As drought grips the country, the Government is promoting giant dams to irrigate dry farmland. Geoff Cumming investigates whether the biggest of these plans will work for farmers, investors and environmentalists

Buller and Grey Districts have become the first areas of the South Island to be declared drought zones, and rain is still 10 days away.

The North Island drought is unlikely to be broken this month, with nothing but scattered showers on the horizon over the next 10 days.

There is no real risk to insurance companies in this, as it is either passed on to reinsurers, or is covered by weather-linked "catastrophe bonds", writes Michael Naylor.

Wellington could run out of water next month if the council's worst-case scenario pans out - and much-needed downpours have only worsened the region's water woes.

The weekend's rain has been welcomed as a start but hasn't come near the 100mm needed to put an end to the drought.

Goodbye frosts, hello droughts and bush fires.

Some time next year, what could be the world's largest research project will be presented to the United Nations' Inter-governmental Panel on Climate Change.

Finance Minister Bill English now believes the drought could cost the nation's economy up to $2 billion - double the figure estimated last week.

Farmers need to adapt for a drier future as events like the 'once-in-a-lifetime' drought become closer to the norm.

The drought conditions much of the country is facing could lead to much higher than usual levels of tutin in honey.

The forecast rain could add to the problems for drought affected farmers, even though the prospect of wet weather in many places from tomorrow is good news.

It’s a sad state when cracks are the only things growing in the garden.

Rain is still on track to spread across the country this weekend, bringing relief to the parched North Island and parts of the South Island heading the same way.

The entire North Island has officially been declared a drought zone. Northland, Auckland, Waikato, Bay of Plenty and Hawkes Bay have already been declared to be in drought.

Reserve Bank governor Graeme Wheeler delivered a warning to the financial markets yesterday - don't assume interest rates can only go up from here.

Dramatic satellite images of the country taken a year apart highlight the North Island's desperate need for rain as the drought continues.

Mighty River Power has rejected a request to top up the "extremely low" Waikato River and people are being warned that a rain forecast will not be a "silver bullet".