The joint iwi and Crown Waikato River Authority is giving a thumbs up to Fonterra for ensuring farmers fence their waterways to stop stock polluting waterways.
The dairy giant has made it a condition of farmers' milk supply agreement.
The authority's co chairs, Tukoroirangi Morgan and John Luxton, say the move's great news for the health and wellbeing of the Waikato River.
Mr Morgan says they've always said it will take a combined and collaborative effort from everyone who lives and works in the river catchment to make a difference.
Fonterra says there are many farmers who already have stock fenced out of waterways but there are others who'll need to do some work to meet the requirement.
Fonterra is giving its farmers 18 months to come up to the new standard.