"This is now the number one region in the country for sheep and beef in New Zealand so improving the productivity of farms, particularly hill country farms, is a priority," Mr Guy said.
He said the 2008 drought had put a spotlight on the effects farmers face without enough water.
"Dams and some smaller creeks and streams dried up and farmers were restricted as to where they could graze stock."
A total of 11 farms will take part including two from Northland, one in the Bay of Plenty, two on the East Coast, one in Marlborough and one in Canterbury.
"We know that the top 20 per cent of red meat farmers achieve returns approximately four times more than those of the average red meat farmer, irrespective of land class and location," Mr Guy said.
"This shows the potential on offer, and the importance of sharing innovative ideas and good practice."
Beef + Lamb New Zealand's website states stock who drink reticulated water are more likely to have an increase in milk production and weight gain. The increased milk production is likely to lead on to "faster growing, bigger offspring", while weight gain will "translate into better returns at the farm gate".