UPDATED 7:30pm: Mighty River Power and Tuwharetoa have signed a partnership agreement over the use of Lake Taupo.

The 52-year agreement allows the power company to continue to store water in Lake Taupo and generate hyrdo electricity.

Mighty River Power CEO Fraser Whineray says the agreement shows a commitment to work together.

Mr Whineray says they're both interested in using natural resources in a sustainable way.

"We think it sets down a very good and long term platform that we can both rely upon to work together and create further opportunities in the catchment."