Tennessee Code Title 69. Waters, Waterways, Drains and Levees § 69-7-204

(a) All persons or entities:

shall, when proposing a new or increased withdrawal of surface water or ground water for the purpose of transferring or diverting, or both, some or all of it out of a river basin either directly or through one (1) or more intermediaries, first apply for and obtain a permit from the commissioner of environment and conservation, or the commissioner's designee, prior to such diversion or transfer; provided, that in the case of ground water withdrawal, this section shall only apply if the loss of the ground water has a significant potential to adversely affect the flow of a Tennessee surface water.

(b) For purposes of determining the amount of an existing inter-basin transfer under this section, it is the average daily amount calculated for the highest continuous 90-day period between January 1, 1997, and December 31, 1999; provided, that nothing whatsoever in this section shall apply to existing withdrawals by entities described above except that such persons or entities shall be subject to this section when proposing to:

(c) All persons or entities that are issued a permit under subsection (a) shall operate the withdrawal activity in accordance with all terms and conditions of the permit.