Govt Launches Consultation to Overhaul NZ’s Freshwater Regulations

In a sweeping move to reform how New Zealand manages its freshwater resources, the Government has opened public consultation on major changes to the country’s national direction under the Resource Management Act (RMA). The changes, jointly announced by Agriculture Minister Todd McClay and Associate Environment Minister Andrew Hoggard, are designed to simplify current rules, reduce regulatory burdens on rural communities, and deliver better environmental outcomes through a more practical, regionally adaptable framework.

Three Packages, Twelve Amendments, Four New Instruments

The consultation revolves around three key policy packages—infrastructure and development, the primary sector, and freshwater—and proposes amendments to 12 existing national direction instruments and the creation of four new ones.

National direction instruments sit under the RMA and provide guidance to local councils on how to create and implement their own environmental rules and plans. These new proposals aim to overhaul the current top-down model, which has been widely criticized for being too rigid and disconnected from the realities faced by rural New Zealanders.

A Turning Point After Otago Dispute

The Government’s announcement follows its controversial but decisive intervention in 2024 to halt the Otago Regional Council’s new freshwater plan. That plan, according to Ministers McClay and Hoggard, would have imposed “unnecessary costs and uncertainty” on rural landowners and growers.

“Regional councils must work within national direction that is fit for purpose, not pursue agendas that undermine local economies or the people who rely on the land,” said Mr. McClay. “This is a key step toward restoring balance in how freshwater is managed across the country and ensuring the interests of all water users, including farmers, growers, and rural communities, are properly reflected.”

Replacing Te Mana o te Wai and Streamlining Regulation

A centerpiece of the proposed changes is the replacement of the National Policy Statement for Freshwater Management 2020 (NPS-FM) and the National Environmental Standards for Freshwater (NES-F). These frameworks have, in recent years, become flashpoints of tension between environmental regulators and the rural sector.

At the heart of the current NPS-FM is Te Mana o te Wai, a guiding principle that elevates the health of freshwater above all other considerations. While originally intended to encourage sustainable water management, it has, according to Mr. Hoggard, been used in ways that “sideline the very people working to improve water outcomes.”

“The current rules are too complex, too expensive, and too often ignore the practical realities of landowners,” he said. “We’re fixing that.”

Key Reforms Under Consultation

The proposed reform package includes:

• Replacing the NPS-FM 2020 and NES-F with a new, simplified framework.

• Providing councils with greater flexibility to balance environmental protection with local economic impacts.

• Extending timeframes for achieving water quality targets when needed, especially in rural or naturally pristine catchments.

• Eliminating unnecessary consents for low-risk land use practices, such as crop rotation and commercial domestic vegetable growing.

• Supporting water storage infrastructure to improve long-term water security.

• Enhancing protections for drinking water sources to ensure safe, reliable water supplies.

• Reviewing synthetic nitrogen fertiliser regulations, with a focus on streamlining data collection requirements.

Focus on Practicality and Local Adaptability

These reforms reflect a broader philosophical shift: away from centralized, one-size-fits-all mandates and toward regionally tailored, outcome-based solutions. Both ministers stressed that these reforms do not represent a weakening of environmental protections but rather a realignment of regulatory tools with community needs.

“Farmers aren’t asking for a free pass—they’re asking for a fair go,” said Mr. McClay. “We won’t stand by while councils weaponise Te Mana o te Wai to push ideology over common sense.”

Mr. Hoggard echoed that sentiment:

“We’ve heard from farmers across the country that nationally determined bottom lines are not always appropriate and can be unachievable even in catchments dominated by native bush. They also take away flexibility from local communities to achieve the environmental outcomes they want.”

Public Engagement Open Until 27 July 2025

The Ministry for the Environment has now launched public consultation via its ‘Have Your Say’ website, inviting feedback from all New Zealanders. Submissions will be accepted until 27 July 2025. This is the first phase of a two-stage reform process. Public input will help shape a formal draft of the proposed changes, expected to be released later in the year.

The Government is positioning these reforms as essential not only for the health of New Zealand’s rivers, lakes, and aquifers, but also for the sustainability of its agricultural sector and the resilience of rural communities.

By proposing to simplify regulation, remove red tape, and reintroduce flexibility at the local level, the Government is betting on a collaborative approach that puts both environmental and economic wellbeing at the center of freshwater management.