A controversial plan to dam Central Otago's Nevis River for hydro power has been blocked by the Government.
Environment Minister Amy Adams said today that a dam or diversion on the lower Nevis River would have major negative effects.
"This has been a difficult decision and one that I have given a great deal of thought and consideration.
"I have decided in favour of a unique native fishery and an unusual river feature in agreeing to amend a water conservation order to add outstanding characteristics and prevent damming on the Nevis River.
"The benefits of preserving the option of a dam on the Nevis River, which is a tributary of the Kawarau River, are relatively insignificant in terms of New Zealand's overall electricity generation capacity."
The seven-year wrangle began in 2006 when the New Zealand and Otago Fish and Game Councils sought an amendment to the existing water conservation order on the river.
They wanted the potential for dams to be ruled out but Pioneer Generation, which had plans for a hydro dam on the river, wanted the option left open.
Two of three Environment Court commissioners recommended a ban on damming and the final decision was left to Ms Adams.
