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Last update: 2008-01-04

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Water Legislation

Principles of Water Legislation

Israel’s water management legislation is guided by the following principles:

  • That water resources are public property and that water resources may not be privately owned;

  • That every person has the right to a water allocation for recognized purposes;

  • That due to the scarcity of available water resources a prioritization, in quantity as well as in quality, has to be instituted;

  • That the allocation of water resources will be effected centrally to ensure an optimal use of the limited water resources;

  • That the consumers, through their representatives, have a right to provide their input to the determination of Israel’s national water policy and on the rules relating to allocations, priorities and tariffs;

  • That the government has the right and obligation to take action for the prevention the pollution of water resources.

The principal laws that regulate the management of Israel’s water resources, water supply and quality are:


The Water Law, 5719-1959

The Water Law regulates the management of Israel’s water resources, their preservation and their allocation for use. Enacted in 1959, and most recently amended in May 2006, the Water Law creates an administratively regulated water resources management. Pursuant to the Law all water resources in Israel are owned by the public (not by the state) and there are no private water rights or resources.

"The water resources of the State are public property; they are subject to the control of the State and are destined for the requirements of its inhabitants and for the development of the country."

(Article 1 of the Water Law)

Neither private individuals nor the State own water resources. All water resources are public property. The State, through the Governmental Authority for Water and Sewerage (the “Governmental Authority”) controls, manages and allocates the water resources as a trustee for the benefit of its inhabitants and for the development of the land. Water may be used only by permit issued by the Director of the Governmental Authority and for the water use purposes specifically listed in the Law (domestic, agricultural, industrial uses etc.) The right to use water terminates once the specific purpose of the use ceases to exist. The water entitlement is not an eternal one and is renewed annually.

The Law entrusts the Governmental Authority and its Director with the obligation, and ensuing powers, to preserve the country’s water resources, in terms of quantity and quality, to regulate the production, supply and consumption of water, to determine priorities in case of shortage, to enforce environmental standards and prevent pollution of water resources, to design and implement water supply schemes, to regulate the payment for water, etc.

The main feature of Israel’s water resources management is the fact that they are subject to an administrative regulation. Since there are no private water rights, water is allocated for use by the Director. The allocation of water is done by administrative decision. All water uses (production, supply, consumption, discharge and recharge) require an annual entitlement permit. In case of water shortage, the Law allows the establishment of a special water supply regime that controls the allocation of water.

Israel’s water supply system is operated by public and private water enterprises. A Government formed national water company – Mekorot – is responsible for bulk water supply in Israel, and operates the national water carrier that transfers water from Lake Tiberias (Sea of Galilee).

In order to facilitate the development of water supply systems, the Law introduces special planning procedures that take into account the unique character and needs of water infrastructure development.

Payment for water may either be in the form of a price negotiated between supplier and consumer or a tariff determined by the Board of the Governmental Authority. In addition to the price or tariff the Board may impose a differential (source based) extraction levy. The levy serves as a principal tool for regulating the use of different resources for water supply.


The Water Measurement Law, 5715 – 1955

The Law stipulates that all paid-for water must be measured. Each consumer is required to have his own, separate, measuring device thereby ensuring that not only the supply is measured but also how much is consumed by each individual consumer. The Director of the Governmental Authority may order a self-supplying consumer to measure the water extracted by him.

By initiating, in 1955, the obligation to measure each water supply, the Government implemented a successful control mechanism over the country’s water resources. The information derived on water supplied to and consumed by each and every consumer, allows the Director of the Governmental Authority to manage both the preservation of the water resources as well as to control their use. The 1955 Water Measurement Law was a first step into the creation of an administratively regulated water sector (See chapters on Water Rights and Water Uses).


The Water Drillings (Control) Law, 5715-1955

The Water Drillings (Control) Law, 5715-1955 regulates the drilling and installation of wells and stipulates that a permit issued by the Director of the Governmental Authority is required for these. Since ownership of the land does not entail the right to drill a borehole or to extract groundwater, a drilling permit is required also for the drilling of a well by a landowner for his own use.

An applicant for a drilling permit has to specify the drilling location, the quantity of water which the applicant wishes to draw from the well, if successful, and whether the proposed well is a replacement for an existing well or a new well.

The Law connects the drilling permit to the ultimate purpose of extracting water. The Law provides that one of the criteria to be employed by the Director of the Governmental Authority in considering a drilling permit application will be whether he will, ultimately, issue a production permit for the well. The Director of the Governmental Authority may impose conditions upon the permit with respect to the diameter of the well, its depth or the amount of water to be drawn from the well.

The permit holder is required to commence drilling within 3 months from the date of the permit and is required to conduct a trial drawing from the well within one year from the date of the permit.

The permit holder is obliged to advise the Director of the Governmental Authority on the results of any trial extractions and may commence regular extraction from the well only if he holds a valid Production Permit and after a measuring device has been installed on the well.

