Water Rights Process Improvement

Bridal Veil Falls Gary Halvorson Cropped.jpg
Bridal Veil Falls. Photo by Gary Halvorson, Oregon State Archives.

Water Rights Process Improvement Frequently Asked Questions

In 2025, the Oregon Legislature passed legislation enabling OWRD to make water right processes more efficient and transparent. OWRD is also working to standardize and improve department processes. While a subset of these changes was effective January 1, 2026, the remaining provisions (House Bill 3544 and House Bill 3342, 2025) along with a suite of changes recently adopted to administrative rules, are effective April 1, 2026. Visit the 2025-26 Water Rights Rulemaking page for more information on that process.

General Process Changes

Several general process changes have been made to standardize and streamline processes across multiple transactions. Select changes are summarized below.

Standardized application processing flow

Statutes and rules have been updated to standardize the application process for water rights, permanent transfers, and groundwater registration modifications. Figure 1 provides an overview and the new process flow for standard water right permits and Figure 2 for permanent transfers and groundwater registrations.

Figure 1 - Overview and new process flow for standard water right permits

View as a bulleted list

View as a flowchart

Figure 2 - Permanent transfers and groundwater registrations

View as a bulleted list

View as a flowchart

Weekly public notice updates

Public notice will now be made at the initial review and the proposed final order stage. Public notice will of the initial review will only be made if the requirements to continue processing the application are met within the deadline.

For all transfers processes, public notice of an IR and PFO will be made via the Department’s weekly public notice and will initiate the comment period and the protest period, respectively. Public notice will no longer occur once a transfer application has been received and will only occur via newspaper if more than five water rights are found to be injured.

Sign up for OWRD's weekly public notice. This free digital publication lists water right decisions and reviews completed by OWRD, applications received, and public comment opportunities.

Permit applications restricted under ORS 536.415 will be returned

The Department may return applications requesting water: 1) from a source designated as a critical groundwater area under ORS 537.730 (groundwater only), 2) subject to restrictions on allowed groundwater uses by classification under ORS 536.340 (groundwater only), or 3) withdrawn from appropriation under ORS 538 or by rule or order of the Water Resources Commission under ORS 536.410.

View a list of these areas. Applicants should review this list prior to applying for a water right permit.

For groundwater, these provisions do not apply for applications related to the recovery of groundwater under an artificial recharge or aquifer storage and recovery project, or if the application is requesting an exception for a water use not classified in the basin program under ORS 536.295.

Notification to proceed with processing the application after Initial Review

Water right permits: Once an Initial Review is issued, the applicant has 90 days to provide written notification requesting the Department to continue processing the application and pay any remaining fees due. If the applicant does not respond and pay all remaining exam and recording fees or responds that they would not like to continue processing the application, the caseworker will close the file and take no further action on the application.

Transfers: Once an initial review is issued, the applicant has 30 days to provide written notification requesting the Department continue processing the application and provide all remaining information needed to continue processing. If requested within the 30-day time period for responding to the initial review, the applicant may be granted up to 60 extra days if the Department determines that the applicant is making reasonable efforts to provide the remaining information required. If the applicant does not respond with the required information or responds that they would not like to continue processing the application, the caseworker will close the file and take no further action on the application.

Automatic Final Orders

Proposed Final Orders (PFOs) for affected processes automatically become final orders 33 days after the close of the protest period if no protest is received, unless OWRD withdraws the PFO. As of January 1, 2026, this provision applied to a subsection of PFO issued by WRSD. After April 1, this provision will apply to most PFOs issued WRSD. Be sure to read your PFO closely.

Standardized document names

Document names have been standardized across all water right transaction processes for consistency. This does not add new requirements, actions, or processes. “Draft Preliminary Determinations” will be called “Initial Reviews,” and “Preliminary Determinations” will be called “Proposed Final Orders”. These changes went into effect January 1, 2026.

Electronic documentation and communication

Unless requested otherwise by the applicant, the Water Rights Services Division will send all the documents and notifications associated with processing applications by email. Proposed Final Orders (PFOs) will be sent by certified mail and any permits or certificates that may be issued will be sent by standard mail, in addition to being emailed.

Permit Development and Extensions of Time

2025 and 2026 legislation made significant changes to permit extension availability. All non-municipal permits for which a proposed final order is issued on the permit application on or after April 1, 2026, will now have seven years (up from five) to complete construction and beneficially apply water.

