Two regional councils in the South Island are backing Fonterra's new conditions of supply, which require farmers to fence waterways to reduce water contamination.
Otago and Canterbury Regional Councils say it complements their own policies.
Fonterra is making it compulsory for farmers supplying it with milk to fence off waterways, under the Clean Streams Accord.
Otago Regional Council says it's right behind that. Fencing of waterways is covered in its rural water quality strategy, set to be released next year.
It says riparian buffers, effluent storage, and modern effluent irrigation systems should also be priorities for dairy farmers.
Canterbury Regional Council says it's pleased Fonterra has strengthened the voluntary measures of the Clean Streams Accord.
Commissioner David Caygill says the council is also introducing new rules which prohibit all intensively farmed stock from entering waterways, from next year.