Trade water abstraction rights

If you want an abstraction licence but are unable to get one because there is no water available in your area, you may be able to enter into an agreement with an existing licence holder. You can agree for them to give you part or all of their water abstraction right permanently or temporarily. This is called the trading of water abstraction rights.

If you already have an abstraction licence, you can agree to give the rights to some or all of that water to someone else.

Types of trade

There are 4 different trading scenarios. These are:

• whole, permanent – the whole of the trader’s abstraction right is transferred to the recipient on a permanent basis
• whole, temporary – the whole of the trader’s abstraction right is transferred to the recipient on a temporary basis
• part, permanent – part of the trader’s abstraction right is transferred to the recipient on a permanent basis
• part, temporary – part of the trader’s abstraction right is transferred to the recipient on a temporary basis

Find a trading partner

You need to find your own trading partner. The Environment Agency does not act as a broker or negotiate the trading of licences.

You can contact the Environment Agency to get abstraction licence details. They will give you information from the water resources public register, for free.

Check your local abstraction licensing strategy to find out what the water availability status is in your catchment and information on any local constraints on water abstraction rights trades. For example, if trading water rights would damage the environment.

The Environment Agency takes into account how much water is returned to the environment following abstraction and the amounts of water used recently by the trader when deciding how much water can be traded.

You can use the Environment Agency’s enhanced (paid for) pre-application advice service to check if they are likely to agree your proposed trade.

How to apply to trade water abstraction rights

When you trade water abstraction rights the parties involved usually need to apply to the Environment Agency for a new licence and to change or cancel (revoke) any existing licence.

How much it costs

Check water resources licences: when and how you are charged to find out what application charges you need to pay.

Contact the Environment Agency