The Government will loan $2 million from the Regional Infrastructure Fund to support pre‑construction work on a proposed replacement of Falls Dam near St Bathans.

Associate Regional Development Minister Mark Patterson said the 90‑year‑old dam supports about 8,000 hectares of irrigated land across horticulture, viticulture, and sheep and beef farming, but is nearing the end of its life and “failing to deliver enough irrigation during dry years.”

The loan goes to Manuherikia River Limited (MRL), which will match it with $2 million of its own. The pre‑construction programme covers regulatory requirements and consenting, engineering and detailed design, procurement planning, updated construction cost estimates, and financing options. The work is expected to take around two years.

Patterson framed the planning as groundwork for longer‑term water security, saying a new dam could store winter and spring flows to provide more reliable supply and support shifts to higher‑value land uses.

Today’s announcement funds planning only. There is no commitment yet to build a replacement, and the Government has not released loan terms or an overall project cost. Environmental effects and consent conditions will be tested through the process MRL is about to start.