d St t . " If n f th 24 l . St t. Ann. § . 0 ( 60 K n. St t. Ann. §§ 82 0 (d , 0 (S pp. 64 M . C d Ann. § 6 04( (S pp. 66 . . St t. Ann. § 8: 4 ( 66 . S M d l W t r U A t § 0 . 2 Cf. n , pr n t 286, t 2 24. 2 Id. t 2 , 2 Id. t 4. 28 I C d Ann. § 4 A.20 (S pp. 68 . M pp h l r pr v n. M . C d Ann. § 6 0 (S pp. 66 . h pr v n r n ntr t t th A tr l n d tr n th t th n h b l t d r t n h th r r n t t d v r n l n . W t r A t 8, A t . 64 , § 204 ( t. C ntr l f W t r A t 2 , § (S . A tl. W t r A t 2 66, § 0 ( .S.W. . 2 S f v St C . v. , 24 U.S. 440 ( 6 nn v. S rh 4 . S pp. 6 ( . K n. , ff d p r r , 2 U.S: 86 ( 6 . 0 h Un t d St t t t t r t d t r r ht n n v bl tr th t p n t n. Un t d St t v. Ch ndl r nb r W t r r C ., 22 U.S. ( . On th p nd ff t f th n v t n rv t d , M rr l , d r l r n W t rn W t r : h v t n r nd th l f C p n t n, t r l r . ( 6 M rr l , d r l St t ht nd l t n §§ 0 . , n 2 W t r nd W t r ht ( . Cl r d. 6 . 0 BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL LAW REVIEW water thus appropriated from common law riparians is found to be surplus, the federal government may either allow the surplus water to be used by riparians or may sell or assign it.' Surplus water sold or assigned by the federal government retains its superior federal status and may be used in derogation of all common law or state- created rights held by riparians. Right to such water is thus secure. Federal legislation authorizes the Corps of Engineers to provide additional storage capacity in reservoirs for nonfederal purposes if the local governing bodies contribute to the cost of the enlargement. 2 That additional water may prove to be subject to condemnation under the federal navigation servitude."' If it is, then the water rights to that additional water, whether allocated to private users by the federal government or the local governing body, may retain its federal status. Those derivative rights would be superior to any common law riparian rights or any rights created by state permit.
7. npr r t r t S t —C n l n.—A temporal nonpriority permit system is well adapted to the state function of planning the development of water resources. The state agency's authority under the system to grant or deny permits or renewals empowers the agency to favor productive development of the resource. The same is true of the authority to permit nonriparian use. Further, the power (inherent in some prior appropriation systems) of preferred classes of users to condemn inferior rights could be incorporated in a nonpriority permit system; it would tend to promote higher uses. The authority to estab- lish minimum protected streamflows can be used to enhance recrea- tional uses, if set at a high level, or industrial and agricultural uses, if set at a low level. The power to reserve water for future development and for various public purposes can be used to implement various long-range plans. Permit systems, especially permit systems which do not vest rights, have the advantage of allowing a state agency to promote its plans for development of water resources in whatever manner seems best in the interests of the public and of economic development of the state. The nature and degree of state intervention contemplated at any time will be determined by the accepted concepts of private-public
h C rp f En n r h t t t r th r t t ll rpl t r f r d t nd nd tr l , pr v d d th ntr t f l d n t dv r l ff t th n x t n l f l f h t r . A t f . 22, 44, § 6, 8 St t. 8 0, nd d, U.S.C. § 08 ( 64 . 2 l d C ntr l A t f 6, § , 4 St t. 2, dd d b W r p rt nt C v l Appr pr t n A t f , § , 0 St t. , U.S.C. § 0 h ( 64 . C rp r r v r nl r d nd r th l l t n r nd r n tr t n n th K v r t C rl l nd Sh lb v ll , Ill n . W t r r ht fr th r rv r r b n ll t d b th Ill n p rt nt f bl W r nd ld n , v n f W t r . M rr l , pr n t 0, §§ 0 . . . 04 AUSTRALIAN AND AMERICAN SYSTEMS
