(1) If a shortage of water in a stream or part of a stream exists to the extent that there is not sufficient water in the stream to meet the requirements of all water needs, on its own initiative or on the petition of a person affected by the shortage of water and after notice and hearing, the Arkansas Natural Resources Commission may allocate the available water from the stream among the uses of water affected by the shortage of water in a manner that each of the needs affected by the shortage of water may obtain an equitable portion of the available water.
(2) Subject to the preferences and reserved uses stated in this section, if the commission allocates water under subdivision (a)(1) of this section, the commission shall give preference for water uses and types of water diversions as stated in this subdivision (a)(2).
(3) The commission shall allocate water for water uses in the following order of priority: Agriculture;
(4) Industry;
(5) Minimum streamflow;
(6) Hydropower; and
(7) Recreation.
(8) In allocating water under this section, the commission may consider the use that each person involved is to make of the water allocated to that person.
(9) In making allocations of water under this section, reasonable preferences shall be given to different uses in the following order of preference: Sustaining life;
(10) Maintaining health; and
(11) Increasing wealth.
(12) Water needs shall include domestic and municipal water supply needs, agricultural and industrial water needs, and navigational, recreational, fish and wildlife, and other ecological needs.
(13) The following priorities shall be reserved before allocation under this section: Domestic and municipal domestic; and
(14) Federal water rights.