Buying water rights is done in a couple of different ways. When in states where the riparian doctrine is followed, you can ultimately own water rights just by owning a property near the water in question. If a stream flows past your farm, you’re entitled to use it as long as your use doesn’t negatively impact other users in the area. However, if you live somewhere that is regulated by the prior appropriations doctrine, buying land doesn’t mean that you have access to or ownership of any water rights. They often must be purchased separately, because in places where water is scarce the prior appropriations doctrine was created to allow people to claim water on a first come, first serve basis.
Buying water rights in this situation requires you to take the time to find out who owns the rights to the water in that specific area as well as whether they are selling or not. You might be interested in buying, but some people aren’t interested in selling at times. Even if you own a property on a stream or creek bed, someone else can still hold the water rights, keeping you from using the water for any reason. A water right is a legal piece of property, and in places where water is scarce it can be the most priceless property that one can have.
Buying water rights is also further complicated by the fact that it’s hard to find people who are selling. Some states allow the use of water banks to moderate this process, but there is no real structure in place for buying water rights, which can prove to make it difficult to figure out. You need to determine which types of water rights you need, as well as what doctrine governs your area in order to determine how you will get the water rights that you deserve.
Buying water rights, once you have located a seller, is not too difficult. All that you need to do is to take the time to have the proper paperwork, research, and mapping done so that your accessibility and intended use is legally documented with your sales contract. Then, much like buying a home, once all the paperwork has been processed you simply sign the document and become an owner of water rights. Once you own them, you can sell them whenever you wish, and use them with reasonable or beneficial use.
Tags: buying water rights, water rights