Do I need a permit to drill for water on my land?
It depends on the scale — the groundwater on your own lot belongs to you, but to drill for it you must notify Orkustofnun, and large use needs a licence. The myth that lives on online: that a borehole deeper than a certain number of metres triggers a permit. That is wrong — there is no depth threshold in the law. Under the Act on the Survey and Utilisation of Ground Resources no. 57/1998, owned land carries ownership of the resources in the ground (Art. 3), including groundwater. A landowner may, without a utilisation licence, use groundwater on their own land for household and farming needs up to 70 l/s (Art. 14), but must notify Orkustofnun of the planned drilling, and it may set conditions. Geothermal energy may likewise be used without a licence for own needs up to 3.5 MW (Art. 10), once notified. Above these limits you need a utilisation licence. If instead you dig a well without drilling, the old Water Act no. 15/1923 applies and no Orkustofnun licence is needed.
📋 The rules
- Owned land carries ownership of the resources in the ground, including groundwater and geothermal energy — Art. 3 of Act no. 57/1998; in public land (þjóðlendur) the resources belong to the State.
- Groundwater on your own land may be used without a utilisation licence up to 70 l/s for household and farming needs (Art. 14), but you must notify Orkustofnun of the planned drilling.
- Geothermal energy may be used without a licence for own needs up to 3.5 MW (Art. 10); above that, or for electricity generation, you need a utilisation licence.
- It is the drilling itself and the scale — not the depth — that brings the matter under the resources act; there is no depth threshold in the law.
- A well or water source made without drilling on your own land is allowed under the Water Act no. 15/1923 without an Orkustofnun licence.
🔓 Exceptions
- If water abstraction exceeds 70 l/s or geothermal use exceeds 3.5 MW, or the use is not for your own household and farming needs, a utilisation licence from Orkustofnun is required.
- In public land (þjóðlendur) the resources in the ground belong to the State, so surface ownership alone does not entitle you to use them without authorisation.
- Drilling that may affect water protection, other abstraction or the environment can call for further permits or conditions, for example from the health committee or on water-protection areas.
⚠️ Penalties & fines
Drilling for water or geothermal energy without notifying Orkustofnun, or using more than the limits without a utilisation licence, breaches Act no. 57/1998. Orkustofnun has oversight and can require the use to stop or be brought into a lawful state, set conditions after the fact and, if its instructions are ignored, impose daily fines or enforcement measures. The hidden cost is twofold. First, an unregistered borehole can cause damage to a neighbour's groundwater or to your own water source, and liability in damages then arises between landowners. Second, unlawful or unregistered water and geothermal use can lower a property's value and show up as a defect at sale, because a buyer wants to see that water rights and boreholes are in lawful order. Drilling contractors also keep a drilling log for each hole; the lack of one can hamper both registration and later use.
📎 Official sources
- Althingi · Act on Survey and Utilisation of Ground Resources no. 57/1998 →
- Orkustofnun (National Energy Authority) · water and groundwater →
- Althingi · Water Act no. 15/1923 (consolidated) →
❓ Frequently asked
Does a borehole have to go below a certain depth for a permit to be needed?
No, it is a widespread misconception that the licence requirement depends on the depth of the hole in metres. There is no depth threshold in Act no. 57/1998; what matters is whether you drill and how much you use, because water abstraction above 70 litres per second or geothermal use above 3.5 MW calls for a utilisation licence.
Do I own the groundwater under my lot?
Yes, owned land carries ownership of the resources in the ground, including groundwater and geothermal energy, under Art. 3 of Act no. 57/1998. In public land, however, these resources belong to the State, so surface ownership of the land determines whether you may use the water below without a separate authorisation.
Can I dig a well without telling anyone?
A well or water source made without drilling on your own land is allowed under the Water Act no. 15/1923 without an Orkustofnun licence. As soon as you drill for water the matter comes under the resources act no. 57/1998, and then you must notify Orkustofnun of the planned drilling before the work begins.
What do I have to notify Orkustofnun about?
You must notify Orkustofnun of planned drilling for groundwater or geothermal energy on your own land, even when the use is within the licence-free limits. The authority can then set conditions on safety and conduct, and if the use exceeds 70 l/s for water or 3.5 MW for geothermal energy you also need a formal utilisation licence.
What happens if I drill without notifying it?
Orkustofnun has oversight and can require the use to stop or be brought into a lawful state and impose daily fines if its instructions are ignored. An unregistered borehole can also give rise to liability in damages towards neighbours if it affects their water source, and show up as a defect when the property is sold.
🔎 Common searches
What people search to land here:
- “borehole permit iceland”
- “drilling for water own land”
- “groundwater ownership iceland”
- “well without permit”
- “orkustofnun drilling notification”
- “geothermal own use licence”