ABSTRACT
This chapter describes the three forms of allocation, with the primary emphasis on administrative allocation through water licensing. The three forms of allocation are customary allocation, judicial allocation and administrative allocation. The first generation of water allocation legislation had some primary objectives: the assembly of accurate hydrological data to facilitate project planning and allocation, and the creation of a relatively secure system of public and private entitlements. In New South Wales, Australia, the Water Management Act 2000 converted existing licences issued under the Water Act 1912 into new licences. Water users in small areas may agree among themselves on how available water will be shared among users during a drought. Law cannot make rain, but it can help mitigate the adverse impacts of drought in two fundamental ways. Most countries vulnerable to drought, water is allocated by customary practice, judicial decisions or the issuance of water use licences by a state administrative agency.
