$25M Carterton Reservoir to Boost Wairarapa’s Economy and Water Resilience

A major infrastructure project is poised to reshape Carterton and the wider Wairarapa region, with the announcement of a new 20-hectare reservoir that promises to boost regional resilience, economic productivity, and land-use opportunities. Regional Development Minister Shane Jones unveiled plans for the reservoir this week, hailing it as a “game-changer” for both local communities and industry. The reservoir, to be located near Carterton, will have a capacity of up to 1 million cubic metres of water. It is intended to serve a dual purpose: supporting industrial development at the Waingawa Industrial Park and supplying irrigation to surrounding agricultural land — both of which are essential to unlocking the region’s full economic potential. Initial $3M Loan Secured, With $17M to Follow for Construction The project is being backed by the Government’s Regional Infrastructure Fund, which has granted Carterton District Council an initial loan of $3 million to undertake planning, design, and consenting work. A further $17 million will be available for the construction phase, contingent on the final project model. The overall project cost is budgeted at $25 million, with the council contributing $5 million in co-funding. “This investment in water infrastructure aligns with the Coalition Government’s Going for Growth strategy,” said Minister Jones. “Our goal to double exports by 2034 depends on regional areas like Wairarapa having access to the critical infrastructure that supports productive land use and job creation.” Water Security: A Bottleneck for Growth Water resilience has long been flagged as a limiting factor in Wairarapa’s development. Periodic droughts and inconsistent water supply have hampered agricultural potential, investment, and industrial operations. The new reservoir is expected to provide a reliable and consistent source of water, addressing these challenges head-on. “The lack of water security is holding back land-use options and limiting the pace at which Wairarapa can grow. This reservoir is a strategic response to that problem, enabling a future-proof solution to drought and extreme weather,” Minister Jones added. Economic and Agricultural Uplift The impact of the reservoir is expected to be felt across multiple sectors. At the Waingawa Industrial Park, the improved water supply will attract new industries and support the expansion of existing ones. Across adjacent farmland, the project is projected to result in a 50% increase in crop yields, thanks to improved irrigation. Significantly, the availability of consistent water will enable farmers to transition from pastoral farming to high-value horticulture, which could dramatically improve revenue streams and add new skills and jobs to the local workforce. A Catalyst for Regional Development The reservoir investment is more than a local initiative — it forms part of a wider government vision for regional New Zealand. The Going for Growth economic strategy seeks to remove development barriers across rural areas by investing in infrastructure that supports innovation and export growth. “This is not just a water tank in a paddock,” Minister Jones explained. “It’s a strategic tool to unlock economic, environmental, and recreational value for Carterton and beyond.” Next Steps and Timeline Preparatory work funded by the initial loan will focus on site assessments, design specifications, and environmental consents. Once approved, construction is expected to begin with the support of the second tranche of government funding. The council, which is co-funding $5 million of the project, has welcomed the investment and views the reservoir as essential to the region’s future prosperity. Conclusion As Wairarapa continues to face climate variability and increasing demand for both agricultural and industrial development, the Carterton reservoir marks a bold step toward resilience and sustainable growth. With strong government backing and clear economic benefits, this project is set to deliver long-lasting returns for generations to come.