A deal has been reached that will allow a hydro electric scheme at Stockton on the West Coast alongside a coal mining operation there.
Hydro Developments Ltd and Solid Energy New Zealand Ltd have reached an agreement about using water from Stockton Plateau to generate electricity.
Solid Energy was concerned the hydro scheme could compromise its mine at Stockton, north of Westport, but it will now give HDL access to the land it requires.
HDL has agreed not to oppose any consent application for water diverson which Solid Energy might need to operate the mine.
Both parties say the agreement smoothes the way for the hydro proposal.