Deputy Prime Minister Winston Peters says the controversial Waimea Dam project rejected by Tasman district councillors would have been of benefit to the region.
Peters told The Country's Jamie Mackay today he was disappointed with the decision.
"It's about small towns around New Zealand - it's all critical to their infrastructure and their long term viability and in fact, their growth."
Read more: Tasman District Council votes against Waimea Dam
Peters said the coalition agreement "made it very clear that we wanted to see certain operations like that proceed," and that there were talks with the mayor of Tasman for the Provincial Growth fund to be involved, "and yet it got voted down".