The Land and Water Forum is considering the issue of trading water rights as it prepares a report to Government this year.
Forum chairman Alistair Bisley said the current system of allocating water rights on a "first in, first served" basis worked when there was plenty of water but the system needed to be reviewed.
He told The Nation this morning that a market for water rights was an option the forum was considering. Another option was "bureaucratic mechanisms".
"So we're looking at a range of things, but one of them is definitely whether or not you need to use pricing mechanisms to allow it to be distributed more dynamically, to move to its best use over time," he said.
The forum brings together more than 80 water users, including power companies, dairy co-operative Fonterra, iwi and recreation and conservation organisations. It has been told to seek a consensus on water policy and has released two reports.
The issue of water ownership has been highlighted in a Maori Council case at the Waitangi Tribunal, which argues Maori own water and challenges the sale of state-owned energy companies, which generate power from water. Tribunal decisions are not binding on the Government.
Mr Bisley said he was not sure if there would be a single answer or single regime for water across the country.
"I think there's a big difference between owning something in the sense that it's yours and it's yours forever, and owning it in the sense that you have for a period of time a right to take it, or a right to use it."
He said New Zealand needed a more efficient and dynamic water system than currently existed.
NZN