Alberta's communities and economy are growing fast, and so does the demand for water. Traditionally, water transfers required 10 percent of the water be held back, often preventing readily available water from being safely used by irrigators, businesses and communities that need it.

Alberta's government has released three new policy directions so that water is only held back when absolutely needed. These new rules will make water transfers easier, free up more water in southern and central Alberta, and support economic growth for agriculture, industry and municipalities.

"Alberta communities, irrigators, and industry have asked for a more flexible system. Removing unnecessary holdbacks will make it easier - and less costly - for water license users to get the water they need, when they need it most, without reducing their overall allocation."

Rebecca Schulz, Minister of Environment and Protected Areas

Previously, 10 per cent holdbacks were taken for most licence transfers. Alberta's government recently engaged with water users across the province and heard repeatedly that unnecessary holdbacks are reducing water-sharing, adding unnecessary costs and limiting the potential water supply during droughts and shortages. For example, under the previous system, a southern Alberta irrigator transferring water to another farmer would have had to hold back 10 per cent of that amount, often meaning that thousands of cubic meters of water cannot go to where they are desperately needed.

Now, water will only be held back as needed to prevent negatively affecting other water users or the environment, in line with the requirements under the Water Act. In Alberta, water licences are already issued with specific conditions designed to protect the aquatic environment, meaning most additional holdbacks are not needed. This change will also make the system more effective as water licence holders can now transfer unused water to others who need it.

The new guidance applies to all river basins where transfers are allowed, including the South Saskatchewan River, Battle River and Milk River. The new policy guidance will make sure that future decisions on transfer applications follow a consistent and common-sense approach across regions for determining if holdbacks are needed.

This is part of the province's ongoing work to maximize water availability in Alberta. The government engaged with Albertans in late 2024 and early 2025 to hear ideas about how to strengthen and modernize the water system. This is complex and nuanced work and government is working to identify which gaps and opportunities can be addressed in 2025, and which will require further engagement with Albertans to explore options and plans for implementation.

Quick facts

• There are about 25,000 water licences in Alberta.
• The Water Act enables licences to be transferred, in whole or in part, in areas where an approved water management plan is established. Approved plans are in place in the Milk, South Saskatchewan and Battle River basins.
• As of January 2025, there have been 407 completed water transfers, most of which occurred in the South Saskatchewan River Basin and some in the Battle River basin.
  • Holdbacks were taken in 256 of 407 completed transfers.

Related information

• Guide to 10% holdbacks for water transfers - Battle River basin
• Guide to 10% holdbacks for water transfers - Milk River basin
• Guide to 10% holdbacks for water transfers - South Saskatchewan River basin