A conservancy district is a special-purpose unit of local government that manages water resources within a defined geographic area at the parcel level (governed by a board of residents from that defined geographic area). These districts are created to address specific water-related issues such as flood prevention and control, drainage improvement, irrigation, water supply, sewage services, recreation, erosion control, augmentation of streams, and operation and maintenance of structures related to water management. They are established under the Indiana Conservancy District Act (IC-14-33), which was passed in 1947. Since then, more than 140 conservancy districts have been formed throughout the state, and more than 100 are still active.
Conservancy districts are governed by a board of directors whose members are elected by the property owners living in that district. The board works to form a district plan that outlines the goals as well as specific strategies and projects needed to reach them. After the district plan is approved, the conservancy district works to implement projects outlined in its district plan. Projects can vary widely depending on the needs of the district, but some examples of projects could be water or sewer line connections, dredging, dam maintenance and operation, streambank stabilization, and woody debris removal.
How DNR Interacts with Conservancy Districts
The Watershed Stewardship Section of the Division of Water serves as the DNR liaison for conservancy districts and provides technical assistance when requested. Water planners can also complete field visits. The Watershed Stewardship Section is also involved with the below processes in conjunction with the Natural Resources Commission (NRC).
- Conservancy District Directory
The Indiana Conservancy Act (IC 14-33-5-17) requires that the Board Chair shall notify the DNR Watershed Stewardship Section of the names and addresses of the officers and directors of the district when there are changes. The DNR publishes a directory every year on the DNR website.
- Establishment
After a circuit court has received a petition for establishment and the county auditor has verified the signatures, the petition is forwarded to DNR. The Watershed Stewardship Section will review the petition, conduct public hearings, collect public comments, and provide a fact-finding recommendation report to the NRC.
- District Plans
Conservancy districts are required to submit district plans to DNR Watershed Stewardship Section for review and approval when ordered by the court. District plans must be submitted for approval within 120 days after the appointment of board members. The Watershed Stewardship Section will also respond to time extension requests for developing a district plan.
- Addition of Area
If an addition of area is initiated with the circuit court, the petition will be sent to Watershed Stewardship Section for review. DNR will review the petition and determine if the proposed addition of territory is de minimis. The Watershed Stewardship Section will conduct a public hearing, collect public comment, and provide a fact-finding recommendation report to the NRC. If an addition of area is initiated with the board of directors, the addition request will be forwarded to DNR for review. The circuit court will conduct a hearing, and the Watershed Stewardship Section will provide a recommendation report.
- Unit of Work
According to IC 14-33-6-8, all units of work proposals should be submitted to the Watershed Stewardship Section for review and approval. A unit of work is a stand-alone project with drawings, specifications, and cost estimates. Approval from the Watershed Stewardship Section should be obtained before the board schedules a public hearing for that unit of work. Examples of units of work could consist of dredging, construction projects, ecological restoration projects, and extensive structure repair or rebuild. Examples of units of work do not include yearly maintenance activities like mowing, spraying, clearing, inspections, and operational activities.
- Add Purpose
The proposal to add a purpose is forwarded to the Watershed Stewardship Section. If the petition is initiated with the circuit court (IC 14-33-1-4(1)), the Watershed Stewardship Section will conduct a public hearing, collect public comments, and provide a fact-finding recommendation report to the NRC. If the petition is initiated through a board resolution, the circuit court will conduct a hearing, and the Watershed Stewardship Section will provide a recommendation report.
- Dissolution
The proposal for dissolution is forwarded to the Watershed Stewardship Section. If the petition is initiated with the circuit court, the Watershed Stewardship Section will conduct a public hearing, collect public comments, and provide a fact-finding recommendation report to the NRC. If the petition is initiated through a board resolution, the circuit court will conduct a hearing, and the Watershed Stewardship Section will provide a recommendation report.
Resources for a Conservancy District
Frequently Asked Questions on Conservancy Districts
- What issues can be addressed through establishing a Conservancy District?
- Flood prevention and control.
- Improving drainage.
- Providing for irrigation.
- Providing water supply, including treatment and distribution, for domestic, industrial, and public use.
- Providing for the collection, treatment, and disposal of sewage and other liquid wastes.
- Developing forests, wildlife areas, parks, and recreational facilities where feasible in connection with beneficial water management.
- Preventing the loss of topsoil from injurious water erosion.
- Storage of water for augmentation of stream flow.
- Operation, maintenance, and improvement of any work of improvement for water based recreational purposes or other work of improvement that could have been built for any other purpose authorized by the Act.
- What issues can be addressed through establishment of a Reservoir Conservancy District?
- Developing forests, wildlife areas, parks, and recreational facilities if feasible in connection with beneficial water management.
