1.  Before a supplier of water may require the dedication of a right to appropriate water in order to ensure a sufficient supply of water to provide new or modified water service to one or more parcels that will be developed, divided or subdivided pursuant to the provisions of this section and NRS 278.010 to 278.630, inclusive, the dedication requirement must:

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(a) Be required pursuant to an ordinance, rule, regulation or any other requirement adopted by the supplier of water;

(b) Be based on reliable data and procedures estimating demand;

(c) Consider any requirements for a sustainable water supply; and

(d) Consider historic usage by similar existing water services.

2.  If a right to appropriate water has been dedicated pursuant to subsection 1 in connection with the approval of a final map filed pursuant to the provisions of this section and NRS 278.010 to 278.630, inclusive, a supplier of water may not reduce the rate of diversion of the right to appropriate water that has been dedicated unless the State Engineer approves the reduction.

3.  Except as otherwise provided in this subsection, a supplier of water may not sell, lease, convey or transfer a right to appropriate water that has been dedicated pursuant to subsection 1. This subsection does not apply to:

(a) Mergers and acquisitions of a water system owned or operated by a utility;

(b) Sales, leases, conveyances or transfers by the supplier of water to:

(1) Develop, improve or maintain the availability and reliability of the water supply; and

(2) Further the sustainable and efficient management of the water supply; or

(c) Settlements of judicial or administrative proceedings concerning a water system owned or operated by a utility.

4.  As used in this section:

(a) ’Final map’ has the meaning ascribed to it in NRS 278.0145.

(b) ’Modified water service’ means a change or alteration to:

(1) The quantity of water delivered to one or more parcels;

(2) The capacity to deliver water to one or more parcels; or

(3) Any facility of the supplier of water necessitated by construction on one or more parcels.

(c) ’Supplier of water’ includes, without limitation:

(1) Any county, city, town, local improvement district, general improvement district and water conservancy district;

(2) Any water district, water system, water project or water planning and advisory board created by a special act of the Legislature;

(3) A public utility; and

(4) Any other public or private entity, that supplies water for municipal, industrial or domestic purposes.