shall give notice of such transfer to the tenants and lessees.  

3. Without derogating from the above provisions, upon the transfer of powers and responsibilities, Israel will cease to bear any financial responsibility regarding contracts of the Civil Administration and the Council will bear all financial responsibility for them, in accordance with Article XX of the Agreement ( Rights, Liabilities and Obligations ).
   
   

ARTICLE 40

Water and Sewage

On the basis of good - will, both sides have reached the following agreement in the sphere of  Water and Sewage:

Principles

1. Israel recognizes the Palestinian water rights in the West Bank. These will be negotiated in the permanent status negotiations and settled in the Permanent Status Agreement relating to the various water resources.
   
   
2. Both sides recognize the necessity to develop additional water for various uses.
   
   
3. While respecting each side's powers and responsibilities in the sphere of water and ewage in their respective areas, both sides agree to coordinate the management of water and sewage resources and Systems in the West Bank during the interim period, in accordance with the following principles:
   
   
1. Maintaining existing quantities of utilization from the resources, taking into consideration the quantities of additional water for the Palestinians from the Eastern Aquifer and other agreed sources in the West Bank as detailed in this Article.
   
   
2. Preventing the deterioration of water quality in water resources.
   
   
3. Using the water resources in a manner which will ensure sustainable use in the future, in quantity and quality.
   
   
4. Adjusting the utilization of the resources according to variable climatological and hydrological conditions.
   
   
5. Taking all necessary measures to prevent any harm to water resources, including those utilized by the other side.
   
   
6. Treating, reusing or properly disposing of all domestic, urban, industrial, and agricultural sewage.
   
   
7. Existing water and sewage systems shall be operated, maintained and developed in a coordinated manner, as set out in this Article.
   
   
8. Each side shall take all necessary measures to prevent any harm to the water and sewage systems in their respective areas.
   
   
9. Each side shall ensure that the provisions of this Article are applied to all resources and systems, including those privately owned or operated, in their

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