The Competent Authority shall establish activities areas based on river basin, their specific geographic environment and economic benefit.

Initiation of Irrigation Association is conducted according to one of the following Subparagraphs:
1. Initiation of Irrigation Association can be applied by 50 members or above in the activities areas with qualifications specified in the first Paragraph of Article 14. The applicants shall report to the Competent Authority for approval;
2. Initiation of Irrigation Association deemed necessary by the Competent Authority.

For preparations of Irrigation Association and its arrangement agencies of the initiator organizations, the Competent Authority can supervise and guide these matters and agencies.

Preparation agency of Irrigation Association shall put forth application forms, an organization constitution draft, activities zone map, activities proposal, budget proposal and roster of overall qualified members in activities area, and consent with joint signatures by more than half of the qualified members. They shall file an operation application to the Competent Authority for establishment approval.

In cases of natural environmental change or alteration of water resources plan after initiation of Irrigation Association, the Competent Authority may determine to merge, divide, alter or eliminate individual Irrigation Association and activities area thereof ex offcio or in accordance with application with Irrigation Association.
Application in the preceding Paragraph shall be under resolution of advisory council and consent with joint signatures of more than half of qualified members.