Wellington, June 9 NZPA - New Zealand's use of fresh water is to be reformed under a new government initiative announced last night.

Environment Minister Nick Smith told the annual Environment Defence Society conference the changes to fresh water management need a collaborative approach.

The Sustainable Land Use Forum will be expanded to include iwi representatives, members of the Turnbull Group urban water forum and other industry representatives and will be renamed the Land and Water Forum.

The forum would convene for a year to establish common understanding on freshwater management strategies, Dr Smith said.

The forum would be part of a three-pronged approach, with Crown and iwi leaders continuing ongoing engagement on research projects and the Government doing the background technical policy work.

"Our objective has got to be good environmental outcomes without costly bureaucracy and is a key driver to the Government's first phase of Resource Management reforms."

There was a history of sector groups taking extreme, and opposing, positions and "this culture has not served New Zealand well", Dr Smith said.

"One of the worst examples has been the debate over freshwater where in recent years Fish and Game has run a `dirty dairying' campaign, while Federated Farmers have responded with accusations of `economic treason'."

A collaborative approach with "a greater level of leadership" from central government was needed to improve fresh water management, Dr Smith said.

The leadership came in the form of changes to the Resource Management Act and an additional $2.1 million to advance the new fresh water programme.

Water management was important for New Zealand's economic development and growth and although the country is "well blessed with fresh water... there is increasing evidence of deterioration (in water quality)".

It was a difficult balancing decisions between environment, economic potential and other values, Dr Smith said.