6.0 Economic Value of Surface Water Catchments

New Zealand Water Bodies of National Importance for Domestic Use and Industrial Use

P A White, B M H Sharp and R R Reeves, Institute of Geological & Nuclear Sciences

[ Last Updated 17 January 2006 ]

6.1 Domestic
6.2 Field
6.3 Stock
6.4 Industry

This section summarises economic value estimates of water use for domestic, field, stock and industry.

6.1 Domestic

The Waikato River catchment has the largest allocation, at around 3.8 million m³/yr for domestic water (Table 22 and Appendix 10), and the largest estimated economic value of water for drinking at around $54 million/yr. The Clutha River catchment has the second-largest allocation and the second-largest estimated economic value.

The sum of economic value of water allocation from surface water catchments for domestic water is estimated as $300 million/year.

6.2 Field

The Ashburton catchment has the largest allocation for field watering of 45 catchments with allocation (Appendix 11). The Ashburton catchment is the only catchment where the estimated economic value is greater than $1 million/year.

6.3 Stock

Estimated economic value of water for stock drinking water (Table 23) is largest in the Ashburton catchment, at $4 million/yr. Economic values associated with stock watering are quite low because estimated use of the allocation and unit economic value are low relative to domestic and industrial uses.

6.4 Industry

The Clutha River (Table 24 and Appendix 12) catchment has the largest economic value for industrial use of water. A considerable portion of the estimated economic value of water for industry comes from use of municipal water by industry. For example, approximately $1201 million/yr in economic value of Waikato catchment water comes from use of municipal supplies by industry (Appendix 12). The economic value of industrial use of water depends significantly on an estimate of the relative use of domestic water (Section 3.3). The calculations assume relative use of domestic water by industry is the same in New Zealand. However there is a significant range in the relative water use by industry in New Zealand (e.g. Table 14 where use by industry is between 1% and 40%). Therefore significant errors in estimates of economic value for industrial use are probably associated with this assumption.

Table 22: Surface Water Catchments and Domestic Water - Estimated Annual Allocation and Economic Value for the Catchments with the 20 Largest Values
Catchment number	Catchment name	Council	Total of weekly allocation (m³/week)	Economic value domestic water $million/yr
2	Waikato	EW+ARC	3770908	54
1	Clutha	ORC	1140269	22
275	Wairoa	ARC	853705	15
147	Hutt	WRC	700700	12
860	Huia	ARC	298376	11
726	Waipapa	NRC	616896	11
902	Nihotupu	ARC	254218	10
9	Taieri	ORC	449898	9
72	Kaituna	EBOP	423042	8
30	Rakaia	CRC	464841	8
377	Waiwhakaiho	TRC	423360	7
435	Kerekere	NRC	413896	7
45	Waihou	EW	383356	7
414	Waimapu	EBOP	381871	7
20	Oreti	SRC	378000	7
22	Ruamahanga	WRC	350141	6
19	Wairoa	NRC	346073	6
3	Waitaki	CRC	268005	6
494	Kopurererua	EBOP	260911	5
328	Ohau	HMW	199500	4

Table 23: Surface Water Catchments and Stock Water - Estimated Annual Allocation and Economic Value for the 20 Catchments of Largest Value
Catchment number	Catchment name	Council	Total of weekly allocation (m³/week)	Economic value stock drinking water $million/yr
51	Ashburton	CRC	6029332	4
17	Waimakariri	CRC	2111437	2
30	Rakaia	CRC	1028566	1
47	Rangitata	CRC	752415	1
22	Ruamahanga	WRC	692482	1
33		HBRC	502250	0
135		CRC	445520	0
732		CRC	411264	0
199		CRC	222642	0
347		CRC	205506	0
42		CRC	204517	0
21		HBRC	133056	0
35		CRC	106597	0
497		CRC	102760	0
3		CRC	101612	0
835		CRC	51380	0
845		CRC	34230	0
1194		CRC	34230	0
9		ORC	33566	0
321		CRC	25676	0

Table 24: Surface Water Catchments and Industrial Water - Estimated Annual Allocation and Economic Value for the 20 Catchments of Largest Value
Catchment number	Catchment name	Council	Total weekly allocation industrial and mun1 m³/week	Economic value industrial water $million/yr
1	Clutha	ORC	3195820	3124.2
2	Waikato	EW+ARC	4821378	1950.7
3	Waitaki	CRC	975730	1532.5
14	Grey	WCRC	1312896	1203.1
30	Rakaia	EW+ARC	1075033	1199.5
349	Mikonui	WCRC	972636	930.6
931	Manakaiaua	WCRC	604800	880.6
72	Kaituna	EBOP	654298	812.7
9	Taieri	ORC	679292	691
6	Buller	WCRC+TDC	634840	585.9
51	Ashburton	CRC	291585	464.1
221	Paringa	WCRC	305424	444.7
116	Tarawera	EBOP	381283	411.9
264	Arahura	WCRC	417774	399.5
31	Hurunui	CRC	263956	376.8
275	Wairoa	ARC	854069	341.9
147	Hutt	WRC	700700	280.6
92	Taramakau	WCRC	291527	277.3
20	Oreti	SRC	608569	275.8
726	Waipapa	NRC	616896	247

The total economic value of water allocation from surface water catchments for industrial water is estimated as $22,796 million/year.

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Printed: 25/11/2009