The Law is an integral component of Israel’s water resources management policy. It strengthens the control over water extraction by extending the licensing requirements also to the pre-extraction phases thereby strengthening the control over the use of the country’s scarce water resources.


The Streams and Springs Authorities Law, 5725-1965

The Law regulates the creation and operation of authorities for the management of streams and springs. Complimentary to the Water Law that created a framework for the nation-wide regulation of Israel’s water resources, and the Drainage and Flood Control Law that regulates surface water drainage systems, the Stream and Springs Authorities Law decentralizes certain of the water resources management functions by allowing the assignment of some of these to Authorities that are granted jurisdiction over the drainage basin of a stream or other water source. The Authorities are composed of representatives of government, local municipalities, local water users and public representatives. The Authorities are entitled to regulate and/or operate streams (or part thereof) and springs with the view of maintaining a suitable water level. They are entrusted with the planning and demarcation of streams, with the maintenance thereof and the removal of any health hazards affecting the stream as well as the distribution of water from the stream to interested parties.

The Law has to be read in conjunction with the Drainage and Flood Control Law since a Drainage Board may be entrusted with the functions of a Stream Authority as well. By combining the two functions, all relevant aspects of river basin management are regulated by a single body.


The Drainage and Flood Control Law, 5718-1957

The Law regulates flood control and drainage activities for the protection of Israel’s land and surface water resources. The Law stipulates that surface waters, including drainage waters may not be diverted from or to a waterway without a permit issued by the Director of the Governmental Authority.

The Law calls for the formation of a National Drainage Board that, together with regional, basin based, drainage authorities, regulates flood and drainage flows. The National Drainage Board, comprises 20 members, 12 out of which are non-governmental ones, representing the agricultural sector. The National Board determines drainage policy and is in charge of the review and approval of local drainage plans.

The local drainage authorities are in charge of drainage regulation in their area of operation and are required, where need arises, to plan and construct drainage systems. The construction of a drainage system requires approval by the National Drainage Board.


The Water and Sewerage Corporations Law, 5761 - 2001

Prior to the enactment of the Water and Sewerage Corporations Law, 5761 – 2001 the municipalities, in accordance with their statutory obligations pursuant to the Municipalities Ordinance supplied water and sewerage services within their municipal boundaries. The Law provides for the gradual transfer of water and sewerage services from the municipalities to corporate entities.

The 2001 Law signaled a first step in the transformation of the administratively managed water sector to a more commercially oriented one. The objectives of the Law include, inter alia, the assurance of a high quality service (availability and quality) at affordable prices to all customers, the ensuring that income from the supply of the water and sewerage services will finance infrastructure investments, and the enabling of private sector investments for infrastructure, including through public-private partnerships (PPP’s).

The process is initially a voluntary one, i.e. the municipalities may transfer the service provision to public service entities (the “Water and Sewerage Corporations”) and at a later stage it will become compulsory that the municipalities cede the service provision of water and sewerage services to Water and Sewerage Corporations. It is envisaged that by 2010 all municipal water and sewerage services will be transferred to Water and Sewerage Corporations. The Corporations may serve the area of one or more municipality, although in the latter case all municipalities in the service coverage area have to agree thereto.

The Corporations are subject to obligations in terms of supply coverage and level of service and are required to obtain a permit for their operation from the Ministry of the Interior. The tariffs and service charges for each of the Corporations are subject to review and approval by the Public Utility Commission for the Water and Sewerage Corporations.

The Corporations may be owned either by the municipality (ies) in whose service area they operate or by private investors.

The Government may intervene in the operation of the Corporation, including transferring the provision of the services to another entity in case of failure in service provision, including in case of bankruptcy.


Public Health Ordinance, 1940

The sanitary regulation of drinking water is entrusted to the Minister of Health pursuant to the 1940 Public Health Ordinance and is not affected by the 2006 reform in the management of the water sector . The Ordinance empowers the Minister of Health to issue regulations inter alia on the sanitary quality of drinking water, on sanitary conditions of water resources supplying drinking water and on the sanitary conditions of the design, construction and operation of drinking water facilities.

Drinking water may not be supplied if it does not meet the sanitary conditions as established by the Minister. The Ordinance further requires that drinking water suppliers regularly control the sanitary quality of the water through recognized laboratories and stipulates that public health officials have the authority to ban the use of a water resource for drinking purposes if it does not meet the established sanitary standards.

The regulation of drinking water sources compliments the overall regulation of the water sector by the Governmental Authority. Thus for example, the producer of drinking water needs a production license from the Director of the Governmental Authority as well as a license from the Ministry of Health for the supply of the water for drinking purposes.

Pursuant to its authority, the Minister of Health has issued detailed standards on the sanitary quality of drinking water as well as regulations on the protection of resources that serve for the extraction of drinking water.


The description of Israel’s water legislation is for informational purposes only and does not constitute a legally binding version or interpretation thereof.

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