Section 37 of the Principal Act is amended as follows:(a) by omitting subsections (2) and (3) and substituting the following subsection:(2) The application (a) must be in accordance with section 12A ; and(b) is to be made jointly by persons who hold the majority of licences granted to take water from the water resource or water resources to which the plan relates; and(c) must recite an agreement by those persons to create a water entity; and(d) must include particulars of (i) the water entity or proposed water entity; and(ii) the functions for which the water entity would be responsible; and(iii) the proposed arrangements for funding the water entitys administration.(b) by omitting from subsection (4) "an application under subsection (1) " and substituting "the application" .