"The Governor has given assent to the bill which was passed by the assembly on February 27," an official from Legislative Affairs Department told PTI.
The new Act will replace Gujarat Irrigation Act, 1879.
Opposition Congress and Gujarat Parivartan Party (GPP) had opposed the bill and Congress MLAs had walked out of the assembly, terming it the bill as anti-farmers.
Among other things, it provides for appointment of Canal Officers with wide powers, including the power to even detain a person if he/she violates the Act.
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Penalties include imprisonment upto six months or fine upto Rs 10,000.
The main objective was to increase the "performance efficiency of irrigation schemes", Water Resources Minister Babu Bokhiria had said while introducing the bill.
Former Chief Minister and GPP leader Keshubhai Patel had slammed the bill, especially the "arbitrary" powers of Canal Officer. "This bill brands farmers as thief," he had said.
A Congress delegation led by Leader of the Opposition Shankarsinh Vaghela had met the Governor and requested her not to clear the bill. Congress has warned of an agitation over the issue.