The Labour Party announced its water policy over the weekend and already farmers are steaming.

Announcing the first ever specific water policy, Labour’s water spokesperson Brendon Burns says New Zealand’s economy relies on water, not just for farming and power, but as a way we treat the environment.

He says Labour supports irrigation from sustainable sources but taxpayers should not be asked to fund new water schemes.

Instead, under Labour's policy, farmers will have to pay the price for water use in the form of a ‘resource rental charge’, an ‘economic and environmental tool that will encourage wise use of water’.

Mr Burns says Labour will also implement the National Policy Statement on Freshwater Management in line with its original draft, initiated by the previous Labour Government.

But the proposals have got farmers boiling.

Federated Farmers National Water Board spokesperson Ian Mackenzie says  Labour’s water policy ‘highlights a poor grasp of agricultural issues and a worrying anti farmer streak’.

He says Labour is pre-empting the Land and Water Forum’s nutrient management and water allocation recommendations and imposing 'punitive taxes on a small but dynamic part of the agriculture sector'.

Mr Mackenzie agrees that agriculture has to sort out its share of the water quality issues and says the policy proposes no sensible solutions to them.

It is likely to produce perverse outcomes, he said.