The report, one of two released by the council this week, looks into what "environmental actions for freshwater" could mean for rural businesses.
An industry advisory group made up of Beef + Lamb New Zealand, Deer Industry New Zealand, the Foundation for Arable Research, DairyNZ, Horticulture NZ, the Central Otago Wine Growers Association and the Ministry for Primary Industries informed the report.
Author E M Consulting director Emma Moran said how water quality and quantity issues were addressed over the next decade could affect each of the six sectors.
Most rural businesses had not been set up to fully account for their use of water and so limits on this "natural capital" tended to change their profitability, she said.
The impacts would occur through a transition phase, which could persist for years.
"Overall, the greatest impacts can be expected to occur when a rural business is unable to adjust to change, for whatever reason.
"The enterprises and production systems most at risk will vary by environmental action and a business’ location."
Businesses facing an elevated risk included deer enterprises within a drystock farm, seed production and winter forage crops on arable farms, sheep and beef farms with large cattle enterprises, small sheep and beef finishing farms, farms with border dyke irrigation, vegetable growers and smaller vineyards — "and any business without reliable access to water", she said.
In a statement, the council said the first report, "Otago’s Rural Businesses and Environmental Actions for Freshwater", and a second one, the "Otago Region Economic Profile for Land and Water", were presented to councillors at an environmental science and policy committee workshop earlier this month.
Council senior economist Dr Ann Yang said the second report highlighted the land and water used by the primary sector, which covered about 70% of the land area in the region.
Dr Yang called them both "watershed reports" that provided the council with new understanding.
