The Authority shall exercise the following powers and perform the following functions, namely:-
(a) to determine the distribution of entitlements for various categories of use and the equitable distribution of entitlements of water within each category of use on such terms and conditions as may be prescribed;
(b) to enforce the decisions or orders issued under this Act;
(c) to determine the priority of equitable distribution of water available at the water resource project, sub-basin and river basin levels during periods of scarcity;
(d) to establish a water tariff system, and to fix the criteria for water charges both for irrigation and drinking water after ascertaining the views of the beneficiary public, based on the principle that the water charges shall reflect the full recovery of the cost of the operation and maintenance after duly accounting for the inefficiencies of the delivery system so that the cost of inefficiencies are not passed on to the beneficiary;
(e) to administer and manage inter-state water resources apportionment on river systems, of the State;
(f) to review and clear water resources projects proposed at the sub-basin and river basin level to ensure that a proposal is in conformity with Integrated State Water Plan and also with regard to the economic, hydrologic and environmental viability and where relevant, on the States obligations under Tribunals, Agreements, or Decrees involving inter-state entitlements;
(g) in the event of water scarcity, the Authority, in compliance with its policy and rules for allocating such scarcity, shall adjust the quantities of water to be made available to all entitlements and shall permit the temporary transfer of water entitlements between users and categories of users;
(h) to establish regulatory system for the water resources of the State, including surface and sub-surface waters, to regulate the use of these waters, apportion the entitlement to the use of the water of the State between water using categories;
(i) to establish a system of enforcement, monitoring and measurement of the entitlements for the use of water to ensure that the actual use of water, both in quantity and type of use are in compliance with the entitlements as issued by the Authority;
(j) to administer the use and entitlement of water resources within the State in a manner consistent with the State Water Policy to ensure the compliance of the obligation of State with regard to the apportionment of inter-state waters between the State and other States;
(k) to promote efficient use of water and to minimize the wastage of water and to fix reasonable use criteria for each category of use;
(l) to determine and ensure that cross-subsidies between categories of use, if any, being given by the Government are totally offset by stable funding from such cross-subsidies or Government payments to assure that the sustainable operation and maintenance of the water management and delivery systems within the State are not jeopardized in any way;
(m) develop the State water entitlement data base that shall clearly record all entitlements issued for the use of water within the State, any transfers of entitlements and a record of deliveries and uses made as a result of those entitlements;
(n) to facilitate and ensure development, maintenance and dissemination, of a comprehensive hydro- meteorological information data base;
(o) the Authority may review and revise the water charges after every three years;
(p) the Authority may ensure that the Irrigation Status Report is published by the Government every year. Such report shall contain all statistical data relating to irrigation including details in respect of district-wise irrigation potential created and its actual utilization;
(q) to prescribe service standards for the service providers of water with prior approval of the Government and ensure compliance of these standards;
(r) to ensure re-cycling and re-use of water as per prescribed standards; and
(s) to impose and ensure complete ban on encroachment on water bodies.