Lawmakers Change Indiana's Groundwater Rights Law
Published: Friday, September 26, 2025
Indiana's statewide enactment of the Emergency Regulation of Ground Water Rights Statute in 1985 under IC 14-25-4 provides owners of small capacity water wells with protection against the impacts of high-capacity groundwater pumping if the water withdrawals substantially lower water levels, resulting in the failure of a small capacity well.
A high capacity well is defined in the statute as "the ground water withdrawal facility of a person that, in the aggregate from all sources and by all methods, has the capability of withdrawing at least one hundred thousand (100,000) gallons of ground water in one (1) day."
A small capacity well (nonsignificant groundwater withdrawal facility) is defined as having less than 100,000 gallon-per-day pumping capability. Additional information regarding the provisions of IC 14-25-4 can be found on the Division of Water webpage.
Recent amendments to IC 14-25-4 by Senate Enrolled Act 28 now provide for the owner or operator of a significant groundwater withdrawal facility to file a complaint with the DNR if it is believed that the facility has failed to furnish its normal supply of water due to water level impacts caused by another high-capacity facility.
SEA 28 requires the DNR to launch an investigation into a complaint of a well failure from a significant groundwater withdrawal facility within three business days and also requires that the owner of a significant ground water withdrawal facility believed to be responsible for the failure or substantial impairment of another high capacity or small capacity water well to provide "timely and reasonable compensation" to the well owner.
"Timely and reasonable compensation" under IC 14-25-4 consists of, and is limited to the following:
• The immediate temporary provision at the prior point of use of an adequate supply of potable water.
• Reimbursement of expenses reasonably incurred by the complainant to do the following: obtain an immediate temporary provision at the prior point of use of an adequate supply of potable water; the restoration of the affected well to its former relative capability; the permanent provision at the point of use of an alternate potable supply of equal quantity; or the permanent restriction or scheduling of the high-capacity pumping so that the affected water well continues to provide its normal supply of water, or its normal supply of potable water if the well normally furnishes potable water.
Indiana Code 14-25-4 protects all properly functioning small capacity wells installed before Jan. 1, 1986. Small capacity wells installed after this date must be constructed in accordance with the standards set forth in Information Bulletin #26 or Rule 312 IAC 12 to have protection under the law.
Copies of Bulletin #26 and 312 IAC 12 can be found on the Division of Water webpage at https://www.in.gov/dnr/water/statutes-and-rules/.
These standards establish minimum requirements for pump setting depths and the amount of the source aquifer that must be penetrated by the well.
With the enactment of SEA 28 on July 1, 2025, owners of newly installed significant groundwater withdrawal facilities wanting to receive protection under IC 14-25-4 must construct their wells in conformance with rules adopted under the law.
The promulgation of rules for the construction of high-capacity water wells will be initiated by the DNR during the summer of 2025. High-capacity wells installed prior to enactment of the new rule will receive protection under IC 14-25-4 if the well is determined to be properly functioning.
Amendments to IC 14-25-4 by SEA 28 only provide protection for high-capacity groundwater withdrawal facilities against the pumping impacts caused by other high capacity facilities. SEA 28 does not establish a priority for groundwater withdrawals in Indiana based upon well capacity, type of water use, or prior appropriation.
Return to Top of Page