Has your land been identified for a flow or inundation easement?
Your Property Rights May Be Affected – You May Be Entitled to Compensation
The New South Wales Government’s Reconnecting River Country Program is progressing the establishment of flow and inundation easements across parts of the Murrumbidgee River project area.
The Water Administration Ministerial Corporation (WAMC) is the acquiring authority responsible for securing these easement interests.
Land within the designated project area may be subject to the acquisition of flow and inundation easements. WAMC may seek to acquire a legal interest in affected properties to enable controlled water flow and periodic inundation.
While landowners typically retain ownership, the imposition of an easement can significantly and permanently affect how land is used, its productivity, and its value.
Importantly, an easement cannot simply be imposed. It can only be secured by agreement or through the compulsory acquisition process, and in either case, just compensation must be paid.
Current Stage: Landholder Negotiation Scheme
WAMC is engaging with landholders under the Landholder Negotiation Scheme pursuant to Schedule 9 of the Water Management (General) Regulation 2025.
This is a pre-acquisition phase, but a critical stage in determining both the terms of the easement and the compensation payable.
Under this framework:
- WAMC may issue a written invitation to negotiate for the acquisition of an easement;
- The invitation outlines the proposed acquisition and the circumstances in which compulsory acquisition may follow;
- A person who accepts an invitation to negotiate enters into a negotiation period of 12 months, unless a shorter period is agreed by the parties;
- During this period, landholders may negotiate both the scope of the easement and the compensation offered.
An invitation to negotiate does not commence the compulsory acquisition process and does not trigger statutory rights under the Land Acquisition (Just Terms Compensation) Act 1991.
If Agreement is no Reached
If negotiations do not result in agreement, WAMC may proceed to compulsory acquisition under the Land Acquisition (Just Terms Compensation) Act 1991.
This requires:
- Service of a section 10A commencement letter;
- Service of a section 11 Proposed Acquisition Notice (PAN);
- A minimum 6-month negotiation period following the section 10A notice;
- Compensation determined having regard to section 55 of the Act.
How the Legal Framework Operates in Practice
Stage 1 – Negotiation
- Invitation to negotiate issued;
- 12-month negotiation period (unless otherwise agreed);
- No compulsory acquisition powers exercised.
Stage 2 – Compulsory Acquisition
- Section 10A commencement letter issued;
- Section 11 Proposed Acquisition Notice follows;
- Statutory safeguards apply;
- Compensation rights become enforceable.
Why this Early Stage Matters
The Landholder Negotiation Scheme is often where the commercial parameters of the acquisition are set.
Decisions made at this stage can materially affect:
- The extent of easement rights;
- Future land use restrictions;
- Compensation outcomes.
The Impact on Your Land
A flow or inundation easement may:
- Permit water to flow across or be retained on your land;
- Restrict development or agricultural use;
- Reduce property value;
- Require access for maintenance.
Your Entitlement to Compensation
Compensation may include:
- Market value;
- Severance loss;
- Special value;
- Disturbance losses;
- Relocation disadvantage.
Legal, valuation and expert costs are also recoverable.
How Land Acquisition Lawyers can Assist
We assist by:
- Providing early strategic advice;
- Assessing easement impacts;
- Coordinating expert evidence;
- Negotiating with the acquiring authority;
- Representing you in Court if required.
Speak with our Compulsory Acquisition Specialists
If your land is located within the project area or you have been approached in relation to a proposed easement, we recommend obtaining advice early.
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