A reliable future water supply for Wairarapa could be a step closer.
The Provincial Growth Fund is giving Wairarapa Water Limited $800,000 to do a feasibility study of a plan to develop a water storage facility at Wakamoekau, north-west of Masterton.
The facility would have the potential to provide up to 18 million cubic litres during droughts.
Chair of Wairarapa Water Tim Lusk said many local businesses were worried about potential water shortages and could expand if given access to a greater supply.
He said government support at this point was key to giving the community and investors confidence.