Bay of Plenty Regional Council has purchased a 266 hectare Rotorua farm and will convert it from dairy farming to improve water quality in nearby Lake Rotorua.

The property, which includes 60ha of native bush, sits within the Waiteti Stream sub-catchment, an area of cultural significance and recreational value that has experienced declining water quality in recent years, the council said in a statement.

The total purchase price for the property was $7.6 million, plus GST.

The land purchase is part of the council’s long-term goal of achieving a sustainable nitrogen load of 435 tonnes per year into Lake Rotorua by 2032.

This goal was adopted through the Rotorua Te Arawa Lakes Programme in 2015.

This purchase was made under the newly adopted Lake Rotorua Catchment Land Acquisition Strategy, which enabled the regional council to acquire or invest in land to support nitrogen reduction targets.

Bay of Plenty Regional Council chief executive Fiona McTavish. Photo / George Novak

The council said the strategy built on the existing Lake Rotorua Incentives Scheme, “which has already delivered significant nitrogen reductions through voluntary land use changes”.

Council chief executive Fiona McTavish said this was a long-term investment in the health of Lake Rotorua.

“We’ve made strong progress through incentives, regulation and engineering solutions, but we know that reaching our nitrogen targets will require every tool available.

“This land purchase is a strategic investment that allows us to directly reduce nitrogen entering Lake Rotorua while supporting broader environmental and community outcomes.”

The property currently contributes more than six tonnes of nitrogen annually to Lake Rotorua.

By retiring the land from dairy farming and restoring parts of the property to native vegetation, the council said it expected to reduce nitrogen loss by about five tonnes per year.

The land use change would also ease pressure on the wider catchment, making it more viable for other farmers to continue operating within their nitrogen allocations.

“This is also about supporting a sustainable rural community,” McTavish said.

“By reducing nitrogen loss from this property, we’re helping other farmers stay within their limits without further regulation.

“It’s a practical way to make progress toward our water quality goals while recognising the realities of farming in the catchment.”

The land has been purchased, but no decisions have been made about its future use.

The council said it would consider options in early 2026, in line with central government regulations and guidelines.

“Any future land use will need to deliver environmental benefits, be financially sustainable and align with community values,” McTavish said.

“The primary goal remains improving water quality in Lake Rotorua.”

Funding for the acquisition came from several sources, including $2 million from the Lake Rotorua Incentives Scheme, jointly funded by the Ministry for the Environment and Bay of Plenty Regional Council, $1.35 million from the regional council’s existing capital works budget for the Rotorua Catchment, and $4.2 million to be financed through new debt, with interest funded by general rates.

Additional operational and capital costs would be assessed once a land use decision is made and confirmed through the regional council’s 2026/2027 Annual Plan process.