The class 2 Volvo FE Series tanker, funded by the Clutha District Council and the National Rural Fire Authority, was handed over last week.
The Otago Rural Fire Authority is replacing water tankers in the Clutha district, where several are no longer fit for purpose.
Principal rural fire officer Stephanie Rotarangi said the Balclutha tanker needed replacing urgently as it was operating under major restrictions.
The new tanker, which could carry 7000 litres of water, was an ''essential piece of equipment'' for the fire service, she said.
Waihola would be next to get a new tanker.