The Hawke's Bay Regional Investment Company faced a mixed reaction to its news that enough water had been bought by users to make the Ruataniwha dam viable.
Labour's local government spokeswoman and Ikaroa-Rawhiti MP Meka Whaitiri said the company needed to complete contract negotiations and produce updated figures before it could expect the public to have confidence in the project going ahead.
"HBRIC have burnt up a lot of goodwill with the public in the way they have managed this project so far," she said.
"We need sustainable water management for all users in the region but so far many more things have gone wrong rather than right with Ruataniwha."
Green Party water spokeswoman Catherine Delahunty said HBRIC should "dump the dam proposal" as it had barely scraped together enough interested farmers to use the scheme.