Waimea Community Dam's reservoir is now built, and on track to supply the Tasman District with water from next summer.
Waimea Water chief executive Mike Scott said the reservoir was closed last week in time for it to be filled up over the winter months. He expected it to be full by October, weather permitting.
It was the first large dam to be constructed in New Zealand in 25 years and the first publicly funded large dam built since Clyde Dam was finished 30 years ago.
Once full, the dam would hold 13 million cubic metres of water. Scott said it would provide the town supply and local irrigators with water security, especially in the face of climate change.
"Scientists tell us to expect the warming climate to create greater storm intensities and periods of lower precipitation and dyer soils. Our dam will help mitigate these impacts by catching the storms and letting them out through the natural system in dry periods."
The Lee River will be diverted through a temporary pipe over the next six months while the reservoir is being filled and the permanent pipework and systems commissioned
Construction began on the Waimea Community Dam in early 2019.
It is projected to cost $198 million, $98m more than what was originally planned. Scott said unexpected geology, Covid-19-related delays and an escalating cost environment all contributed to the total cost.
Tasman Mayor Tim King said it was brilliant to reach this stage in the dam's construction.
"This project has been challenging for many reasons but we can now look forward to the dam delivering the economic, social and environmental benefits to future generations of Tasman and Nelson residents."
Waimea Irrigators chair Murray King said having the reservoir closed was a milestone.
"Knowing that the reservoir can soon start to fill is awesome as means the community is on track to having more water for summer. Giving growers some assurance of water supply will inform their spring planting for the summer season, particularly important as we are expecting a windy and dry El Nino summer.
"I am sure there will be a lot of relief around the region that the dam is on track to replenish the Waimea River and aquifers at the end of this year."