However, the granting of resource consents for the Hunter Downs irrigation scheme, a joint project between Meridian Energy Ltd-South Canterbury Irrigation Trust, is subject to the settling of three matters - one of which is whether water should also be available for land in the Timaru district.
Trust spokesman Don McFarlane said yesterday the decision was "a positive step towards a long-awaited beneficial infrastructure development for the South Canterbury community".
The scheme would bring significant economic and social benefits, he said, including up to 1200 jobs, a 9.6% increase in regional output and more than $117 million per annum of added value being generated for the region, through a lift in productive capacity on- and off-farm.
While a final decision was not likely to be issued until after March, he described the proposal as "a workable solution".
The partners in the scheme applied to Environment Canterbury (ECan) in 2006 for resource consents for water for the scheme.
The applications were heard at the end of 2007, but a decision was delayed while 56 other resource consents for water from the lower Waitaki were heard.
A decision on those and Hunter Downs was to have been released before the end of October, but was delayed while the hearings panel grappled with several issues.
Yesterday, Prof Peter Skelton released a minute to parties in which he said: "We [the panel] have concluded consent should be granted for this scheme subject to three matters . . ."
The approval will not be for what Hunter Downs originally sought.
It wanted to be able to take water down to a minimum flow of 100 cumecs in the lower Waitaki - below the 150 cumecs minimum flow set in the Waitaki catchment water allocation regional plan in 2005.
Prof Skelton said there was no need to provide for a minimum flow of 100cumecs to ensure Hunter Downs had a reliable flow of water.
Instead, he proposed a cut-off of 152cumecs, decreasing the irrigation take from 175.5cumecs.
"The purpose is to protect the minimum flow for the river provided for in the allocation plan at 150cumecs and also to protect existing consent holders who are reliant on water from the river," he said.
Prof Skelton was also not satisfied that the 251 million cubic metres a year annual volume sought by Hunter Downs was necessary.
The most contentious issue Prof Skelton wants settled before confirming granting the water involves land in the Timaru district which would be irrigated by the scheme.
The allocation plan did not include Timaru district as part of the catchment entitled to water from the lower Waitaki River.
Prof Skelton indicated the panel would be inclined to accept that argument, subject to hearing more evidence on the issue.
He has also called for more comment on whether the period to start the scheme should be the 10 years Hunter Downs requested, or a lesser period of seven years.
Responses have to be in by January 15 and, if necessary, the hearing will be reconvened into the Hunter Downs' applications on March 2 and 3 next year.
Mr McFarlane said the higher minimum flow proposed by Prof Skelton appeared to give Hunter Downs acceptable reliability.
Hunter Downs would respond to the other three issues raised by Prof Skelton.
Hunter Downs committee chairman Ian Moore said the community had driven the initiative.
There was still considerable work to be completed.
Further design and resource consents would be needed from the Waimate District Council for the construction of the project.
"The trust and Meridian will continue to work with the community to arrive at the best options to complete this development," he said.
