Freshwater and Primary Sector in Focus: May 2025 Resource Management National Direction Reforms

Late May the Government released two detailed discussion documents for consultation outlining proposed changes to national direction instruments under the Resource Management Act (RMA). These changes form Package 2: Primary Sector[1] and Package 3: Freshwater[2] as part of the government’s broader environmental reform programme, which the government has referred to as “the biggest package of changes to national direction under the RMA in New Zealand history”[3].

The May 2025 proposals seek to revise several national policy statements (NPSs) and national environmental standards (NESs), with a focus on easing regulatory burdens, improving clarity, and enabling more flexibility in land and water use.

Consultation on both packages closes on 27 July 2025, with decisions expected later in the year.  The proposed changes to the national direction instruments are comprehensive and detailed, and each primary sector industry group will need to use the next two months well to get on top of and respond to the many changes proposed.

This article provides a high-level overview of the key changes.

Package 2: National Direction Changes for the Primary Sector

The proposals in Package 2 are intended to better support the agricultural, forestry, and aquaculture sectors by amending national direction instruments that currently restrict or delay development.

Forestry and Aquaculture Adjustments Include:

• Reversing 2023 regulations that expanded council discretion over when councils can impose stricter rules than the National Environmental Standards for Commercial Forestry;
• Requiring a slash mobilisation risk assessment (SMRA) rather than the current requirement to remove large defined slash from the cutover unless it is unsafe to do so; The intent is to triage the forest harvest site during harvest planning to determine areas where risk is low, and exempt them from removing slash;
• Removing the requirement to require afforestation and replanting plans for permitted activities;
• Supporting marine aquaculture growth by amending the National Environmental Standards for Marine Aquaculture that regulates the reconsenting and changing of conditions for existing farms; Proposed changes include making changing consent conditions for adding new species, changing structures and monitoring a Controlled activity to streamline that part of the consenting process;
• Proposed new permitted and streamlined consent pathways for activities related to aquaculture research and trials; and
• Changing the New Zealand Coastal Policy Statement to direct decision-makers to provide for aquaculture activities within aquaculture settlement areas to support Māori to realise the potential of aquaculture settlement areas and give more recognition to the cultural and environmental benefits of aquaculture.

Quarrying and Aggregate Supply Changes Include:

• Numerous technical amendments to terminology used in various national instruments to better align; and
• Alignment of gateway tests where a quarrying proposal triggers consent requirements in respect of wetlands, indigenous biodiversity or highly productive land.

Changes to the National Policy Statement for Highly Productive Land (NPS-HPL) include:

• A review of how LUC Class 3 land is treated. LUC 3, which comprises large portions of versatile land used for grazing and mixed cropping, has caused concern due to blanket restrictions on development. Officials are seeking feedback on whether LUC 3 land should be excluded from the HPL definition completely, or just in respect of urban development plan changes;
• New Special Agricultural Areas (SAA) are proposed as a new category of HPL, to protect key food growing areas like Pukekohe and Horowhenua; and
• The timeframe for regional councils to map HPL may be extended beyond the current deadline of October 2025.

These changes could have a significant impact on future urban development and rural diversification, especially in peri-urban regions.

Package 3: Freshwater National Direction Reforms

The freshwater reforms aim to simplify compliance and implementation while ensuring freshwater ecosystems continue to be protected. These reforms affect the National Policy Statement for Freshwater Management 2020 (NPS-FM), the National Environmental Standards for Freshwater (NES-F), and associated regulations. Key proposals include:

Replacing the NPS-FM

The government is considering replacing the current NPS-FM with what is intended to be a more practical and balanced framework.  The Government is seeking feedback on whether the freshwater changes should be implemented through amending the current national direction under the RMA or whether it would be better to wait and implement changes under the new resource management legislation.

Revising Te Mana o te Wai

One of the most contentious aspects of the reforms is the proposed change to the definition and application of Te Mana o te Wai. Under the 2020 NPS-FM, Te Mana o te Wai established a hierarchy of obligations:

1. Health and well-being of water bodies and ecosystems;
2. Health needs of people (e.g., drinking water); and
3. Social, economic, and cultural well-being.

The May 2025 proposal includes:

• Introducing a new objective that would require councils to safeguard life supporting capacity and the health of people and communities, while enabling communities to provide for their social, cultural and economic wellbeing – so effectively a “balancing of values” rather than prioritising environmental outcomes above all else; In addition to the primary proposal to achieve this rebalancing, the consultation document includes 3 additional options to consider;
• Introducing a new objective to require councils to consider the pace and cost of change when setting targets for freshwater;
• Introducing a new objective requiring that freshwater quality be maintained or improved;
• Reviewing the National Objectives Framework process that requires councils to follow a set process in setting limits, targets and timeframes in water plans, to potentially narrow which values need to be provided for, and which national bottom lines need to be applied;
• Introducing a new objective to enable continued domestic supply of fresh vegetable and developing new national standards that permit commercial vegetable growing; and
• Introducing a new objective or policy to address the issue of water security as part of climate change resistance and developing new national standards that permit the construction of off-stream water storage. However, the consultation document does not propose introducing new permitted provisions in respect of actual allocation of water relating to off-stream storage – water allocation per se is not within scope of this round of consultation and reform.

Stock Exclusion and Grazing Regulations Changes Include:

• Amending the Stock Exclusion Regulations so that there is not a blanket ban on any stock accessing wetlands that support threatened species, so that it would not apply to non-intensively grazed beef cattle and deer; and
• Creating a new permitted activity standard and consenting pathway for farming activities that are unlikely to have an adverse effect on a wetland – such as fencing and irrigation.

Other Changes in respect of Wetlands Include:

• Reviewing the definition of ‘natural inland wetland’ to reduce the complexity of the ecological assessment necessary to determine whether the regulations apply;
• The preferred option being consulted on is to remove the ‘pasture exclusion’ part of the definition of ‘natural inland wetland’;
• Amendments that will make it easier to permit construction of wetlands; and
• Removing the requirement that councils map wetlands within 10 years.

Other topics and matters being consulted on include:

• Simplifying the fish passage regulations as it relates to constructing and using culverts;
• Three options to improve the rules for use and reporting in respect of synthetic nitrogen fertiliser; and
• Whether to introduce a new requirement for drinking water source risk management areas to be mapped.

There are no specific changes to the Freshwater farm plans framework in the consultation document, but it does note that the Freshwater farm plan system is currently being reviewed, and improvements will be finalised by the end of 2025.

The Ministry for the Environment has stated that implementation support will be developed alongside any new national direction, including updated guidance, templates, and technical assistance for councils and landowners.

Stakeholder submissions in the coming weeks will be critical in shaping the final form of these national direction instruments—and whether they can truly strike a balance between economic growth, environmental integrity, and cultural values.

[1] https://environment.govt.nz/assets/publications/RMA/package-2-primary-sector-discussion-document.pdf

[2] https://environment.govt.nz/publications/package-3-freshwater-discussion-document/

[3] https://www.beehive.govt.nz/release/consultation-opens-sweeping-overhaul-primary-sector-regulations

Want to know more?

If you have any questions about proposed changes to the national direction and how to submit, please contact our specialist Resource Management team.

PDF available here.