Water Sustainability Act in BC: How It Affects Your Property

If your property relies on a well, a creek or a spring, the Water Sustainability Act affects what you can do with that water and what you take on when you buy or sell. The rules are not always obvious from the lot itself.

This article explains the main points for rural owners and buyers in British Columbia. Your own situation, especially if you use surface water, may need confirmation from a lawyer or the water authority.

This article covers the law of British Columbia.

When you need authorization to use water

Under the Water Sustainability Act, a person generally needs an authorization to divert or use water. There is an exception for groundwater: a person may divert and beneficially use groundwater from an aquifer for domestic purposes, subject to the regulations.

For surface water, such as creeks and springs, licensing rules should be confirmed for your specific source before you rely on it. Ask the seller what they use and for any paperwork, and have a lawyer confirm what applies.

Domestic wells versus non-domestic use

Households using well water for domestic purposes are exempt from licensing and from paying provincial water fees and rentals. All users of groundwater for non-domestic purposes, such as irrigation, commercial or industrial use, need a licence.

A licence application carries a one-time application fee (minimum $250) and annual water rental fees that depend on the use purpose and quantity.

Being exempt from a licence does not mean the water is safe to drink. Health Canada guidance says to test well water for microbes at least once every 6 months, and any E. coli in a sample means the water is unsafe to drink. Nitrate can only be found by a lab test, and Health Canada's maximum acceptable concentration is 45 mg/L (10 mg/L as nitrate-nitrogen). A neighbour's well result cannot be relied on for your well.

Existing-use rights and priority

Existing non-domestic groundwater users had to apply for a water licence on or before March 1, 2022 to keep a priority date based on when they began using the water. Those who missed that date must apply as new applicants, and the application date sets their priority.

Priority works on a first in time, first in right basis. That matters in dry periods, because an earlier priority date can decide whose use is protected. If you are buying land where irrigation or business use depends on groundwater, ask whether the seller applied by the deadline.

If you are not sure whether a past or current use counts as domestic or non-domestic, the answer depends on how the water is actually used. A lawyer can help you read the licence records and your own use before you commit to buying.

What happens to a licence when land is sold

Rights under a licence that is appurtenant to land pass with a conveyance or other disposition of that land. The owner must give written notice of the conveyance to the comptroller or a water manager before completing the disposition.

A licence's rights and obligations, including water rental payments, are tied to the appurtenant land on the Land Title, so a buyer takes on the licence and its rentals. This means you should review the licence, not just the property.

Because the licence goes with the land, it is worth treating it like any other part of the purchase. Check what the licence allows, compare that to what you plan to do with the property, and make sure the seller's written notice fits into the closing timeline.

• Buyers: ask for a copy of any licence and proof that rentals are current
• Sellers: give the required written notice before completing the sale
• Both: ask your lawyer to build the licence into the contract and closing steps

What to do next

Water questions are easier to sort out before closing than after. Use the list below as a starting point and adjust it to your property.

• Identify every water source on the property: well, creek, spring or other
• Confirm whether your use is domestic or non-domestic
• Ask whether a licence exists and whether an application was made by March 1, 2022
• Check that water rentals are paid and the licence details match your plans
• Test the well water through a lab, and do not rely on a neighbour's result
• Make sure written notice of the conveyance is given before closing
• Speak with a lawyer if use of water is central to why you are buying

Frequently asked questions