      
The Israeli Water Law does
not recognize private ownership of water resources. All water resources are
public (not state) property and any use of water, whether extraction, supply
and/or consumption, requires a use permit issued by the Director of the
Governmental Authority for Water and Sewerage.
The principal water use permit is the production license. It links between
producer, the supplier and the consumer. The production license states the
amount of water that a (named) producer may extract from a specified source
(surface or ground) and names the consumer(s) and the quantities each of them
may receive from the producer and source. The production license creates a
direct connection between the source and the end-user. There is therefore no
market for the buying or selling of water. A producer may supply a determined
quantity of water only to the consumer listed in the production license not to
the highest bidder. Only urban domestic water may be supplied without limitation
to the domestic consumers. The control over urban domestic water usage is done
through a banded tariff structure.
A water use permit may only be issued for the purposes specifically listed in
the Water Law, i.e. for domestic, agricultural, industrial, commercial, public
services and ecological uses.
The Water Law does not determine a priority for existing users over new ones
although in practice the Director of the Governmental Authority will most likely
not grant a license for a new allocation if it prejudices an existing use of the
water, unless there is a pertinent justification for such use and except when
considerations of national economy so dictate. It should also be noted that the
Water Law does not prioritize between the permitted uses. A prioritization will
be determined only in case of a
water shortage. In case of agricultural allocations, the Director will issue
use permits on the basis of rules promulgated by the Minister of Agriculture.
While water permits are formally issued on an annual basis each time for the
current year, the Director of the Governmental Authority is likely to re-issue
the permit in subsequent years if there are no changes in the purported use of
the water. However, in cases of water shortage, the Director of the Governmental
Authority has the right to reduce allocations, even after issuance of the water
use permits.
The holder of the water use permit cannot sell or transfer his water use right
and any unused water is to be returned to the State for reallocation The holder
of the right to use the water may also not change the location of the use. It is
a use for a particular purpose at a specific location. Similarly, the change in
ownership over a land plot, or a change in the purported use (for example from
agricultural to industrial uses) does not necessarily guarantee the retention of
the water allocation. In all of these instances a new application for a water
allotment will have to be filed with the Director of the Governmental Authority
who will then treat the application in light of water availability and competing
uses.
The water use right is also not a right in rem attached to the land or as an
easement as the right to water is commonly known under the rules of common law.
In the Israeli system, there is no legal connection between land and water, even
if the water passes through or is abstracted from under the land. Water
resources are publicly owned regardless of their location.
Formally, the owner of a land parcel that has been receiving a water allocation
is not guaranteed that the allocation will continue interminably. Once the use
of the land does not require water, the right to a water allotment is
terminated.
The water consumer does not have a right to receive water from a specific water
source. Pursuant to the Water Law, the Director of the Governmental Authority
determines the water source from which each of the consumers is served and the
consumer's right consists of the entitlement to an allotment of a specific
quantity of water at a quality which is suitable for their purported use.
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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