Water Supplies (Exceptional Shortage Orders) Act 1934

6 Compensation

(1) Compensation in respect of the following matters, that is to say,—

(a) the taking of water from a source under the authority of an order, except in so far as the water is taken under the authority of an order which authorises the taking thereof for an indefinite period;

(b) the taking, under the authority of an order, of water from a source otherwise than in accordance with a restriction which has been suspended or modified by the order;

(c) the entry upon or occupation or user of land under the authority of an order made under section two of this Act;

shall be made by the undertakers in relation to whom the order is made to the owners and occupiers of, and all other parties interested in, the source or land, as the case may be, or injuriously affected by the taking of the water, or by the entry upon or occupation or use of the land, as the case may be, for damage sustained by them by reason of the matters aforesaid.

(2) Compensation shall be made by the undertakers in relation to whom an order is made prohibiting, or imposing a limitation on, the taking of water from a source, to the persons to whom the prohibition or limitation applies, for damage sustained by them by reason of the prohibition or limitation.

(3) In assessing compensation to be made under paragraph (a) or paragraph (b) of subsection (1), or under subsection (2), of this section, the arbitrator may, if he thinks fit, have regard to the amount of water which, on an equitable apportionment of the water available from the source between the claimant, the undertakers and other persons taking water from the source, might fairly be apportioned to the claimant.

(4) Compensation shall be made by the undertakers in relation to whom an order is made suspending or modifying an obligation as respects the taking of water from a source, or as respects the discharge of compensation water, to persons who but for the order would have been entitled to institute proceedings in respect of a failure to comply with the obligation, for damage sustained by them by reason of water being taken without compliance with the obligation, or of compensation water not being discharged, or being discharged otherwise than in accordance with the obligation.

In assessing compensation to be made under this subsection the arbitrator may, if he thinks fit, have regard to the amount of water which, under the conditions existing by reason of the shortage of rain, would have been available to the claimant during the period during which the deficiency of supplies of water has continued, if the undertaking in relation to which the obligation was imposed had never been carried out.