The stadium-based 2018 ENZED Jetsprint Stadium Cup requires two million litres of water.
Event organisers Jetsprint BOP and Bay Venues said they worked with local water and pumping specialists on a range of options.
In collaboration with Tauranga water management staff, a solution was found that would enable the event to reuse and upcycle stormwater from a large nearby storage pond, the organisers said.
It was a low impact, sustainable and cost-effective water source that met event requirements and supported the city's water-saving efforts, "while not having any negative environmental impact".
Bay Venues commercial manager Ervin McSweeney said during a feasibility exercise, landscape architects and ecologists were consulted with to ensure there would be no damage to the local ecology "most specifically, the surrounding wetlands".
"This is a great long-term option for this event as the city clearly will require all supplies of potable water to satisfy the growing residential population in the foreseeable future."
The water would be piped across to the stadium where a specially-designed pumping system would fill a purpose-built aqua track.
The pumping system recycled and filtered the water through a series of pumps, before pumping it back into the main track for the duration of the races.
Jetsprints BOP event director Matthew Minnell said it was a challenge to identify a suitable water source that met all the criteria.
"It was really important to us to not draw on water from the town supply or any potable water source, due to the water restrictions currently in place.
"However, we also need to have water that meets the water standard requirements for jetboat engines. That means no saline and no solid matter in the water."
The water also had to be drawn from a source that flowed at a required volume and rate needed to retain water quality and water levels for the aqua track.
"Last, but not least, we need to make sure that the water is coming from a safe source so that we can protect the health of our race teams and rescue crews," Minnell said.
After next weekend's event, the water will be filtered to remove pollutants before being returned to the stormwater management system.
In December, Tauranga imposed water restrictions for the first time in 17 years.
Those restrictions have not been lifted since.
In the two weeks leading up to the restrictions being imposed, the city's daily water use increased by more than 10 per cent from about 46 to 51 million litres.
It was up by about 10 million litres from the same time the year before.
The 2018 ENZED Jetsprints Stadium Cup is on next Saturday at ASB Baypark in Mount Maunganui from 5pm-10pm. Gates open from 3pm.