Written by Gurjit Ghai, REALTOR®
Rexara Realty Inc.·Published: September 27, 2026·Water Rights
Groundwater in BC is now regulated under the Water Sustainability Act, and most existing wells used for non-domestic purposes, including irrigation and livestock watering above a threshold, are expected to be licensed. A well used only for a single household domestic supply is generally exempt, but a well that waters crops or waters livestock on a commercial farm is not.
The licensing transition has been ongoing, and an unlicensed well that should be licensed can be a real problem on a farm purchase, because the right to draw and use that water is the asset that makes the land productive. A licensed well has a documented allocation and a priority date, while an unlicensed one is a risk and, in a dry year, a lower-priority risk.
Treat the well's licensing status as a due-diligence item: confirm whether it is licensed, the authorized volume, and that the licence is in good standing. Read our Water Rights guide for the framework, and verify the well records with the provincial water database before the offer goes firm.
Important: This answer is general professional guidance for educational purposes and is not legal, tax, financial or regulatory advice. ALR rules, water licensing, zoning and farm-classification requirements can change and depend on your specific property. Always verify with the relevant BC authorities and qualified professionals before making decisions.

Gurjit Ghai, REALTOR®
Personal Real Estate Corporation
Brokerage: Rexara Realty Inc.
Gurjit Ghai is a BC real estate professional specializing in agricultural land, ALR properties, and farm operations across British Columbia. He helps buyers and sellers navigate water rights, soil capability, farm classification, and the unique due diligence that farmland transactions require.