Resource Management: Central Plains Water v. Ashburton Water

With shades of goldminers racing to be first to stake a claim, the Court of Appeal has ruled the first to file a complete application for water rights gets priority for a hearing. This gives “first mover” advantage to those quick off the mark and leaves rivals in the position of having to attack the proposal – not advance their own interests.

Demand for water can exceed supply. There is no separate regime in New Zealand dealing with claims to water resources. Claimants need to apply for resource consent under the Resource Management Act 1991.

Consent applications have been a hot issue in Canterbury where conversion of sheep and cropping land to large industrial dairy units has led to increased demand for water use. Anglers, jet boat enthusiasts and local authorities jostle with large commercial users in disputes over how much water can be properly extracted from rivers such as the Rakaia and Waimakariri.

The courts have adopted a first come first served approach: whoever first files a completed water resource application has the right to be heard first. Applicants with competing claims can object to the filed proposal, but are not entitled to put up a counter application to be judged against the proposal filed first.

Since the case was heard, Parliament enacted the Resource Management (Simplifying and Streamlining) Amendment Act 2009 to reduce the procedural hurdles in getting resource consents dealt with.

Central Plains Water Trust v. Ashburton Water Trust – Supreme Court (18.12.09)

(04.10.005)