A major infrastructure project to build a 20-hectare water reservoir near Carterton has taken a significant step forward, with Carterton District Council securing $20 million in loan funding from the Government’s Regional Infrastructure Fund. The total project cost is budgeted at $25 million, with the Council contributing $5 million in co-funding.
The reservoir will support Waingawa Industrial Park — a major regional employment hub located on the boundary of Masterton and Carterton. The park is home to water-intensive industries such as food processing and manufacturing and is strategically positioned next to State Highway 2, the Wairarapa rail line, and key water infrastructure.
The reservoir will initially store up to 500,000 cubic metres of water, with potential expansion to 1 million cubic metres, and will support irrigation for surrounding pastoral land. The project is expected to enable higher-value agricultural production, improve drought resilience, and stimulate economic growth through both existing businesses and new industries attracted to the region.
An initial loan of up to $3 million from the Regional Infrastructure Fund will support detailed design, consenting, governance development, and community and iwi engagement. A further $17 million loan will be available for construction activities once a final delivery model is confirmed.
Regional Development Minister Hon Shane Jones said the reservoir was a game-changer for the Wairarapa.
“Water resilience has been identified as a regional priority for Wairarapa. A lack of water security is holding back development and limiting current land-use options.
“The reservoir is game-changing for this region and will be key infrastructure for Wairarapa’s resilience to extreme weather, including drought.
“This investment in water infrastructure aligns with the Coalition Government’s Going for Growth strategy and its objective to double exports by 2034.”
Hon Ron Mark, Mayor of Carterton, said the funding marked a turning point for the region.
“This project represents a once-in-a-generation opportunity to turn decades of discussion into delivery, and I thank the Government for recognising its potential.
“With their support, Carterton is leading the way — transforming vision into infrastructure that will benefit not just our district, but the entire Wairarapa and the Wellington region as a key economic and infrastructure asset.”
The project is a collaboration between Carterton District Council and central government, including the Ministry of Business, Innovation, and Enterprise, with support from iwi partners, WellingtonNZ, and Greater Wellington Regional Council.
It supports the Wairarapa Water Resilience Strategy, which aims to future-proof the region’s economy and communities through sustainable water use in the face of climate change and growth pressure.