A proposal by Otago Regional Council chief executive Graeme Martin on how the council could assist in funding bulk-water infrastructure in the region is to be developed.
Development of new irrigation, considered very important to the region, had progressed well, but there were barriers to the funding and construction of these developments, Mr Martin said.
"Irrigation needs to be continued, developed, modernised and expanded to support community wellbeing, including enhancing the region's economy."
Otago was in the unique situation of having several irrigation proposals, with consents for water takes and development plans for which consents were likely to be applied for and granted, Mr Martin said.
"Public grants are a relevant source of funding where the scheme works will deliver tangible public benefits not otherwise achievable."
Regional councils could "step up to the funding plate" using the Local Government Act special consultative procedure to amend its long-term plan and establish a funding policy, he said.
Capital grants and equity investment could be made if they could not be attained elsewhere.
"Looking into the future, council has the potential to make modest and prudent investments in bulk rural water infrastructure."
Cr David Shepherd said he was delighted by the report, discussed at a recent council meeting, as in his personal experience developing irrigation was a "costly and tortuous" path.
"It is treacherously difficult for those involved. Ultimately, this report could lead to the regional council furthering irrigation in the province."
These initiatives were important for stock water, town supplies and firefighting - "the whole water package", he said.
"This council should be the last-resort loan partner. The community has to drive it themselves."
Cr Duncan Butcher said the council had been involved in the early stages by providing funding to communities to assess irrigation options in their areas through its bulk-water fund.
Just how the council could help them move to the next step still needed to be decided, he said.
The council approved recommendations for staff to prepare a report for council investment in assisting funding of bulk rural water developments and endorsed the convening of a seminar examining irrigation interests with Ngai Tahu Holdings Corporation and Kai Tahu ki Otago.
