ABSTRACT
This chapter focuses on the New Zealand context of water allocation. It focuses on the enactment of the Resource Management Act 1991 and how water was meant to be allocated under the Act. It states that while there was meant to be a hierarchical structure for water allocation under the Act, this did not happen in practice. In fact, there was a gap in water allocation policy in the form of a National Policy Statement for two decades. During this time, regional councils were still meant to perform the function of preparing rules and policy for water allocation without that national guidance. What has happened during this time is that the statutory interpretation of water allocation rules is under the “first in, first served” principle. The application of this principle serves only to exacerbate problems and create a “gold rush” effect as applicants for scarce water rush to apply for the last volumes of water available in certain catchments.
