Minister of Agriculture David Carter said changes to the Community Irrigation Fund announced on Friday would "fast-track" the development of agricultural irrigation schemes.
The size of the fund will remain the same, but the criteria will widen to include funding for technical design work on schemes and money to train scheme developers in areas such as financial management and community and local government management skills, he said.
The Manuherikia Irrigation Co-operative Society's vice-chairman, Gary Kelliher, said any extra Government assistance was a help, but the changes would probably have little impact on the scheme planned by the society, as its plans were further down the track.
"I guess as we advance the design we have, there may be some extra funds for refining the design that could help us. I'll have to look into that."
The scheme would take water from Lake Dunstan, would cover about 3000ha and include the existing Manuherikia and Galloway irrigation schemes.
The main stumbling block to the scheme progressing, however, was "getting the big money sorted - raising capital that's affordable", Mr Kelliher said.
His comments were echoed by Tarras Water Ltd secretary John Morrison.
Tarras Water is the group behind a planned $36 million scheme that could cover 9000ha of land, with the water being used for irrigation, domestic and stock water, firefighting and frost-fighting.
"There may be some useful things in this announcement by the minister, but what Otago people, and Canterbury people, are really waiting for, is an announcement from the Government about capital funding.
"If they come to the party with some capital funding it'll be a much bigger celebration," Mr Morrison said.
Meanwhile, Irrigation New Zealand has welcomed the change to the funding criteria.
The reshape would remove significant stumbling blocks encountered in the early stages of developing sustainable community schemes, chairman Graeme Sutton said.
Mr Carter said getting an irrigation scheme started was a complex and time-consuming process.
The changes to the fund would speed up the process and improve management of the schemes.
