In the 2025 legislative session, Oregon passed House Bill 3342 (HB 3342)—a comprehensive reform that brings some of the most significant changes to our state’s water law in recent memory. As someone who works directly with landowners, agencies, and developers on water rights across Oregon, I want to share the most important aspects of this bill and how they’ll affect water rights holders starting April 1, 2026, when the bill officially takes effect.
At its core, HB 3342 is about modernization and sustainability. It updates the way water rights are administered, strengthens oversight of groundwater, shifts communication to a centralized digital platform, and tightens deadlines to encourage timely and responsible water use. These changes are important, necessary—and they will require preparation.
Stricter Oversight of Groundwater
Perhaps the most consequential change in HB 3342 is the Oregon Water Resources Department’s expanded authority to deny groundwater-related applications under specific conditions.
Applications will now be returned, not processed, if:
- The source falls within a restricted area, such as a designated critical groundwater area;
- The source has already been withdrawn from appropriation; or
- The proposed use exceeds limitations set by state classification.
This shift directly addresses growing concerns about aquifer depletion, especially in high-demand basins. For those looking to drill a new well or change the use or location of an existing water right, approval will only be granted if:
- The proposed new point of use is within the same aquifer and geographic area;
- The application is tied to an approved groundwater mitigation strategy; or
- The project is for aquifer recharge or storage recovery.
This means it’s no longer enough to simply identify a source and file a request—you’ll need to evaluate whether your proposed use aligns with regional restrictions and hydrogeologic boundaries.
One Extension Only—and a Hard Deadline
Another significant reform is the limitation of permit extensions. Historically, water right holders could request multiple extensions, sometimes over many years. HB 3342 limits this to a single extension of up to two years.
More importantly, once the WRD requests additional information to support an application, the applicant now has 90 days to respond. If that deadline is missed, the application will be closed automatically.
For those of us working on development timelines—whether for agricultural, industrial, or municipal projects—this means greater urgency and more proactive planning. Waiting for external conditions to align before acting on a permit is no longer a viable strategy under the new law.
Public Notices Go Fully Digital
One of the most welcome updates is the elimination of scattered newspaper-based notifications. HB 3342 creates a centralized Weekly Public Notice, published online by the WRD. This notice will now serve as the official publication method for:
- New water right applications
- Changes and transfers
- Protest periods
- Final orders and agency decisions
While this improves transparency and access to information statewide, it also places a greater responsibility on rights holders and stakeholders to actively monitor WRD publications. Missing a protest period or update can result in missed opportunities to respond or defend an interest.
Streamlined Permitting for Small Reservoirs and Hydropower
For those building small reservoirs (under 9.2 acre-feet), HB 3342 removes the requirement for a certified survey, allowing an applicant to submit a simple affidavit and a basic location map that meets WRD standards. This makes water storage more accessible for landowners with small-scale needs.
Similarly, hydropower applicants will see more structured timelines, clearer expectations for public involvement, and improved coordination among state agencies.
These updates reduce technical and financial hurdles for straightforward projects while maintaining safeguards for environmental and community impacts.
A Shift Toward Transparency and Accountability
Overall, HB 3342 is a step toward more accountable, streamlined, and environmentally aware water governance in Oregon. But it also introduces more defined boundaries and less flexibility—especially for those accustomed to lengthy timelines or loosely enforced rules.
As someone who’s been deeply involved in Oregon water rights for years, I see this as a call for preparedness. Understanding basin-specific limitations, responding to agency requests on time, and monitoring WRD communications will no longer be optional—it will be essential.
If you’re currently managing water rights or planning to apply for new ones, now is the time to review your position, confirm whether your water source is affected by restrictions, and prepare for a more structured process beginning in 2026.