A trust is a legal arrangement where a person or organisation, called a trustee, holds and manages assets for a clear purpose.
A trust is a bit like a safe with a set of instructions. The trustee looks after what is inside the safe and must follow the instructions about how the assets can be used.
For the Enduring Water Holding Arrangements, the trust could hold water entitlements and other assets for the benefit of Basin First Nations Peoples. The final purpose of the trust will be shaped by feedback from Basin First Nations Peoples through the co-design process.
The proposed model is a charitable trust. A company limited by guarantee would act as the trustee. This company would manage the trust’s assets (the water entitlements) and make decisions about how they are used.
The company would follow a Constitution. The Constitution is like a rulebook for the company. It explains who is responsible for making decisions, how decisions are made and how the company must operate.
The trust would also follow a Trust Deed. The Trust Deed is like an instruction manual for the trust. It explains why the trust exists, who it is meant to benefit and how its assets must be managed.