Hawke's Bay Regional Council has accepted criticisms about the way it handled applications from farmers, wanting to take water from two major rivers.
It commissioned an independent report last year, after about 60 farmers who take water from the Ngaruroro river, went to the Environment Court.
Chief executive Andrew Newman says the major criticism by report author Dr Brent Cowie, was that council staff grossly under-estimated the cost of processing applications.
Mr Newman says the council also takes on board criticism that parts of its regional resource management plan are badly flawed and the volume of water that can be allocated, needs reviewing urgently.
