Kaikoura's water reservoirs are set to be replaced after they were damaged in the November 2016 earthquake.

Minister of Civil Defence Kris Faafoi says the government is providing $676,000 which will allow the Kaikoura District Council to build a new reservoir to ensure the resilience and reliability of the town's freshwater supply.

Two of the town's reservoir tanks were severely damaged in the quake and are expected to fail if there is another significant shake.

Temporary repairs have been made to one tank, allowing it to be returned to service, but both tanks are now at the end of their useful lives.

"These tanks are critical to maintaining the supply of fresh water to most urban residents and businesses, so this funding will allow the two damaged tanks and incoming pipework to be replaced within 15 months with a single reservoir of equivalent capacity." Mr Faafoi said.

The funding for the reservoir and incoming pipework replacement is the first draw down from a $2.4 million fund set aside to help Kaikoura District Council upgrade damaged infrastructure, rather than just repairing it.

The government is also continuing to support Kaikoura, Hurunui and Marlborough District Councils to repair quake damage to three waters (drinking water, waste water and storm water) infrastructure through the usual 60 per cent Crown contribution.

The 2016 quake also severely damaged State Highway 1, which saw a section north of Kaikoura officially reopened in December 2017 - while the Kaikoura Harbour was repaired and reopened in November 2017.