Negative impacts of bulk water extraction

Find out about addressing negative impacts of bulk water extraction in an application under the benefit to New Zealand test.

Negative impacts on water quality or sustainability is a factor for assessing the benefit of overseas investments in sensitive land under section 17(3) of the Overseas Investment Amendment Act 2021.

Overseas Investment Amendment Act 2021, section 17(3)

This factor is relevant if the investment will involve the extraction of water for bottling, or other extraction of water in bulk for human consumption.

Where this factor applies, applicants should provide expert reports evaluating the likely impacts of the investment on water quality or sustainability.

Any negative impact on water quality or sustainability will be deducted from the overall benefit of the investment to New Zealand.

Addressing this factor

If the investment involves the extraction of water for bottling, or other extraction of water in bulk for human consumption, an applicant should provide the following information:

  • Description: Details of the proposed water extraction, including locations and volumes.
  • Current state: The quality of the water now and any sustainability concerns. Include information about any existing measures to protect water sources.
  • Method: How the water will be extracted and what measures will be implemented to mitigate any potential negative impacts on water quality or sustainability.
  • Assessment: The extent to which any negative impacts on water quality or sustainability are likely to occur. Claims should refer to expert reports. 
  • Expenditure: The capital expenditure (if any) required to implement mitigation measures.
  • Timeframe: When any mitigation measures are likely to be in place and the timeframe within which any negative impacts are likely to occur.
  • Uncertainties: Anything that may prevent mitigation measures from being implemented (for example, funding constraints) or that may result in negative impacts being different to those forecast.

Conditions of consent

Where this factor applies, applicants may be required to implement mechanisms to mitigate any negative impacts on water quality or sustainability as a condition of consent.