Water management authority.

Establishes the water management authority as an agency of state government. Requires the governor to appoint an administrator of the authority (administrator). Provides for the adoption and implementation of a statewide water management plan. Provides that, upon adoption of the statewide water management plan, the administrator assumes powers and duties related to: (1) water rights and emergency regulation of surface and ground water; (2) potable water rights; (3) water resources management; (4) the Great Lakes compact; (5) reservoirs; (6) preservation and legal action concerning lakes; (7) flood control; (8) construction of channels; and (9) conservancy districts. Establishes one regional water management council for each of nine hydrological regions in Indiana. Provides for the designation of a drainage project as a "drainage project of water management importance" if it meets certain conditions, and provides that a permit from the administrator is required for such a project. Requires an agency that constructs and repairs highways to consult with the administrator to limit sedimentation.