Disputes over water rights have long been a key driver of the legal services industry on New Zealand's South Island, but now the issue has reached crisis point. It's a question of more people trying to secure less supply, according to Buddle Findlay partner Rachel Dunningham, who spoke to ALB for the upcoming South Island Report feature.

“Much of the available water has been allocated, or is nearly fully allocated – in which case there is a ‘gold rush’ situation where people are anxious to secure an allocation before the supply ends,” she said. “Secondly, the Canterbury Regional Council has made the decision that there has been an over-allocation of water in some areas and is looking to cut back, which raises another set of issues.”

There is increased demand for the precious water, especially in the area around Canterbury, where farmers are inclined to forgo the traditional sheep farming for the more profitable – and water intensive – dairy farming or wine making.

Dunningham is currently advising the Central Plains on a plan to take the remaining allocable water from the Waimakariri and Rakaia rivers for use in irrigation. Although there are still a number of key issues which remain to be resolved by the courts, including the establishment of priority between competing applicants for water rights and how such priority is determined.

ALB's South Island report will appear in issue 7.12.