The Otago Regional Council says that could be because of the severity of the issues facing other districts and the urgency with which they need to be addressed, compared with the issues facing Otago.
Prime Minister Bill English and Environment Minister Nick Smith yesterday announced $44million for 33 freshwater improvement projects.
Wanaka-based Te Kakano Aotearoa Trust is expecting to receive $375,000 to help fund a community management plan for Lake Wanaka.
Te Kakano was the only application based in Otago to receive a grant in this funding round.
The grants are the first portion of funding from the Government's $100million freshwater fund announced last year.
Te Kakano's funding is unconfirmed as the trust, a non-profit trust with a community native plant nursery which supported native habitat restoration, was still negotiating with the Ministry for the Environment.
Trust spokeswoman Megan Williams said it had until next Wednesday to ''reframe'' its application and it would be another three or four weeks before it knew for sure if it had been successful.
''Obviously, it's good news because they have included us in the press release, but we are still in negotiations with the MFE.''
Until a decision was made, Ms Williams said she did not want to talk about the submission or the planned project.
The trust's application was supported by the Otago Regional Council and the Queenstown Lakes District Council.
Other successful applications included $5million for Environment Southland to establish a buffer around the Waituna Lagoon and $265,000 was given to Beef + Lamb New Zealand to improve the quality of water catchments within beef and sheep farming areas, which included areas in Otago.
Regional council chairman Stephen Woodhead said he was pleased by the announcement about Te Kakano. It showed what could be achieved when councils and community groups worked together.
The fact Otago did not get much funding compared with other areas could be down to the severity of the issues facing other districts, he said.
''... some of the issues faced by other regions are of a different nature to what we face.''
Some of the council's scientific work on lake snow and its environmental monitoring would link with the trust's proposal.
Mr Woodhead said the council would have made or supported other applications if they focused on water quality issues that fitted the funding criteria or were serious enough.
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Joke. Here is where the tourists are coming to see our beautiful lakes and river scenery and experience for real their character. So we leave it to the locals to ensure a tourist mecca um that is a kill the golden goose scenario.