After that seven-year period, options for securing an extension are as follows:

Municipal extensions: no changes to the existing extensions allowances

Quasi-municipal: one-time extension up to 20 years

Group domestic and group domestic expanded: one-time extension up to 10 years

All other permits: one-time extension up to seven years, if development was delayed by other local, state or federal permitting processes or appeals related to the project and if application for extension is submitted prior to expiration of a permit or existing extension (effective June 5, 2026). This may be granted in addition to the two-year extension for pending permits below.

For other than municipal, quasi-municipal, and group domestic permits with a PFO issued on the permit application prior to April 1, 2026, an extension of up to two-years may be granted if good cause is shown and all pre-use fish conditions have been met.

Claims of Beneficial Uses and pump tests

Groundwater claims of beneficial use will not be accepted unless the pump test or pump test exemption request for each well has been received, either prior to COBU submission or with the COBU submission. Claims for groundwater permits that have not fulfilled this requirement will be returned.

What you can do to prepare for these changes

Promptly review proposed final orders and any supporting documents as soon as you or your consultant receives them. Final orders resulting from unprotested PFOs cannot be appealed. The protest period is the appropriate time to challenge an OWRD decision.

Read all correspondence from OWRD carefully. As OWRD sends initial reviews, proposed final orders, and notices for bringing protests and standing statement requests into compliance, please provide requested information promptly to keep water right and transfer applicants and contested cases moving forward. Contact OWRD immediately if you have questions.

Sign up for OWRD's weekly public notice. This free digital publication lists water right decisions and reviews completed by OWRD, applications received, and public comment opportunities. Sign up here.

Monitor the Water Rights Information System (WRIS). WRIS shows OWRD-issued documents as well as information about application processing. When a timely protest has been filed, OWRD updates the "Processing History" section of the applications WRIS page.  OWRD aims to update WRIS to reflect the filing of timely protests within seven business days after the close of the protest period. Visit WRIS.

Prepare for electronic communications. Unless requested otherwise, the Department will send documents and notifications associated with processing of applications by email. These emails may come from an automated system: wrd_automated_email@water.oregon.gov. Consider adding this email address to your safe sender list so you do not miss important information about your application.

Check your application filing forms. The application forms have been updated to accommodate processes changes. For applications received on or after April 1, 2026, the updated application forms must be used. Please check the OWRD forms page to ensure you are using the most up to date forms.

Summary of Changes

More information about legislation being implemented can be found on the Oregon Legislative Information System.

House Bill 4004 (2026): permit extensions

House Bill 3342 (2025): water right process improvements

House Bill 3544 (2025): contested case process improvements

Senate Bill 1154 (2025): groundwater quality management

House Bill 3164 (2023): split season instream leasing

House Bill 3103 (2021): character of use transfers for stored water

Summary of rule changes

Review each Oregon Administrative Rule division to see updated rules.

Division 2 - Protests and contested cases 

2025 Legislation: uniform process for water rights transactions and forfeiture including: protests, party status requests, and contested cases; automatic final orders; sending of electronic documents; establishing a default hearing schedules and completion in 180-days; and preference for oral testimony and remote hearings.

Policy/process: uniform process for all applicable contested cases: requires accurate contact information, defaults to electronic service upon referral (with exceptions), clarifies information that must be included (with exceptions); adds option to consolidate or bifurcate hearings prior to referral; limits admissions, interrogatories, hours of staff time for discovery before converting to public records request, establishes deadlines for subpoena, and limits site visits; and identifies items for pre-referral notice to encourage settlement discussions.

Rule clarity/cleanup and consistency with statute: clarifies interface and consistency with APA.

Applicability: apply to some, or all contested cases held by the Department, except for water rights adjudications held under ORS Chapter 539. Due to Or Laws 2025 ch 575, some provisions apply earlier than rule adoption. See rule 690-002-005 and Or Laws 2025, ch 575 for details.

Division 14 - Certified water right examiners and preparation of claims of beneficial use

2025 Legislation: electronic documents (by allowing digital seal and signature of Certified Water Right Examiners (CWREs) for any document they prepare).

Policy/process: requires pump test or pump test exemption request for each well to be submitted before or with claims of beneficial use to align with pump test rules; removes redundant and outdated rule language pertaining to when a transfer application map must be prepared by CWRE; standardizes mapping criteria across transaction types (links to Division 305) while allowing for additional mapping requirements specific to claims.

Applicability: applies to claims of beneficial use, maps, and other documents submitted by CWREs on or after April 1, 2026.

Division 17 – Cancellation of perfected water rights

2025 Legislation: automatic final orders and uniform contested case, party status, and protests (links to Division 2).

Policy/process: clarifies process when forfeiture is raised as part of a transfer protest (links to Division 380); and clarifies the information that must be in Department notices or public affidavits.

