The key ways in which the benefits and burdens are being distributed between Nestle and Community

Why are leaseholders limited to make reasonable use of the land when public resources are involved

The principles that govern the use of public resources inform that the resources are only used for the best interest of the public. Moreover, the use of public resources should be done efficiently without any wastage to achieve as much as possible the best outcomes in relation to the costs involved. Wasting in this case implies the use of the resources in an ineffective manner (Office of the Auditor-General New Zealand, 2018). Scanlan (2018) argues that natural resources, which are public resources, are at risk of depletion, exploitation and eventually extinction since there is an emerging force to have them privatized. In this regard, the government has a role to play in protecting public resources for the interests of the present and future generations. The role of the government is conveyed when it comes to determine how resources are managed in relation to property rights. That is, regardless of the conditions that affect public resources, the government maintains its authority in controlling the resources for the best interest of the public. Property rights in a resource as expounded by Scanlan (2018) comprises the control over that property where other parties are excluded from using that resource but that condition is said to be an imperfect right. As allowing it, leads to wasted public resources. When it comes to controlling public resources, the property rights model cannot move the position of the government. The role of the government in this case is important in ensuring proper economic development. The parties that are at risk of losing under the property rights model are able to mitigate that risk by making use of the government. In this regard, the legislation that has been passed in favor of the community that ensures Nestle only draws limited amount of water from Lake Michigan is a fair one. The legislation has ensured that the community and its future generations will continue to benefit more from the lake than Nestle had intended to. 


Office of the Auditor-General New Zealand (2018). Part 3: Principles for good management of public resources: A principle-based approach. Retrieved<>.

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Scanlan, M. K. (2018). The role of the courts in guarding against privatization of important public environmental resources. Michigan Journal of Environmental & Administrative Law, 7(2). Retrieved<>.

Stroup, R. & Baden, J. A. (2016). Property rights and natural resource management: A bibliographical essay by Stroup and Baden. Retrieved<>.

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