Timaru still wants water from the Waitaki River as part of a new irrigation scheme costing up to $200 million and irrigating up to 40,000ha.
The Meridian Energy Ltd-South Canterbury Irrigation Trust Hunter Downs irrigation scheme has been granted resource consents by Environment Canterbury (ECan), subject to settling three issues, to take and use up to 20.5cumecs from the Waitaki River at Stonewall, Ikawai.
The scheme would bring significant economic and social benefits, including up to 1200 new jobs, a 9.6% increase in regional output and more than $117 million a year of added value being generated for the region, through a lift in productive capacity on and off-farm.
Most of the land to be irrigated would be in the Waimate district, but some water would be taken north across the Pareora River for irrigation in the Timaru district.
However, the Waitaki catchment water allocation regional plan gives priority to use of water within the catchment, defined by the Waimate, Mackenzie and Waimate districts.
That was one issue the chairman, Prof Peter Skelton, of the ECan panel which granted the Hunter Downs resource consents, wanted settled.
He has reconvened the hearing into the resource consents to clarify that.
The panel started sitting in Christchurch on Tuesday and continued yesterday to reach a final decision.
Legal counsel of Meridian and the trust Jo Appleyard told the panel there was no reason why the Timaru area should not be included as part of the scheme.
The allocation plan did not preclude that from happening.
Evidence which would be presented at the hearing would show that in-catchment needs for water could be satisfied, along with Timaru's.
"There is no basis for referring to the plan as a reason why the Timaru area should be excluded from the Hunter Downs [40,000ha] command area," Miss Appleyard said.
Irrigation North Otago was likely to be the entity which would make new applications to take water for more irrigation of the southern side of the Waitaki River in the Waitaki district.
However, there was also nothing to prevent a new applicant, or existing irrigation schemes, from seeking more water.
While the plan did not make a specific allocation of water for use in the Timaru district, neither did it preclude that.
Sufficient water was available for an entity like Irrigation North Otago to apply, as well as the proposal to provide water to the Timaru district, she said.
Other issues being considered by the panel are whether the 250 million cu m of water a year wanted for the scheme was necessary and whether the 10-year period in which the consents would lapse was appropriate.