Builders

Builders may need water shares or water access licences when their construction activities involve using or extracting water from groundwater sources, eg dewatering or pumping groundwater from a site, because water in New South Wales is a regulated resource, even if it’s underground. Here’s why this applies:

 

1. Groundwater is a public resource

  • In NSW, all water—surface and groundwater—is owned by the Crown (the government), not by landholders or developers.
  • Even if water is found beneath private land, you must have a licence or approval to extract it.

2. Dewatering counts as water extraction

  • Dewatering is the process of removing groundwater from an excavation site (e.g., for basements, foundations, tunnels).
  • Under NSW law, this is considered “taking water from a regulated water source”, and requires a water access licence or exemption.

3. To avoid illegal extraction

  • If builders pump water without a proper share or licence, it’s classified as unauthorised water take, which can result in:
  • Fines
  • Stop-work orders
  • Legal action

4. To protect the water table and nearby users

Groundwater extraction, even for construction, can:

  • Lower the water table
  • Affect nearby wells, ecosystems, or buildings
  • Requiring water shares helps the government monitor and limit impacts on neighbours and the environment.

5. To ensure sustainable water management

  • Dewatering often involves large volumes of water.
  • Water shares or licences help authorities track and control usage across all sectors (construction, agriculture, residential) to ensure the long-term health of the water system.

Special Notes on Dewatering in Sydney:

In some cases, temporary approvals can be granted for construction-related dewatering instead of permanent water shares.

  • Temporary approvals can be granted for construction-related dewatering  from WaterNSW in a form of Water Supply Works Approval (WSW).
  • Builders need to apply for a 0 Share water access licence (WAL) from Water NSW.
  • A Water Access Licence (WAL) with a sufficient share component is required to account for full water take prior to commencement.
  • Manage discharge water quality in accordance with approved dewatering management plan
  • Comply with local council DA consent condition and EPA guidelines.

In Summary:

Builders in Sydney need water shares or licences (especially when dewatering) because:

  • All water is publicly owned and regulated
  • Dewatering is legally considered water extraction
  • Approvals ensure protection of the environment and surrounding users
  • Licences help monitor and manage the total water usage across the state