nt r t n. h d r f d r t t t nt rpr pt d n A tr l n t l l t b pt d n th ntr n th r r r v rn nt l n t l l t bd t ll r p n b l t f r r r d v l p nt. h t p r l n npr r t p r t t , r th n n th r, l v th d r p n f r th t t t f t r t t lt r t nt rv nt n p l , h l pr t t n t l f r r n bl p r d f t . A n I , th pr r p t f r d v l p nt b l ft t th pr v t ntr pr n r, bj t t r l t n n th p bl nt r t. If, t l t r t , n th t rn Un t d St t r A tr l , t t d d t t pl r t v r l , th t h n f p l b d th t r pp n th p r t t . E. Market Place for Water Rights S v r l n t f l th t r p r n r ht n th E t r t n r t v n nt v f r pr v t nv t nt n t r r r d v l p nt. h f nd, n th th r h nd, th t th pr r ppr pr t n t t pr t d n th W t t r d t ll h ft f t r r ht t n . h b l v th t ll d f n d t r r ht h h fr l l bl ld pr v d th t t f t r th d f r t n r t f r p t l nv t nt n rt n d ppl , h l r t n n fl x b l t t d t n . 4 S h t r fr d th th nd f ll n r ht t h ft t th t b n f l , th t , t th f r h h t r t v l bl . . C n pt . . The Hirshleifer-De Haven-Milliman Proposal. h pr d n nt th n n b n t n th f ld pr b bl r pr nt d b r hl f r, C. v n nd r W. M ll n h pr nt n r l z d f r p rt pr r f r r f r f t t t r l : r t, n tr nd t rd ntr l z d t t d n tr t v ntr l b n f p r t h ld b b nd n d. It r d th t t t n t nd t b rb tr r nd nn t h p t r t r r d t l d n l d r xp r n t h t n t t t t ff t v . S nd, l rl d f n d t r pr p rt r ht b d n th ppr pr t v r ht d tr n h ld b r t d th t r ll h v n n b pr p rt r ht n t r, rt n n t n r . h rd, t r r ht h ld b fr l tr n f r bl b l n r , nd h ld n t b r d r t b th t t nd r n v t n rv t d r pr pt r p bl r ht n pt . rth, t r l h ld r n z 4 S , . ., . r hl f r, . v n & . M ll n, W t r S ppl : E n , hn l , nd l , h . I, I , I , II ( 60 G ffn , C p r n f M r t r n nd Oth r M n f All t n W t r r , n W t r nd l n th S th t , 200 (In t t. f & G v t, Un v. f G ., 62 M ll n, W t r nd r v t n M n : A Cr t , 2 . & E n. 4 ( . . r hl f r, . v n & . M ll n, pr n t 4, t 2 4. 0 BOSTON COLLEGE INDUSTRIAL AND COMMERCIAL LAW REVIEW
n l t f t r ppl nd nt rd p nd n f . r r t tr n t n h ld b r l t d h r n r t pr t t th rd p rt fr p ll v r t r lt n fr tr n f r f t r r ht r h n n p tt rn . r t t v d v t th nd ld n l d z n n r tr t n , n p l n n th l nd nd tr , t x t f n n r b r nt h nd p n t n f r d . h d v r d n d t r t d ntr l z d r t h r t r ll t n d n r d t r n d b n f r pr r l b th pr t h l th rd p rt r pr t t d fr th n n f th p r t n f tr d r nd r . b. G ffn Proposal. M. M n G ffn h d n pr p l th thr p n nt : b d pr , tr n p rt t n h r , nd l nd t x. 6 Und r th h , d f n d t r r ht ld b ld b t r t r t h d l d fr nt nt rv l t p l t r r ht x h n . A r h h p r h d r ht ld n t nl nt l th t f th n xt l , h n t ld n b v l bl f r p r h . S l ld b d rd n t fl x bl pr h d l b d n r n l t l t nd d n d t ll ll v l bl t r. At th t f h l h r ld b t h d l nd t n h h t r h ld t t v r pr . r x pl , b r ht b d f r 000 ll n t $ nd f r n th r 000 ll n t $. . h t r t r ld ll th v l bl nt t t th h h t b d pr v l nt l th ppl xh t d. It ld t h pp n, th n, th t pr v r ld b tb d, nd ld r n t r t v n l . r ld b fr n b rd nd ld n t r fl t tr n p rt t n t fr th ntr l d tr b t n p nt. r n p rt t n t ld b n dd t n l h r n ll , f x d l nd t x ld b l v d n t ll l nd rv d b th t . h t x ld b h h t n r th r f ppl nd ld b l r f rth r . It ld r fl t th r l b l t f rv (h h t n r th r f p pl , nd th t f tr n p rt, h h ld b h h r f rth r . G ffn xp t th t t l n l v t f t r t b r l t v l n f r , r t r nl l l th d t n fr th r f ppl f r h r lt ld t f th th l nd p l t l d nd f d tr b t v t ." Wh l b d pr n ll ll n r t p r h th t r r ht th n d f t r ff ntl v l bl t th , G ffn b l v x t n r n d n t f r b t l n th r t r ppl b "th n r t n ll p n r l , t nt n th v l f th r n nv t nt , h l th n r t n t t th t f th r t n n nv t nt t f nd th r d l th n ff rd t p f r t r." " 6 Id. t , 2 2. G ffn , pr n t 4, t 20 0 . 88 Id. t 224. 06 AUSTRALIAN AND AMERICAN SYSTEMS
