How do water rights transfer?

Water rights in Hawaii are tied to the use of land and are not legally transferable. Under the Hawaiian water law, a landowner has a right to use water for the purposes of domestic use, agriculture, and irrigation. The owner may also transfer these rights to a third party as long as the water is used for the same purpose for which it was initially intended. The way in which water rights are transferred depend on the type of water rights being transferred. For example, the sale, lease, or transfer of water rights associated with an existing ground source can be handled through public auction. Likewise, surface water rights can be transferred through a public auction or through a state-approved Application for Transfer of Water Rights. In all cases, sufficient information must be provided to demonstrate that the transferor is the legal owner of the water rights and that the transfer of the rights is in accordance with the law. In addition, in most cases, water right transfers must be approved by the Hawaii Department of Land and Natural Resources. The purpose of this approval process is to ensure that water rights are transferred within the limits of the law. Furthermore, the department may impose various water rate and water management requirements. Finally, in some cases, Hawaii law provides that the transfer of water rights may be subject to certain restrictions. For example, a change in the water users or use of water rights may be prohibited or limited by law. Additionally, the transfer of water rights may be restricted depending on the specific type of water source being used. Therefore, it is important to understand the specific water law requirements of Hawaii before attempting to transfer a water right.

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