Rule cleanup/clarity and consistency with statute: aligns with statute the process for initiating cancellation, statutory exceptions related to “ready/willing/able” and drought, information a watermaster needs for affidavits submitted pursuant to ORS 540.660, and reasons for rebuttals to forfeiture; removes rules-only requirement for Department staff to submit affidavits under ORS 540.631.

Applicability: provisions linked to Division 2 have the same applicability as Division 2. All other rule changes apply to affidavits received and cancellation proceedings initiated on or after April 1, 2026. OWRD will evaluate affidavits received prior to April 1, 2026, under the rules in effect when the affidavits were received.

Division 18 – Allocation of conserved water

2025 Legislation: uniform contested case, party status, protests, and automatic final orders (links to Division 2); protest period changed from 30 days to 45 days; electronic documents including email addresses; replaces newspaper notice with weekly public notice; phased application processing (initial review, PFO); and amending timing of when public comment period occurs.

Policy/process: standardizes mapping criteria across transaction types (links to Division 305) while allowing for additional mapping requirements specific to this transaction type; aligns processes with other transfer processes, including same source criteria for injury; and specifies measurement and reporting requirements.

Rule cleanup/clarity: aligns and reorganizes rules; clarifies processing steps for approval, completion, testing phase, and finalization of a conservation project (note some alignment is necessary for 2025 legislation); and clarifies that if conserved water allocated to the state is necessary to support instream flow purposes it will be converted to an instream water right; otherwise, if not necessary, it reverts to the public for appropriation by the next user in priority.

Applicability: provisions linked to Division 2 have the same applicability as Division 2. All other rule changes apply to applications submitted on or after April 1, 2026.

Division 077 – Instream water rights

2025 Legislation: electronic documents and email addresses; phased application processing; return of applications in withdrawn areas (new water rights); uniform requirements for protest, party status requests, and contested cases, and automatic final orders (links to Division 2); alignment with statute for orders issued without hearing; and standardizes processing steps and document naming for transfers.

Policy/process:

Clarifies that the Department issues instream water rights only within Oregon’s borders

Refines mapping requirements

Updates various definitions and aligns “enlargement” and “injury” with other rules

Repeals forfeiture of instream water rights rules

Clarifies existing rule on when a withdrawal applies to new instream water right applications

Clarifies allowed timelines for administrative holds

Removes requirements to post notice in certain offices

Clarifies which rights can be transferred or leased instream, including storage rights

Instream leases: allows a district to keep written authorization on file; allows copies of contracts for consent from federal government; removes requirement to post lease application notice in watermaster office; clarifies requirements for leasing a storage right; streamlines process for renewals

Precedence of future uses of multipurpose projects: aligns with water right processing steps for efficiency and clarity purposes; changes public hearing to public comment period; and incorporates decision into a proposed final order

Consistency with statute: align/remove new and repealed language; removes estimated annual natural flow (EANF) from consideration of limit for instream transfers, leases, or allocations of conserved water; aligns language and workflows for minimum perennial streamflow conversions; implements 2023 legislation for split season leasing; and clarifies measurement and reporting requirements.

Rule cleanup/clarity: creates consistency for mailing notices with the APA; modifies definitions for consistency across rule divisions, removes unnecessary or unused definitions, and adds missing definitions; update statutory and rule references.

Applicability: provisions linked to Division 2 have the same applicability as Division 2. The provisions related to returning water right applications for sources that are withdrawn from further appropriation apply to new and pending instream water right applications where a PFO has not been issued prior to April 1, 2026, and the source water was closed prior to application submission. All other rule changes are effective April 1 or apply to applications submitted on or after April 1, 2026.

Division 300 - Definitions

2025 Legislation: updates the statutory authority in the definition of “contested case”; and standardizes the definition of “protest” with the definition in Division 2.

Rule cleanup/clarity and consistency with statute: aligns “water use subject to transfer” definition with statutory definition; modifies definition of “stockwater use” and “proposed certificate” for clarity; deletes definitions and provisions that are not used elsewhere in the rules or are no longer relevant to any pending applications; and updates references and renumbers rules due to deletions.

Applicability: provisions in these rules are effective April 1, 2026.

Division 305 – NEW DIVISION - General Map Criteria

Policy/process: establishes standardized criteria for maps submitted to the Department for water right transactions to reduce confusion and increase efficiencies by consolidating standard requirements in one section. Certain transaction-specific requirements are still included in the applicable rule division.

