Two large dams in Central Hawke's Bay could irrigate, power and entertain the region.
The Hawke's Bay Regional Council's water storage scheme was aimed at increasing irrigation in the Ruataniwha plains, which could be worth $500 million a year.
The feasibility of two dams was now being investigated for the proposed $200 million project instead of the six dams originally planned.
Both dams would have the potential for turbines to produce electricity, and there was already interest from Centralines in the potential for hydropower from the sites.
A council spokesman said that would help with the cost, and building two big dams instead of six was an "economy of scale" with less infrastructure being built. It would cost less, and would still irrigate 90 per cent of the basin.
The sites proposed were on the Makaroro Stream, northwest of Tikokino off SH50, and on the Makaretu Stream, west of Takapau near SH2.
A social advantage of two large lakes was the potential for recreational use, the spokesman said.
The council aimed to have the feasibility study completed in 18 months. "This project needs to keep moving as it has the potential to benefit not only Central Hawke's Bay, but the whole region," council chairman Fenton Wilson said.
Hawke's Bay farmer Sam Robinson, who chaired the Leadership Group advising council, said it was to the credit of the council that it was thinking long term and this would make a huge difference to the region.
"It's not just for the farmers, there are the downstream advantages in harvesting and processing."
While there was likely to be some increase in dairy farming, many farmers were talking about crops, and there was potential for high-value vegetables and seeds to be grown, Mr Robinson said.
$200 million dams plan for Central Hawke's Bay
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