G ffn pr p l pr b bl t fr h r r h n tr n f r f t r r ht n v r l rr t n d tr t f C l f rn . f nd th t t r r ht fr ntl r n t tr n f rr d b f th r t d ff lt f v r n b t l t tr n f r nd r th pr r ppr pr t n p r t t t t . t h v b n pr d l b th pr l f r t n f nd p nd nt p r ll l rr t n t r d tr b t n t n C l f rn . 2 ". 2. Security of the Market Place Right. a. Hirshleifer-De Haven-Milliman Proposal. h r tpl r ht nd r th r hl f r v n M ll n n pt ht t b t r . It ld b d f n t n v l , r t f thdr l nd pr r t f r ht, nd ld th b r l bl f r nv t nt p rp . b. Gaffney Proposal. Und r th G ffn pr p l, t r r ld l h t r r ht t n t t h h r b dd r. Sh ft f t r t n p l r nd tr l r n v t bl nd r h t h r h d nd x t, b r lt r l r nn t p t th th n b dd n t t n. n , th G ffn pr p l nh n th nfl n f r t f r t th t f r t n h hl n r t r r ht. If t n th p bl nt r t t pr t r pr rv rr t d r lt r n r h r h v d nd n t r b n p l t nd nd tr r l l , th t r ll t n t t r fl t th t p l d n. h G ffn pr p l d n t d .
. Applicational Efficiency of Use. . Hirshleifer-De Haven-Milliman Proposal. h r hl f r v n M ll n pr p l ld, n p r t n, f v r th tr n f rr l f t r t h h r v l r , nd th t tr t t r r l n th r r r np t n th n pr . h pr p n nt p x z t n f tp t p r n t v l f t r th b t r f th l v l f th . h l f x z t n t b h v d b n r n h ft f t r t th r h n ff rd t p th t. O n r f r ht nd b dd r ld th h t h th r h ft h ld t pl —n t n r pr nt t v
339 M. G ffn , n Inh r nt n W t rn W t r : A C l f rn C St d , n E n An l f M lt pl U , 0 4 ( r d n f W t rn A r lt r l E n r h C n l, n, Ar z., n. 2 24, 6 , W t r nd n r nd E n v l p nt f th W t r , p rt . . G ffn nd r l h d l v l x h n n th t r tr n f r n r p n t th t d . S r l , W t r nd E n r n f r f W t r, 4 . r E n. 4 ( 6 G ffn , W t r nd E n r n f r f W t r: A r pl , 44 . r E n. 42 ( 62 r l , W t r nd E n r n f r f W t r: A j nd r, 44 . r E n. 4 ( 62 . 349 On th p nt, l n, W t r r v l p nt n C l f rn : h C p r t v Eff n f l, St t nd d r l A n , n W t r r h , 8 (A. Kn & S. S th d. 66 . 0 OS O CO EGE I US IA A COMME CIA AW E IEW
f th v r ll p bl nt r t. If x z t n f tp t r fl t th l f t , p rh p h h v l n p l nd nd tr l ht t b pr f rr d t l r v l r lt r l nd r r t n l . Al , f th d n f pr v t ntr pr n r d r pr nt th p bl nt r t, th n r l r t pl t ld b ll b n f l. h r v r r l t n, h v r, h th r th pr p l f th thr n t d t l r fl t th p bl nt r t n l r v l h rr t d r lt r nd r r t n l f l t . b. Gaffney Proposal. h G ffn b d pr pr p l bj t t th tr t r t n v n r t r d r . In p r t n t ld pl p l pr n f t r f r n p l t nd nd tr , n th nt r t n n r ll p h h r pr th n r lt r n, v n n th n t n h n r lt r l ld b n th b tt r nt r t f th p bl . Of r , th t r t r ld ll t nl p rt n f th t r t h h r v l , b t th t ld d f t th pr r p rp f th n pt th t th r t pl h ld d t r n th d n b t th t p f . 4. Flexibility to Accommodate New Uses. . Hirshleifer-De Haven-Milliman Proposal. h r hl f r v n M ll n pr p l pp d t ll tr n f r f t r t h h r v l . h ll r t th xt nt n r f t r r ht r ll n t ll th r r ht t n r . h h n f t r h ld n t b n r d b r ht h ld r n t b ll n t ll t r v n f t d n tr bl pr f t bl f r th t d . r f l th n r n ff t v b rr r n t n r h nt n t r ppl b n r . If th pr th r r ht n t ntl n v r h h l v l, th ff t v l pr v nt tr n f r t n d r bl nd n r p l t n n t r r ht . If ff r r t h h enough to t th r hth ld r d nd , h v r, th n r ll pr b bl v nt r t ll n n h t th t rth h l . On pr bl ff t n th pr p l nt rd p nd n f t r . h t d n t t d l th th p b l t th t nt rd p nd n b nt rl d th t h ft n th l t n f d v r n t pl f ld b pr t l. h r r nt f p n t n f r ff t d th rd p rt f r d t n d r lt f h n n p tt rn ld r n l n
