Section 1 [Transfer of Water Permits] Prohibits the Department of Natural Resources (DNR) from imposing additional conditions on a permit, reducing the appropriation allowed, or requiring testing when a water-use permit is transferred as part of the conveyance of real property.

Section 2 [Analysis of Economic Impact of Water Appropriations Plans] Requires DNR to provide estimates of the economic impact of any new restriction or policy on existing and future groundwater users and local governments before a water management plan for appropriating water is prepared.

Section 3 [Groundwater Management Areas Changes] Prohibits dissemination of details of a groundwater management area plan before the plan is approved. Provides that if all action items identified in a groundwater management area plan are not complete within three years, the groundwater management area is abandoned. Requires assessment of economic effects of groundwater management designations.

Section 4 [Definition of Sustainable] Defines “sustainable” for purposes of groundwater management areas as a use that does not result in a change in hydrologic regime of more than 20 percent relative to the August median stream flow.

Section 5 [Well Interference and Testing] Requires a 2.5 percent per year depreciation schedule when determining the costs to a permittee or applicant as a result of an agreement for a well interference claim. Authorizes parties ordered to contribute to an affected well owner to file a contested case petition.