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Frequently Asked Questions

Frequently Asked Questions

We understand there is lots to learn about the water market and related industries. Throughout this website you will find collections of the most frequently asked questions. This page contains them all.

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Long Term Leasing

What else do I need?

Leases should all be established through a contractual arrangement which clearly specifies the rights and obligations of each party, the lease fees and the payment terms.

In addition to the contract, application forms need to be submitted to the relevant water authority to formalise the arrangement. The time to establish a formal lease depends on the jurisdiction however it generally takes a minimum of 4 weeks.

How does Long Term Leasing work?

The Lessee receives complete access to the entitlement for the duration of the lease, assumes all risks associated with seasonal determinations and pays all outgoings associated with leasing an entitlement.

The Lessee pays an amount per volume (ML) to lease an entitlement regardless of what the seasonal determinations are.

The seasonal determinations and carryover functionality associated with the entitlement is granted to the Lessee in exchange for paying a fee to the Lessor and all outgoings associated with the entitlement.

If a Lessee has leased 100ML of water entitlement for $200 per ML per annum, the price will be $200 per ML regardless of whether the entitlement receives 100% seasonal determinations or 20%.

What is Long Term Leasing?

A lease of water is similar to the lease of land in the terms that it is an agreement between two parties to lease an agreed parcel for a price and a term. Each state has various mechanisms to register a lease and all options should be discussed to allow an agreement to be formed.

Leases should all be established through a contractual arrangement which clearly specifies the rights and obligations of each party, the lease fees and the payment terms.

In addition to the contract, application forms need to be submitted to the relevant water authority to formalise the arrangement. The time to establish a formal lease depends on the jurisdiction however it generally takes a minimum of 4 weeks.

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