How do water rights transfer?

In California, water rights transfers are executed through the state’s prior appropriation system. This system dictates that the original water right holder has the right to transfer their right to a new holder. This is done by filing a ‘change petition’ with the state’s Department of Water Resources. Under the prior appropriation system, the transferor (person transferring the water right) is required to provide the transferee (the recipient of the water right) with an estimated amount of amount of water that the transferee can expect to withdraw, as well as an estimate of the corresponding cost for the water, if applicable. In order for the transfer to be approved, both the transferor and transferee need to agree on the terms and conditions of the transfer agreement. Additionally, the transfer must be processed and approved by the state prior to the transfer taking effect. Once the transfer has been approved and the agreement has been finalized, the transferee must file a Change Application Form with the Department of Water Resources to officially register the water right to the transferee. This form must include the amount of water that is being transferred, as well as the terms and conditions of the transfer. Once the transfer is registered, the transferee is then responsible for managing and using the water right in accordance with its terms and conditions.

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