Applicability: provisions in these rules apply to maps submitted on or after April 1, 2026.

Division 310 – Water right application processing

2025 Legislation: allows for groundwater permit issuance in a groundwater quality area to consolidate drinking water wells (exempt from water availability review); phased application processing; electronic documentation and email addresses; return of applications for sources that are closed to further appropriation; automatic final orders, and uniform contested cases, protests, and requests for party status (links to Division 2).

Policy/process: standardizes mapping criteria across transaction types (links to Division 305) while allowing for additional mapping requirements specific to this transaction type; requires notice to landowner if someone else applies for a water right on their property; requires proof of signatory authority for representatives of certain entities; removes required application information that the Department can get elsewhere; removes requirements for certain entities to post the Department’s weekly public notice; and provides clear parameters and time frames for when and how long an administrative hold may be issued.

Rule cleanup/clarity and consistency with statute: clarifies notice requirements of the APA; removes language linked to authorities no longer in statute; updates rule and statutory references and makes grammatical fixes; removes ability to accept land use receipts and to approve without land use information, which is inconsistent with OAR 690, Division 5 rules; updates rules to conform with other rule amendments.

Applicability: provisions linked to Division 2 have the same applicability as Division 2. The provisions related to returning applications for sources that are withdrawn from further appropriation apply to new and pending applications where a PFO has not been issued prior to April 1, 2026, and the source water was closed prior to application submission; except for groundwater applications for recovery of groundwater under an artificial recharge or aquifer storage and recovery project or requesting a basin program rule exception. All other rule changes apply to applications submitted on or after April 1, 2026.

Division 315 – Water rights permit extensions

2026 Legislation: adds narrow allowance for other than municipal, quasi-municipal, and group domestic permits to apply for a one-time extension not exceeding seven years, if development was delayed by other local, state or federal permitting processes or appeals related to the project and if application for extension is submitted prior to expiration of a permit or existing extension. This may be granted in addition to the two-year extension for pending permits below.

2025 Legislation: implements 20-year and 10-year extension limits for quasi-municipal and group domestic permits, respectively, and two-year limits for all other pending permits; repeals extension process for new permits (excluding municipal, quasi-municipal and group domestic) that receive proposed final orders on the permit application on or after April 1, 2026 (new statutes provides seven years for development with no extension instead of five); electronic documentation and email addresses; and uniform protests and contested cases, and automatic final orders (links to Division 2).

Policy/process: eliminates the requirement to impose checkpoint conditions because of the new limitations on the length of extensions but retains Department authority to condition an extension order to periodically document the continued need for the permit; conforms existing agency policy of denying extension applications when water use began prior to pre-use fish-related permit conditions being met; and adds information about how the proposed final order on the extension application may initiate cancellation proceedings if an extension is denied and requirements for cancellation are met.

Consistency with statute: aligns process with existing internal guidance and statute related to counties, municipalities or districts constructing new storage projects that may apply for extensions; aligns definition of “undeveloped portion” with the definitions in ORS 537.230(1) and ORS 537.630(1); conforms with APA notice requirements; and clarifies per statute that the permit holder has 90 days after completion date to either submit a claim of beneficial use or an extension application.

Rule cleanup/clarity: updates rules to conform with other rule amendments; removes the outdated reference to a 2006 implementation evaluation; reorganizes the location of the begin-construction requirement.

Applicability: The new rules apply to municipal, quasi-municipal, group domestic, and group domestic expanded use permit extension of time applications submitted on or after April 1, 2026, and to extension applications for all other uses unless a PFO was issued on the extension application prior to April 1, 2026. Provisions associated with 2026 legislation are effective June 5, 2026. The provisions linked to Division 2 have the same applicability as Division 2.

Division 325 – Assignment of a water right permit and request for issuance of replacement permits

2025 Legislation: electronic documents and email addresses; automatic final orders, and uniform contested case and protests (links to Division 2).

Policy/process: clarifies application requirements; creates consistency with divisions 380 and 382 in renaming a technical review to initial review (2025 legislation); standardizes mapping criteria across transaction types (links to Division 305) while allowing for additional mapping requirements specific to this transaction type; and allows for acceptance of digital seal of CWREs.

Rule cleanup/clarity and consistency with statute: aligns consistency on mailing of notices with the APA; clarifies that applications can only be accepted if the completion date is unexpired, however approval of the application is not contingent upon the completion date being unexpired; clarifies that permit means water right permit; clarifies function of the rule; improves description of completion date; and aligns definition of injury.

Applicability: The provisions linked to Division 2 have the same applicability as Division 2. All other rule changes apply to applications submitted on or after April 1, 2026.

