The Tasman District Council has given its consent for the proposed Waimea Community Dam, says Irrigation NZ.
The irrigation industry group said the dam would address the long-term future of the region by guaranteeing surety of water for urban residents, commercial users and irrigators.
The challenge would be funding its construction, it said.
"To get this project off the ground there needs to be an appropriate split of public-private financing which adequately reflects the public benefits of the dam," said Irrigation NZ chairwoman Nicky Hyslop. Plans for the dam arose after drought affected the region in 2001.
Separately, Primary Industries Minister Nathan Guy said a report had been commissioned to examine the potential of water storage and infrastructure in Northland.
The study will look at the potential demand for irrigation water and ways to improve management and use of current available water resources.
The ministry has committed $75,000 towards the study, which is expected to be completed by September.
Northland has had extreme dry spells over the past two years.