There’s something crucial flowing through the heart of our region’s economic future – water. As we head into 2025, water management will dominate council decisions and community discussions, and rightly so.

The Heretaunga Plains, our region’s economic golden goose, generates $43.4 million in GDP for every million cubic metres of water used. As a food bowl that feeds not just New Zealand but the world, protecting and nurturing these fertile plains isn’t just an option – it’s an economic imperative.

But we’re facing a critical challenge. In Hastings current water abstraction is capped at 90 million cubic metres annually, yet our growing population and changing climate paint a concerning picture.

By 2040, we’re looking at a potential shortfall of 25 million cubic metres between demand and supply, expanding to 33 million by 2060. For the district where water drives our economic engine, this gap demands immediate attention.

Regionally if a reduction in water use for agriculture and horticulture is enforced the estimated impact would be a reduction in GDP of up to $70 million by 2045.

The solution isn’t simple, but it is achievable. A proposed 27 million cubic metre dam by the Hawke’s Bay Regional Council located on a tributary off the Ngaruroro could bridge this gap.

This isn’t just about storing water – it’s about strategic release during low-flow periods, supporting our aquifers, and maintaining the health of our waterways while enabling sustainable growth in high-value horticulture and industry.

Pre-feasibility studies show this project is technically, environmentally, and commercially viable. Yes, there’s a significant investment required – $225 million in construction costs plus $6 million in annual operations. But consider the alternative: constraining the growth of industries that form the backbone of our regional economy.

Our horticulture sector alone employs nearly 7,000 people, with 85% of these jobs in Hastings. Over the next five years, we’re expecting another 1,800 jobs in this sector. Add to this the other water-dependent industries identified as key growth drivers – forestry and wood processing, meat, food and beverage, manufacturing, and construction services – and the importance of securing our water future becomes crystal clear.

However, the dam is just one piece of a larger puzzle. We’re seeing innovative solutions emerge across the region.

The successful grower-led shared water use plan in Twyford launched in 2016 shows how the irrigator and regulator can work together for a practical and pragmatic solution.

Heretaunga growers are now funding a broader irrigator scheme, demonstrating their commitment to efficient water management.

The Hawke’s Bay Regional Council’s consideration of water allocation must balance the needs of all users – from residents to the primary sector and processing facilities. This isn’t about choosing between economic growth and environmental protection; it’s about finding smart solutions that deliver both.

The proposed dam would fill during winter months, releasing water back into the Ngaruroro River and lowland streams when needed most. This isn’t just about water storage – it’s about active management of our most precious resource to support sustainable growth while protecting our environment.

Another huge decision for councils this year will be about what water delivery model (drinking, waste and storm) they will put forward to the Government, with a deadline of September 5. The councils are exploring a regional delivery model as well as continuing individually – either as status quo or as council controlled entities.

The Hastings council is several steps ahead of the others in regards to investment in water infrastructure, having spent over $100 million due to the 2016 Havelock North water crises.

And … in a need to focus on the on the bigger picture Hastings and Napier Councils are developing a Future Development Strategy for the next 30 years, identifying areas for new housing and industrial zones. Water security underpins all of this planning.

This isn’t the time for ‘nice to haves’ – we need focused investment in critical infrastructure that supports our region’s economic future.

The message is clear: water security is economic security. Every cup of water flowing through our region supports jobs, drives growth, and maintains our position as one of New Zealand’s most productive food-growing regions. The solutions are complex and require significant investment, but the cost of inaction would be far greater.

Our region’s future prosperity depends on getting this right. The time for action is now.