What do 'water rights' refer to in real estate?

Water rights in real estate primarily refer to the legal entitlement to use water from a source for property purposes, which encompasses various aspects of land use and resource management involving bodies of water such as rivers, lakes, and groundwater. This entitlement is crucial for property owners, especially in areas where water access is essential for agricultural operations, domestic use, or industrial activities.

Having the legal right to use water means that the property owner can legally draw from these water sources, subject to regulations and the rights of other users. This concept is influenced by various doctrines, such as riparian rights (where owners adjacent to water bodies have rights to use water) and prior appropriation (where water rights are granted based on first use).

The other options do not fully encapsulate the essence of water rights as they pertain specifically to legal entitlements and usability rather than general ownership or drilling rights. While some property owners may have the right to drill wells or extract minerals, these do not constitute broad water rights in real estate. Likewise, simply owning adjacent water bodies does not grant rights to use or extract water unless specified by law. The right to sell water is a separate agreement and does not represent ownership or usage rights inherent in the property itself.