What this due-diligence check covers
Water law varies by state and basin. Rights may be permit-based, appurtenant, shared, adjudicated, limited by priority or subject to district rules.
A physical well, pond, ditch or stream is not proof of a transferable legal right.
Why it matters before closing
Water rights can determine agricultural, residential and commercial feasibility and may be among the parcel’s most valuable assets.
What to verify
- Identify every proposed source and use.
- Obtain permits, certificates, shares and well records.
- Confirm transfer, priority and current good standing.
- Check drought, pumping and district restrictions.
Red flags that deserve follow-up
- Seller describes “water rights” without documents.
- Irrigation share not included in contract.
- Well exists but is unregistered or shared informally.
- Right limited to a different place or use.
Evidence to keep in the parcel file
- Water-right certificate or permit
- Well and pumping records
- Ditch or company shares
- Agency or legal confirmation
Questions to ask before the deadline
- What source and legal right support the intended use?
- Does the right transfer with the land?
- What priority or pumping limits apply?
- Are fees or assessments current?
- Is the well or diversion compliant?