Notwithstanding any provision of ORS § 537.332 to 537.343 and 537.350, the right to the use of the waters of this state for a project for multipurpose storage or municipal uses or by a municipal applicant, as defined in ORS § 537.282, for a hydroelectric project, shall take precedence over an in-stream water right when the Water Resources Department conducts a review of the proposed project in accordance with ORS § 537.170. The precedence given under this section shall not apply if the in-stream water right was established pursuant to ORS § 537.346 or 537.348. [1987 c.859 § 11; 1995 c.416 § 42]

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