Water Resources Commission v Graham

The Water Resources Commission (the Commission) appealed to the New South Wales Court of Appeal against a decision of the Land and Environment Court. The dispute concerned the Commission's refusal to grant a water licence to Mr Graham for the irrigation of his property. Mr Graham had sought the licence to abstract water from the Lachlan River for the purpose of irrigating his land, which was situated within a regulated river water source.

The primary legal issue before the Court of Appeal was whether the Commission had acted unlawfully in refusing to grant the water licence. Specifically, the court had to determine if the Commission had properly considered all relevant factors under the relevant legislation, the *Water Act 1912* (NSW), and whether its decision was affected by an error of law. This involved examining the scope of the Commission's discretion in granting or refusing licences and the procedural fairness owed to applicants.

The Court of Appeal found that the Commission had failed to properly consider the evidence and submissions put forward by Mr Graham regarding the potential impact of his proposed water usage on the river system and other users. The court held that the Commission had fettered its discretion by adopting a rigid policy that effectively precluded the grant of licences in certain circumstances, without adequately assessing the specific merits of Mr Graham's application. The principles of administrative law, including the requirement for a decision-maker to exercise their discretion according to law and to consider all relevant material, were central to the court's reasoning. The appeal was allowed, and the matter was remitted to the Land and Environment Court for redetermination.