"There has always been some change and that's a healthy thing in a democracy," he previously said.
Those opposed to the dam were thrilled as news spread.
Green Party candidate Chris Perley felt it was inevitable.
"I am generally so happy as the first step was Andy resigning from HBRIC and now with him going Hawke's Bay will be in a totally different place."
"We will be able to work together and move towards a higher value of land use which will be better for the economy, community and environment."
He said it was simply a great.
Political analyst Simon Lusk was also thrilled by the announcement and said the resignation came as fantastic news for the ratepayers of Hawke's Bay.
"It will be welcomed by all those who have attempted to deal with the HBRC on a rational basis in the last few years as it means there will be a new chief executive who may actually listen rather than being a complete waste of time to attempt to work with," Mr Lusk said.
Dam supporters were less enthused by his resignation. Federated Farmers president Will Foley said Mr Newman was a great asset to Hawke's Bay and the council.
"It is a bit of a shock and I am interested to know why he actually made his decision as he served the council and the region well."
With regards to the proposed water storage scheme, Mr Foley said he wasn't too concerned yet as felt HBRIC was more responsible.
"Blair has taken over the top role there well and he is very capable. I don't think this will change anything to the dam and I think we will just have to wait for the court case."
He said it was a waiting game and the biggest thing for him now was hanging on for outcome.