Category 2 water board obligations

Water authorities are established under the Water Act 2000 to carry out a range of local water activities.

They are classified as either Category 1 or Category 2. Category 1 water authorities operate on a much larger scale than Category 2 water authorities, which may only serve a few landholders.

This information will help Category 2 authorities meet their obligations under the Water Act, the Financial Accountability Act 2009, the Financial and Performance Management Standard 2019 and the Water Supply (Safety and Reliability) Act 2008.

Authorities should also refer to other sections of this guide for information about the other requirements they must meet as service providers.

Board appointments

When nominating board directors, Category 2 water authorities must supply the names of suitable candidates to the Minister for Water at least 6 months before the end of a director's term or within 3 months after a director's office becomes vacant.

This requirement came into effect in May 2019 to ensure boards have the appropriate skills and gender balance.

Public interest disclosures

Category 2 water authorities should follow the procedure for managing public interest disclosures to comply with provisions of the Public Interest Disclosure Act 2010.

Dissolution or conversion of boards

Boards of water authorities have discretion as to how their scheme operates. If they (or the ratepayers in their area) aren't satisfied that the authority's benefits justify its costs, they may seek to convert to an alternative institutional structure:

  • Cooperative – autonomous, democratic association of persons who voluntarily join together and contribute capital to meet the needs of the cooperative.
  • Corporation/company – a body corporate and separate legal entity from its shareholders that operates under federal corporation law and its own constitution.
  • Trust – a relationship where a trustee (an individual or a company) carries on business for the benefit of other people (the beneficiaries).
  • Closed water activity agreement (CWAA) – a written agreement entered into by all relevant registered owners of the land in the authority area about carrying out the water activities for the land.
  • Local government – a written agreement entered into by the local government and water authority to transfer to the local government all or part of the authority's functions.

Before deciding on dissolution or conversion, consider arrangements for the continuation of water services, including how assets will be transferred and managed.

Consult with ratepayers and local government bodies, and seek independent financial and legal advice on the implications of any new arrangements.

The Queensland Government, through the Department of Regional Development, Manufacturing and Water, will work closely with water authorities and local governments to manage the transfer or conversion to alternative arrangements.

Contact us

For more information about dissolving or converting, write to:

Department of Regional Development, Manufacturing and Water
Strategic Coordination and Economics
GPO Box 2247

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