Environment Minister Janice Sherry says work will begin immediately to create a law that ensures the sustainability of the province's water resources for future generations.
Sherry says it will address various aspects of the province's water supply, including wastewater facilities, wetland protection and water-quality targets.
The government says a single piece of legislation is needed to manage and protect water resources instead of the various pieces of legislation, regulations and policies that currently exist.
It says public consultations will be carried out and legislation in other jurisdictions will be reviewed as the act is developed.
The creation of a new water act was recommended by the province's standing committee on agriculture, environment, energy and forestry earlier this year.