Division 340 – Water use authorizations (limited to limited licenses and expedited stored water)

2025 Legislation: electronic documents.

Policy/process: standardizes mapping criteria across transaction types (links to Division 305) while allowing for additional mapping requirements specific to these transaction types; and in response to recent court ruling on expedited use of stored water, provides clarity on when a public comment has raised a public interest issue that merits the standard process.

Rule cleanup/clarity and consistency with statute: removes circular and conflicting references.

Applicability: provisions in these rules apply to applications submitted on or after April 1, 2026.

Division 380 – Water right transfers

2025 Legislation: electronic documents and email addresses; weekly public notice and change in newspaper notice; phased application processes; and uniform protest, party status and contested case procedures, and automatic final orders (links to Division 2); standardizes document naming with water rights documents; and Department may deny a change in point of appropriation in certain circumstances for transfers and permit amendments (ORS 537.211(5) and ORS 540.586).

Policy/Process:

Adopts new rules governing permit amendments as no rules currently exist, mirrors requirements for regular transfers, except as otherwise provided by statute
Temporary transfers: removes character of use to store water which is inconsistent with statute; adopts new rule to allow temporary transfer renewals; delegates authority to the Department (instead of Commission) to issue a final order after a contested case hearing even when exceptions to the Administrative Law Judge’s proposed order are timely filed
Historical POD changes: clarifies claim of injury process, applicant is required to provide proof of notification to affected water right holders per statute, criteria for approval including adding enlargement, that instream water rights are considered affected rights, and timely comments are part of injury and enlargement analysis; clarifies process applies to surface water only and does not apply to changing the location of a dam
Substitutions: clarifies that substitution must be terminated before a new change can occur
Specific-to-General Industrial: specifies information necessary to demonstrate the quantity of water diverted for the original industrial use and allows Department to ask for additional information
Clarifies that the Department may condition transfers and permit amendments to prevent injury and enlargement resulting from the proposed changes
Standardizes mapping criteria across transaction types (links to Division 305) while allowing for additional mapping requirements specific to transaction types in Division 380
Describes the mechanism for the transfer holder or receiving landowner to inform the Department that the approved change in point of diversion or appropriation was not completed and to request reversion back to the last authorized location
Clarifies process when forfeiture is asserted as part of a transfer protest (links to Division 17)
Clarifies that place of use transfer must involve a physical change that alters where the water right is located consistent with enlargement provisions
Clarifies notification process for an applicant of layering issues and how they may be resolved
Updates application requirements to include information to assist with fish screen and passage evaluation, to clarify information needed to assess evidence of use, and clarify when ownership information is required
Clarifies when more than one water right or landowner can be included in a single transfer application
Clarifies when a waiver of fees shall be granted
Clarifies process for consent to injury
For point of diversion changes, clarifies ability to condition a transfer approval order to require a proper fish screen if requested by ODFW
For water right clarifications under ORS 540.560, delegates authority to Department to issue a final order after a contested case hearing even when exceptions to the Administrative Law Judge’s proposed order are timely filed
Removes ability to presume that a transfer would be allowed by, and compatible with comprehensive plans unless an affected local government informs the Department otherwise, because this is inconsistent with OAR 690, Division 5 rules

Rule cleanup/clarity and consistency with statute: removes obsolete applicability language; addresses rule language consistency; removes redundant definitions; and updates rule references.

Applicability: provisions linked to Division 2 have the same applicability as Division 2. All other rule changes apply to applications submitted on or after April 1, 2026.

Division 382 – Groundwater registration modifications

Consistency with 2025 Legislation: electronic documents and email addresses; increases fee ($1,900 - 70% of max for a POU change only and $2,730 - 100% of max for all other changes/combination of changes); replaces newspaper notice with weekly public notice; 45-day protest period; and uniform protest, party status, and contested case process, automatic final orders (links to Division 2); consistent document terminology; and Department may deny a change in point of appropriation in certain circumstances (ORS 537.610(5)).

Policy/process: standardizes mapping criteria across transaction types (links to Division 305) while allowing for additional mapping requirements specific to this transaction type; clarifies notification process to an applicant of layering issues and how they may be resolved; aligns processes with Division 380 pertaining to transfers and permit amendments.

Rule cleanup/clarity: removes redundant definitions and language; aligns with statute terminology regarding tentative priority date and certificate of registration; and cleans up rule references and structure.

Applicability: provisions linked to Division 2 have the same applicability as Division 2. All other rule changes apply to applications submitted on or after April 1, 2026.