Department spokesman Martin Workman said the project was chosen to feature in the video because it was "a wonderful example of passionate Kiwis taking action to improve freshwater health in their community".
"The Ministry for the Environment is celebrating projects across the country that we support through environmental funding, and that exemplify grass-roots action, in the hope to inspire others."
The Wanaka Water Project received funding from the central government Freshwater Improvement Fund (FIF) to improve freshwater management and was the only project funded in the Otago region.
Project manager Megan Williams said it included three streams of work: stormwater testing, riparian planting along waterways and developing a community catchment plan.
The outcomes from the project would improve and maintain the long-term health of the wider Upper Clutha catchment area including Lake Wanaka, Lake Hawea and the Clutha, Hawea and Cardrona Rivers, she said.