"The region is vulnerable to droughts to floods, so better access to water will give landowners greater options to use their land, develop new markets and maintain and grow a skilled workforce," says Jones.
National lobby group IrrigationNZ has applauded the funding.
Its chief executive Elizabeth Soal says if done the right way – with sound technical, environmental and stakeholder guidance – water storage and well-planned irrigation infrastructure can lead to very effective and efficient use of water for the benefit of all.
"Access to reliable water can make a vital contribution to local communities, economies and can significantly aid job creation," says Soal.
It says the project is likely to deliver similar benefits as the development of water storage in Kerikeri in the 1980s.
An impact assessment found after 30 years of the Kerikeri scheme operating it had created 1300 additional jobs and was adding $106m per year to the Northland economy, with 6.5 per cent of all jobs in the Far North District due to the Kerikeri scheme's operation.
"If these infrastructure projects result in secure water supply for communities, and outcomes are sympathetic to the environment and fair for all stakeholders, then they can lead the way in creating a national strategy to carefully use water, a precious resource, to help New Zealand's regions flourish and develop resilience in the face of climate change," says Soal.