Hydros and the Municipality of Ölfus Submit Comments on the Draft Water Management Act

Hydros ehf. and the Municipality of Ölfus have submitted a joint statement through the government consultation portal regarding the draft bill on the Water Management Act (Government Bill, 157th Legislative Session 2025–2026). The statement was submitted on 2. February 2026.

The objective of the proposed legislation is to strengthen the protection of water resources, prevent the deterioration of water bodies, and ensure the sustainable use of surface and groundwater. The submission places particular emphasis on the implications of the bill for land-based aquaculture in Ölfus, which has become an important pillar of local economic development in recent years.

Key points highlighted in the submission include:

  • Support for a comprehensive legal framework
    Hydros and the Municipality of Ölfus welcome the establishment of a coherent framework for water management and stress the importance of water resources as a foundation for sustainable economic development, including land-based aquaculture.

  • Recognition of the specific nature of closed land-based aquaculture systems
    Land-based aquaculture in Ölfus operates in closed, technologically controlled systems with continuous monitoring of water use and water quality. The application of the legislation must take this specific context into account and be aligned with sector-specific laws, including legislation on aquaculture.

  • Assessment based on measurable environmental impacts
    Any evaluation of potential deterioration of water bodies should be based on actual, measurable impacts rather than theoretical assumptions or broad classifications of activities.

  • Proportionality and predictability in permitting and monitoring
    Reviews or amendments to permits should be gradual, data-driven, and consistent with the principle of proportionality, with less intrusive measures applied before more restrictive actions are considered.

  • Alignment with municipal planning and local development considerations
    When coordinating water management plans with municipal spatial planning, due regard must be given to existing permitted activities, investments already undertaken, and local development and community interests.

In conclusion, Hydros and the Municipality of Ölfus emphasise that the Water Management Act can become an effective instrument for protecting water resources, provided that its application is objective, coordinated with sector-specific legislation, and ensures a balanced approach between environmental protection, sustainable industry development, and investment certainty.

👉 The full submission is available via the government consultation portal:
https://samradsgatt.island.is