4 Oft n t d ff lt t n d f n t r d f n bl n t r v l t r r t n l b n f t . O td r r t n r v C n, E n Ev l t n f O td r r t n n f t , n E n St d f O td r r t n 4 , 4 (St d p rt . 24, 62 C. r, r t n ld f r E n An l , n r t n r h n th Gr t l n r E n C . f th Gr t l n Ar , (pr d n f n r p n r d b Gr t l n r E n C . f th Gr t l n A r . C n l t .E. St. Un v., S pt. 2 , 6 . 42 S d n t pp. 6 2 4 pr . 08 AUS A IA A AME ICA SYS EMS h hl d v l p d r v r t t n h ft n th r n n . h t ld th t nd t fr z h t r p tt rn n h hl d v l p d r v r . b. G ffn r p l. h G ffn pr p l h v th lt t n d t n f n . Sh ft f t r t h h v l ( h h n pr t n b t ff rd t b d h h ll r t t ll t h l b th t r t r. . r t t n f bl U .—A pr p d, b th r t pl n pt d n t pr t t fl f t r f r p bl r r t n l , t d l t n, f h h b t t, r n n t . h n pt f th n pr t t d fl , d d n r l t n t t p r l n npr r t p r t t , ht b n rp r t d. E t bl h nt f h fl , h v r, ld r r t t r l t n h h v l t th pr n pl f d ntr l z d d n n h h th r t pl n pt d n d t pr t . 6. C nt.—E n r t pl t t th t th r t t l b n f t h v d h n r r p t t h h v t th h h t d ll r nd nt v l . h r hl f r v n M ll n pr p l t h v r t f th t r r ht nd fl x b l t t d t n b r l n pl t l n t th t x z n ff n . It t t ll n r l n d f r r r t n l f l t , n n t , nd pr rv t n f ll d r bl b t l n ll ff nt t v t . r , n ff n l th t h ld b pr t d t l r d r . It b tt d, h v r, th t n n n v l r b n v r r p rt nt, nd th t t r l n pl t l n n ff n l n r h . n th l , h ld n t n r pr bl f r t , ff n , nd fl x b l t n d n n l l t t ppl nt r r pl th x t n r p r n r pr r ppr pr t n t . III CO C USIO h A tr l n t r ll t n t t t r p r t t r d v l p d n r d nv r n nt h r th pr d n nt h b n rr t n. A tr l r l t t r ll t n th r hl p rt f n t n l p l f nt n v l nd d v l p nt. h l f th t ntr v d n tr t v n d d r t n r p r t ll t t r t d v rt r n d nd t d rr t n r . n bl th t t t x r th br d p r , n l r p r n r ht h v b n b l h d nd r pl d th d v r n l n n t . h d r f v rn nt l r l t n r r d t n th r t r r r f A tr l ld pr b bl b p l t ll n pt
4 S d n t pp. 6 8 pr . 0 OS O CO EGE I US IA A COMME CIA AW E IEW
able in the United States today, but may be proved necessary in the future. The American systems (riparianism in the East, prior appropria- tion in the West) show signs of becoming outmoded as the extent and • multiplicity of water demands increase. Riparianism seems to create insufficiently secure rights in areas of heavy water demand. Ad hoc methods to firm up riparian rights may prove to be too limited in scope as water demands multiply in eastern urban and industrial areas. On the other hand, a consideration of prior appropriation suggests that historical use patterns are congealing into a rigid system. The scheme seems prone to locational rigidities and interdependencies among uses. Furthermore, the western interpretation of the "beneficial use" has failed to preserve quantities of water for recreational uses and reten- tion of scenic amenities. In consideration of these problems, several states in the East have experimented with temporal nonpriority permit systems. These systems are capable of preventing overappropriation of water. They provide for preservation of minimum streamflows for recreational uses and allow for private arrangements for proration of local scarcities. The state is able to regulate use under this system to the extent that parti- cular circumstances require. Rights are sufficiently secure to encourage private development of water resources in water-scarce locations, and at the same time retain a degree of flexibility for the accommodation of new uses. A temporal nonpriority permit system, like those in Iowa, Minnesota and Australia is a good solution to the water problems of today and tomorrow.
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