After what Cr Duncan Butcher called an unusual process, the hearing of a consent application by Tarras Water Ltd (TWL) closed in Dunedin yesterday.
With submitters being heard before the applicant had completed giving evidence, frequent adjournments and one submitter clearing concerns with the applicant in the middle of it, he called it a "long hearing".
However, Cr Butcher said a "satisfactory situation" had been reached and he hoped a decision on the $70 million, on- and off-farm irrigation scheme would be reached before Christmas.
Private negotiations between TWL and Contact Energy were carried out through most of the morning.
After being concerned about the impact the scheme would have on its hydro generation and the impact on any future projects, Contact reached agreement with TWL.
Conditions agreed included restricting water use between May 1 and August 31 and when flow levels at Contact hydro catchment sites are depleted.
Department of Conservation conservation officer Bruce Hill also found the hearing unusual, saying he believed it was the first application for resource consent in Otago supported by the Director-general of Conservation.
"I consider this to be a very significant milestone," he said.
The department's support was based on having current consent-holders who take water from the Lindis River either fully or partially surrendering their permits so no double-dipping of water would occur, and that about 1.5cumecs of water would be left in the river.
Technical support officer Murray Neilson said increased water flows in the Lindis would bring benefits for the longfin eel population.
Contact is also required, by conditions of its current resource consent, to investigate options to aid effective eel passage past the Roxburgh, Clyde and Hawea dams by 2012, and have a plan implemented by 2017, he said.
This meant a larger number of eels would be seeking suitable habitats above the Roxburgh and Clyde dams from 2017.
Mr Neilsen believed the Lindis catchment was a suitable habitat, but the Lindis River would need to flow through its length for eels swimming upstream to access it.