Private Water Supply Agreements
Unless a landowner is drilling a borehole to service their own property and adjoining land, it is likely that water agreements in respect of a private supply relate to an existing service provided to adjoining land where the mutual rights of obligations are not documented. These agreements are important for a number of reasons:
If a written agreement is not in place the landowner is at risk:
- Without any written agreement, neither party knows the exact terms on which the water is supplied. Therefore, if the adjoining landowner fails to, for instance, pay the correct sum for the water, it is difficult to argue what sum had been agreed.
- A landowner is open to claims for damage suffered by the adjoining landowner receiving the supply should the supply of water become contaminated. If there is a written agreement in place, the adjoining landowner can be required to confirm that that person will not make a claim in respect of loss suffered from a poor quality of supply.
- Section 80 of the Water Industry Act allows a local authority to oblige a landowner to 'upgrade' a residential supply which has become unsafe at the landowner's expense.
A written agreement also confirms the terms on which the supply can be severed by the landowner supplying the water. Legislation prevents the disconnection of a water supply to a residential property (unless a free connection to mains water supply is provided in compensation). However, a written agreement can override this statutory provision.
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