(1) This section applies to a person who—
(a) has applied for a licence to take water from a particular place on a waterway; but
(b) does not satisfy the requirement under the Act, section 30 (2) (a) (i) to hold a water access entitlement, a corresponding water access entitlement or a surviving allocation on which to base the taking of water from that place.
(2) The authority may exempt the person from the requirement if—
(a) the person has discharged an amount of treated sewage (the discharged amount ) into the waterway at a point upstream of the place; and
(b) the amount of water to be taken under the licence is not more than the discharged amount (less any part of the discharged amount in relation to which an exemption has already been given under this section).
(3) The authority may give the exemption only if satisfied that—
(a) the treated sewage was discharged into the waterway as part of a reuse scheme; and
(b) giving the exemption would result in reduced demand on urban water supply or other improved environmental outcomes.