(1) Water charge rules, and Division 1 of Part 4, apply in relation to all of the water resources in a referring State, or part of a referring State, that are not Basin water resources if:
(a) a law of the State provides that this section applies to the State, or that part of the State; and
(b) the regulations provide that this section applies to the State, or that part of the State.
(2) Water charge rules, and Division 1 of Part 4, apply in relation to all of the water resources in the Northern Territory, or part of the Territory, if:
(a) a law of the Northern Territory provides that this section applies to the Territory, or that part of the Territory; and
(b) the regulations provide that this section applies to the Northern Territory, or that part of the Territory.
(3) However, water charge rules, and Division 1 of Part 4, do not apply in relation to:
(a) water resources that are prescribed by the regulations for the purposes of this paragraph; and
(b) urban water supply activities beyond the point at which the water has been removed from a water resource in the referring State, or the Northern Territory.
(4) This section has effect despite subsection 91(2).
(5) This section does not affect the operation of Part 4 in relation to Basin water resources.