The Resource Management Act is to be changed to allow key freshwater management decisions to made by regional groups made up of people and organisations drawn from local communities, Environment Minister Amy Adams says.
That collaborative approach was one of the recommendations of the long running Land and Water Forum which concluded its work with a third and final report last year.
Ms Adams said it was hoped the new approach would reduce the challenges and litigation that often followed the introduction of council drafted water management plans.
It would be up to local authorities to whether they chose to pursue the new collaborative approach or stayed with the current "Schedule 1" planning process.
However, Ms Adams yesterday confirmed that if councils chose the new approach there would be limited opportunity to appeal planning decisions in the Environment Court.