Overview
As communities grow, so does the demand for water. One way local governments help ensure that water supplies and infrastructure keep pace with new development is through water exactions.
A water exaction is a requirement imposed as part of the land use approval process that requires a developer to contribute toward meeting the water needs created by a proposed development. The purpose is to ensure that new growth does not place an unreasonable burden on existing water systems or reduce the level of service provided to current residents.
Water exactions can take several forms depending on the needs of the community and the legal authority of the local government. Common examples include:
- Dedication of water rights or water shares.
- Construction or funding of water infrastructure.
- Dedication of land for water facilities.
- Contributions toward system improvements, such as storage tanks, wells, or treatment facilities.
- Participation in water conservation or water management programs when authorized by law.
Water exactions are similar in concept to impact fees because both require new development to help pay for the public facilities needed to serve additional growth. However, unlike impact fees, water exactions often involve the dedication of property interests, water rights, or other improvements as conditions of development approval.
Since water exactions require developers to contribute resources as part of the approval process, they must be carefully crafted to comply with constitutional and statutory requirements. Local governments must be able to demonstrate that the exaction is reasonably related to the impacts created by the proposed development and is not excessive or disproportionate.
When implemented appropriately, water exactions help ensure that communities can continue to grow while maintaining reliable water service, protecting existing water users, and supporting the long-term sustainability of local water resources.
Content Contributors: Jones and DeMille Engineering, Inc, Hansen Planning Group, LLC / Rural Community Consultants
Special Note: This material was developed by civiclinQ for the Land Use Academy of Utah (LUAU). Funding for the development of this material was provided by through the Land Use Training Fund, which is administered by the Office of the Property Rights Ombudsman , utilizing a portion of the 1% surcharge on all building permits in the State of Utah.
The role of this organization in administering funding is primarily administrative and should not be viewed as legal advice. Always consult your legal representative when addressing land use activities.
Use the ‘Materials’ tab above to view related course materials, including printable pass-along card and PDF version of this online course.
