Water Allocation Policy and its Implications in the Waikato Region

The Waikato River is New Zealand's longest River, though relatively small on international scales. It drains the central North Island and has New Zealand's largest lake (Lake Taupo) at its headwaters. The upper reaches have sustained flows fed by large aquifers which are recharged by rainfall events providing relatively constant river flows, whereas the lower reaches respond more directly to rainfall events having more peaky flows after rainfall and extreme low flows during dry periods. Consumptive allocation from the river is relatively low with only about 3% of the mean annual flow being allocated. However, more than seven times the river's flow is allocated for non-consumptive purposes before discharging to the Tasman Sea. The majority of this non-consumptive allocation is for hydro power generation and as cooling water at both thermal and geothermal power stations which produce up to 25% of New Zealand's electricity. The upper half of the river has been heavily modified with the construction of eight dams for power generation. This has resulted in a succession of cascading dams replacing the previously uncontrolled river. The Waikato River also provides drinking water for Auckland City (NZ's largest city) and Hamilton City (NZ's 4th largest city). In recent years there has also been considerable growth in water requirements for pasture irrigation to support the intensification of dairy farming in the catchment. Operators of the power stations are concerned that any further consumptive allocation will further reduce their ability to generate electricity. The Waikato Regional Council, who is charged with managing the river and allocation of water, has recently set new rules for managing the conflicting allocation demands on the Waikato River. This has resulted in an end to further allocation of water where it results in a loss of water for electricity generation from renewable resources (fresh water and geothermal water). The exception to this is the prioritisation of water for municipal supplies ahead of other consumptive uses such as industries and irrigators.