Law No. 7846 on the construction, administration, maintenance and operation of irrigation and drainage system.

The Law declares all water resources to be State property (art. 5), and subjects the use of water resources for agricultural purposes to the grant of an administrative authorization or concession (art. 6). The construction of new irrigation and drainage systems, and the alteration of existing systems, are also subject to permission of the District Water Directorates, which operate under the Ministry of Agriculture and Food (art. 8). These are mandated by the Law to administer, operate and maintain 'major' irrigation and drainage systems, while the on-farm infrastructure is operated by Water Users' Associations (art. 9). As a rule, the costs to the District Water Directorates of operating and maintaining 'major' irrigation and drainage systems are to be recovered from the users, through the payment of water charges, commensurate to the quantities of water delivered. However, if necessary, the State may grant a subsidy (arts. 16 and 27). The rates of water charges are fixed by the Council of Ministers (art. 28). If a Water Users' Association exists, payments are collected and made by the Association, but no water charges are levied on the members of an Association in respect of irrigation and drainage systems administered by the Association. Members are nevertheless required to contribute towards the operation and maintenance costs of the systems (art. 27). Irrigation water is delivered by the District Water Directorates to users on a contractual basis (art. 20), with express provision made for compensation of damages suffered by the water users for failure of the supplier to deliver the agreed quantities of water at the agreed time (art. 26).
However, deliveries can be suspended unilaterally for failure by the recipient of irrigation water to properly maintain the systems (art. 17). Water for agricultural use is to be accorded priority in the operation of canals supplying hydroelectric stations and irrigated areas (art. 10). Water users are free to establish Water Users' Associations. However, under the circumstances indicated in the Act, such Associations can be established by order of the municipal authorities or District Water Directorates. Duly registered Water Users' Associations shall have legal personality (art. 13). In addition to operating and maintaining the on-farm irrigation infrastructure, and to collecting charges from the membership and paying them to the Government against irrigation water deliveries, the Water Users' Associations shall be judges of first instance in water-related disputes amongst their members, and shall hear and pass judgement in respect of administrative offenses committed by their members within the boundaries of the Association.