The council's proposals were to treat sewage to a higher level, then put the wastewater back into waterways. Land-based treatment would have been expensive, with the result less certain in the central plateau's cooler temperatures.
The Environment Ministry was looking for a "step change" - to land-based treatment. It didn't approve that part of the proposal, which reduced the total funding available.
However both Waiouru and Ōhakune have improved their wastewater going into the river. That, kilometres of fencing, and a million trees have reduced E. coli in the Whangaehu by about 10 per cent.
For E. coli it was the most improved river in the Horizons Region last year, and the fourth most improved in New Zealand, winning a Morgan Foundation River Award in November.
Other "pollution" of the Whangaehu is acidic water from Mt Ruapehu's crater lake. Downstream of Field's Track there is more life in the river, Rollinson said. Upstream most of the improvement effort will go into tributaries like the Tokiahuru, Makotuku and Mangawhero.
In a parallel move, good commodity prices are making farmers flush and they are looking to start a Mangawhero-Whangaehu Catchment Group.
Horizons' grant programme will allow local people to be a part of positive change for the river, Rollinson said.
Applications will be assessed on their environmental benefits, feasibility, community involvement and long-term benefits to the catchment. There is also likely to be a strong preference for "on the ground" work.
Successful groups will be able to get support and technical advice from Horizons.
++Applications for the Whangaehu Catchment community grants close at 4pm on October 23. Information and application forms are available on the grants and sponsorship page at www.horizons.govt.nz.