Mallawa Irrigation

Buying and Selling Water

Buying and Selling Water

Transferring, leasing or other dealings with your water allocation

If you hold a supplemented water allocation or an unsupplemented water allocation (channel harvesting allocation) in the St George Channel Scheme, your water allocation is distributed to you by Mallawa Irrigation.  Mallawa Irrigation is the Distribution Operations Licence (DOL) holder for the St George Irrigation Scheme (including the Thuraggi watercourse). Sunwater is the bulk water supplier and is the Resource Operations Licence (ROL) holder for the area.

The supplemented water allocations are subject to Mallawa Irrigation’s Customer Contract.  If you hold a supplemented water allocation in the scheme, you are a party to this contract by virtue of the provisions of the Water Act (see section 738I).

If you hold a channel harvesting allocation you are party to a channel harvesting diversion contract. These were transferred to Mallawa Irrigation from Sunwater in July 2018.

If you want to move, sell, sub-divide or lease your allocation you must let us know and there are various steps that must be taken to complete the change.

How do I know if my water allocation is subject to these arrangements?

You will know if your allocation is an allocation which is subject to arrangements with Mallawa Irrigation if the title search for the allocation, obtained from the Water Registrar, is marked with an administrative advice noting the allocation is subject to a Distribution Operations Licence.

Do I also need to contact Sunwater?

Yes, you must also contact Sunwater as it has certain steps to follow before a transfer of the allocation can be registered.  Please visit their website for further information on the steps and processes involved. https://www.sunwater.com.au/water-for-sale/process-overview/

How do I transfer or lease a supplemented water allocation in the Scheme?

To permanently transfer or lease a supplemented water allocation within the St George Channel Scheme, the process is as follows:

1.                 The seller/ lessor must:

·                  complete Mallawa Irrigation’s Disclosure Statement and provide this form to the buyer/lessee so the buyer/lessee understands the obligations associated with the water allocation,

·                  at the same time provide the buyer/lessee with an “Acknowledgement notice for water allocation to which distribution operations licence applies” (DNRME Form No. W2F164).

Under the Water Act, the above Disclosure Statement and Acknowledgement Notice must be provided to the buyer/lessee before entering into the contract for transfer or lease (see section 155 of the Water Act).

2.                If the location from which the water allocation is to be taken changes on the sale or lease, Mallawa Irrigation’s consent is required to that change.  In addition, the water allocation cannot be permanently moved from the St George Scheme without the payment of termination / exit fees to Mallawa Irrigation (see the fee schedule and customer contract for details).

3.                The buyer/lessee must provide Mallawa Irrigation with details of the proposed transfer or lease before it occurs and be given:

·                  a copy of the completed Disclosure Statement and Acknowledgement Form,

·                  a current title search for the relevant water allocation, and

·                  if the buyer or lessee is a company, a current company extract from ASIC showing details of the company.

The documents can be emailed to accounts @mallawairrigation.com.au

4.                The seller / lessor must ensure that all amounts owing to Mallawa Irrigation are paid on the transfer or lease of the water allocation.

5.                Supplemented water allocation’s taken from the St George Scheme are subject to the standard Mallawa Irrigation’s Customer Contract.  The contract is a deemed contract and will automatically apply to the buyer or lessee on registration of the transfer or lease.

6.                Before the transfer or lease can be registered by the Water Registrar, the following documents are required by the Registrar:

·                  “Acknowledgement notice for water allocation to which distribution operations licence applies” (DNRME Form No. W2F164) signed by the buyer or lessee, and

·                  “Notice to registrar of water allocations of existence of supply contract” (DNRME Form No. W2F152) signed by Sunwater (as the ROL holder).

How do I transfer or lease a channel harvesting allocation?

1.                 Unsupplemented water allocations (commonly referred to as channel harvesting allocations) in the St George Scheme are either registered:

·                  to the user of that allocation (post-transformation allocation), or

·                  to Mallawa Irrigation, who makes the allocation available to the user (pre-transformation allocation).

These allocations are all subject to channel harvesting contracts with Mallawa Irrigation.

2.                Post-Transformation Channel Harvesting Allocations: To transfer or lease a channel harvesting allocation registered in your name, you need to follow the process for a supplemented water allocation (refer to above except you will not need a DNRME Form W2F152 from Sunwater) and in addition:

·                  the buyer / lessee must enter into a Channel Diversion Contract with Mallawa Irrigation before the transfer or lease and the seller/lessor must ensure all amounts owing are paid to Mallawa Irrigation. A copy of this contract will be provided on request and on the details set out above being provided, and

·                  a “Notice of proposed transfer or lease of unsupplemented water allocations” (DNRME Form W2F148) will need to be completed and lodged with DNRME.  A Dealing Certificate will then be issued by DNRME to be lodged with the Water Registrar.

3.                Pre-Transformation Channel Harvesting Allocations: If the allocation is held by Mallawa Irrigation, the buyer/lessee must enter into a channel harvesting contract directly with Mallawa Irrigation before the transfer or lease.  Mallawa Irrigation is seeking to facilitate the transformation of the remaining channel harvesting contracts and will require the buyer to take steps to facilitate the transformation.  More information can be obtained by contacting Mallawa Irrigation directly.

What do I do if I need or want to subdivide or amalgamate my water allocation?

Under Mallawa Irrigation’s Customer Contract, you must advise Mallawa Irrigation of the proposed change to your allocation and consent from Mallawa Irrigation will be required if the location from which the subdivided allocations is changing within the Scheme.

You should also contact SunWater as the ROL holder.

What do I do once the transfer, lease or subdivision is registered?

Once the transfer is registered by the Water Registrar, the Registration Confirmation Statement needs to be emailed to Mallawa Irrigation within 7 days of issue.  The registration date will be the start date for the new contract.  You must also keep Mallawa Irrigation notified of your contact and billing details.

Can I become a member of Mallawa Irrigation?

If you are a customer in the St George Scheme and not already a member, as the holder of a supplemented allocation, you may be eligible to become a member of Mallawa Irrigation, a company limited by guarantee whose members are supplementary water allocation holders in the Scheme.  If you would like to become a member of Mallawa Irrigation, you should contact Mallawa Irrigation for details.

Does Mallawa charge an administrative fee for the above?

Mallawa does not currently charge customers any administration fee for the transfer or lease of an allocation within the scheme.  We understand SunWater does charge for these transfers and their fees can be found on their website.

Where can I find the DNRME Forms?

The DNRME forms can be found here.

Where can I find Mallawa Irrigation’s Customer Contract?

The Customer Contract can be found here.