Water rights determine which users can use water, how much, and for what purpose. Water rights provide a framework that prevent uncontrolled use, which in turn, reduces the risk of running into water resource conflicts, over abstraction, and environmental depletion. This Tool introduces the key terms related to water rights, presents the types of water use rights, discusses two main approaches to determine water use rights, and describes the processes related to water rights abandonment and termination.
A water right is essentially a "a right to abstract and use a quantity of water from a natural source such as a river, stream or aquifer" (Hodgson, 2006). Formal rights to use or withdraw water can be divided into two main categories. First, there are “basic water rights” which are those that are conferred automatically through primary legislation , i.e., rights that are incorporated into acts, policies, laws, and regulatory principles and mechanisms (Burchi, 2005). Rights to drinking water and water for sanitation and hygiene fall under this first category, for instance (Tool A2. 05). Second, there are “water use rights” acquired through an administrative process involving water allocation, such as permitting or licensing authorising particular uses of water. This involves all other rights to abstract or use water resources, such as using water for irrigation, industry, hydroelectricity, etc. This is also a third category of water rights known as the “environmental reserve rights”. In some countries, governments have decided to set a minimum amount of water aside and reserved for ensuring the sustainability of the environment, which therefore cannot be allocated for any other usage. Figure 1 provides an illustration of those three categories of water rights.
Figure 1. Categories of Water Rights (Bird et al, 2009).
Water allocation is a process that defines how water resource is distributed to its users. This creates a water use right for a licence or permit holder. A system for the granting water rights needs to be competitive and differentiate among various water uses (Rijswick, 2014). Since a water right entails a legal entitlement to divert, store, and regulate for any use extracting benefits for the user, these systems are often more advanced in regions where demand equals or exceeds proposition. Each water allocation system refers to a certain list of priorities for water use defined in laws and policies. Thus each water right granted by a regulatory authority (Tool B1.01) will be subject to specific terms and conditions that regulate how this right can be enjoyed, transferred, adapted, and revoked (Bird et al, 2009).