Part I: Understanding Oregon’s Water Rights Basics: A Guide for Property Buyers

Intro and History

The phrase “water is life” holds more weight than just being a fundamental truth about our human biological needs. In the realm of real estate, especially in the state of Oregon, the importance of water rights can’t be overstated. With its diverse terrain, from dense forests to semi-arid scrublands, water availability and its legal management become critical factors when purchasing a property.

Understanding Water Rights in Oregon

Water rights refer to the legal right for a property owner to use water from a body of water adjacent to or under their land. In Oregon, these rights extend to all forms of water—surface, groundwater, and stored water. These rights are particularly pertinent due to the state’s diverse geographical and climatic conditions, making the access to and control over water resources crucial.

Historically, Oregon’s water rights laws were established during the late 19th and early 20th centuries. These laws came into being to manage disputes between miners, farmers, ranchers, and others vying for limited water resources, especially in the arid regions of Eastern Oregon.

Oregon’s Doctrine of Prior Appropriation

At the heart of Oregon’s water rights law is the Doctrine of Prior Appropriation, often summed up by the phrase “first in time, first in right”. This means that the person who first put the water to beneficial use holds senior rights over those who come later. It is vital to note that Oregon law views water as a public resource, not private property. The water rights associated with your land simply grant you the right to use a specific amount of water in a certain way, but the water itself remains publicly owned.

Irrigation Districts in Oregon

In Oregon, Irrigation Districts play a significant role in the management and allocation of water resources. An Irrigation District is a cooperative, self-governing public corporation set up to distribute water for irrigation in a specific region. When you buy a property within an Irrigation District, you typically become a member of that district. The district, in turn, holds the water rights and manages the distribution of water to its members. Before purchasing a property, it is crucial to know whether it falls under an Irrigation District, and understand the district’s rules and charges.

Types of Water Rights in Oregon

In Oregon, water rights can be divided into three broad categories:

  1. Surface Water Rights: This applies to bodies of water such as lakes, rivers, and streams. In general, if you have a piece of land adjacent to or encompassing part of a body of water, you may have surface water rights.
  2. Ground Water Rights: This applies to water found beneath the ground’s surface. Groundwater rights are essential for landowners who rely on wells for their water supply.
  3. Stored Water Rights: This applies to water that has been captured and stored in a reservoir. Stored water rights are especially relevant for agriculture or irrigation purposes.

Water Rights Transfers

Oregon law allows for the transfer of water rights from one property to another, or from one type of use to another, given that it won’t harm other water users or the public interest. There are also geographical limitations to the transfer process. This process, known as a transfer application, involves technical analysis and public notice, and it may require you to hire a water rights specialist.

For potential property buyers, understanding the water rights that come with a property or can be transferred to it is essential. Lack of knowledge about water rights can lead to water access issues, legal disputes, and a decrease in property value.

It is essential to familiarize oneself with the basics of Oregon’s water rights before venturing into property purchase. In the upcoming articles, we will explore the importance of these rights for property buyers, delve into the intricacies of irrigation rights, and provide some practical tips based on real-life case studies. Stay tuned!