"We are greatly encouraged by this initiative, and I would like to acknowledge the Hawke's Bay councils' constructive approach towards reform," Mahuta said.
"This funding contribution will progress the work already begun by the councils to increase Hawke's Bay's ability to address challenges facing three waters services."
Comment provided in a written statement by the chief executives from the five councils said:
"This review means we can fully evaluate the scale of capital, capacity, capability and operational challenges in front of us and identify the opportunities for us to work together to determine the best solution for the entire region."
The review began in February 2019 and has so far investigated the current state of stormwater, wastewater and drinking water in Hawke's Bay.
Preiliminary analysis of potential options has been made and key objectives set out.
The first phase of the review is expected to conclude by September 2020.
Completion of the review is expected in the second half of 2021 dependent on approval of councils and Government.
The statement said the review aligns with the region's focus on water safety, security, and planning from 2019-2022 which was agreed on by the Hawke's Bay Leader's Forum on November 25 2019.