- The operation, maintenance, and improvement of a work of improvement for water based recreational purposes; or another work of improvement that could have been built for any other purpose authorized by the Act.
- How is a Conservancy District formed?
- Often a local steering group first forms to research the issues and gather input from those who would benefit or be affected.
- To form a district, a petition is created and then circulated in the area to be included in and served by the proposed district. This petition is then filed in the circuit court of the county having the most land in the proposed district.
- The percentage of signatures needed for a successful petition depends on the number of freeholders owning land in the proposed district or proportion of all freeholders in the proposed district.
- A municipality may file a petition to initiate a proposed district by ordinance adopted by the legislative body.
- A reservoir conservancy district may be formed by freeholders provided it includes part or all of a reservoir located partially or within a consolidated city, and at least 25% of the surface of the reservoir is owned by a utility governed by a board of directors for utilities.
- Once the county circuit court determines the petition bears the necessary signatures and is correct as to form and content, the court will refer the petition to DNR.
The Watershed Stewardship Section will conduct a public hearing, collect public comments, and provide a factfinding recommendation report to the NRC. The DNR Division of Water conducts a technical review that includes whether the proposed district:- Appears to be necessary.
- Holds promise of economic and engineering feasibility.
- Offers benefits in excess of costs and damages.
- Serves the public health immediately or prospectively.
- Proposes to cover and serve a proper area.
- Could be compatible with other water management or water supply projects.
- Following action by the NRC, the county court will schedule a hearing regarding the establishment of the district. The statute provides an opportunity for additional evidence to be presented at this hearing.
- What area can be in a Conservancy District?
- Boundaries of a conservancy district are based upon the identification of properties expected to be benefited by the establishment of the district.
- Any area may be included in a district regardless of its political boundaries; however, the district needs to be contiguous with all other parts of the district and cannot overlap another district established for the same purpose.
- Who provides oversight of the Conservancy District?
- A circuit court determines whether to approve the establishment or dissolution of a conservancy district and has jurisdiction for oversight of an existing conservancy district.
- Budgets passed by the board of directors must also be approved by the Department of Local Government Finance.
- Conservancy districts are required to submit annual budgets and expenses and are also subject to periodic audits by the State Board of Accounts.
- Permits from various local, State and Federal agencies may be required for various work conducted by a conservancy district
- Who manages the Conservancy District?
- Freeholders serve on the board of directors and provide management for a district.
- After a conservancy district is established by the circuit court, an initial board of directors is appointed by the county commissioners.
- If the court issues an order establishing a reservoir conservancy district, the board of directors and the utility owner of the reservoir located within the boundaries of the reservoir conservancy district are required to enter into an operating agreement.
- The subsequent directors are then elected by the freeholders of the district.
- Boards routinely hire staff and an attorney to conduct the business of the district.
- Who controls the activities engaged in by a Conservancy District?
- The jurisdiction over activities of a conservancy district ultimately lies with the circuit court that established the district for specific purposes.
- The Natural Resources Commission and DNR acts as a friend to the court by providing technical review and recommendations for specified district activities, which include establishment, district plan, unit of work, addition of area, addition of purpose, and dissolution of a district.
- District leadership, decision making and the day to day operations, however, are accomplished through the conservancy district’s board directors.
- What is the role of the Board of Directors?
- One of the first responsibilities of the initial board of directors is to develop a district plan. The district plan consists of an engineering report that sets forth the general, comprehensive plan for accomplishment of the purpose or purposes for which the district was established.
- The board of directors shall be responsible to place the district plan in operation by implementing the approved purpose(s) and by providing operation and maintenance as provided for in the district plan.
- Who approves the district plan?
- After the board of directors prepares the district plan, it is reviewed by Watershed Stewardship Section.
- If the plan accomplishes, in an economical manner, the purpose or purposes for which the district is established, it should be forwarded to the circuit court for review and final approval.
- How does a Conservancy District pay for its works of improvement?
- Initially to cover legal and engineering startup costs associated with the formation of a district, steering groups sometimes seek voluntary contributions from future freeholders or existing property owner associations.
- Expenses and obligations of the district may be paid from any of the following:
- The receipt of gifts from any source.
- The receipt of funds from governmental agencies.
- The receipt of funds from the sale of services accomplished by the purpose or purposes for which the district was established.
- The receipt of funds from the collection of assessments from land that receives exceptional benefits from the operation of the district plan.
- The collection of assessments for maintenance and operation of works of improvement.
- Under the Indiana Conservancy Act, all of the real property included in the district constitutes a taxing district for the purpose of levying special benefit taxes to pay for the expenses of establishing the district, general preliminary and administrative expenses, and operating and maintaining the district. This special tax equals the amount of benefits received and must be based on return for the benefits.
