If there was a case for a national approach, which is what the council was advocating, he suggested it deal with a range of "very basic issues" such as the kaitiaki status of tribes in relation to specific waterways.
That is because the Government would still need to deal directly with smaller groups as each hapu or iwi faced different circumstances in each region.
"Tuwharetoa already owns the bed of Lake Taupo. That puts them in a very different position in relation to negotiating over water rights to people who don't have that kind of position. It's not possible to get everyone in the same bag," Sir Michael said.
Prime Minister John Key has delayed the sale of Mighty River Power until next year over the issue and will consult iwi affected by the sale.
Sir Michael said cutting out the council might not be the wisest thing to do: "The Crown seems to have gotten itself into a difficult position saying it won't deal with the council. I think at some point there has to be some level of engagement. I think in a sense what I'm saying is there is a need for compromise all around otherwise it will get very difficult."
Summit speakers include Dr Ranginui Walker, Maori Council co-chairman Sir Eddie Durie, and Sir Tumu te Heuheu who will givean update on the work the iwileaders group has completed onwater with the Government.
King Tuheitia's spokesman Tuku Morgan reiterated that the point of the hui was to reach a unified Maori position on water. "This is our time and our space and our opportunity to sort out a cohesive strategy."
A spokesman for Watercare Services, the council-controlled organisation which provides water to Auckland, said he did not expect any potential settlement to affect the 15 per cent of water it took from Waikato River.