Germany's cabinet on Wednesday agreed on a national water strategy aimed at coping with long dry seasons and heatwaves caused by climate change to ensure water security in Europe's biggest economy in future.

Germany is a water-rich country, but weeks of high temperatures and scant rainfall in recent years have drained the water levels of the Rhine river, the country's commercial artery, and hit farmers' crops in many parts of the country.

In a first-ever national water strategy, Berlin aims to set up and protect water reservoirs in forests, floodplains, towns and villages.

The strategy, with goals to be concluded up to 2050, includes restoring forests and green spaces, and developing guidelines to regulate water distribution in case of regional shortages, through categorizing water consumers in rankings.

Local and federal governments should be able to keep an overview on where and how much water is available in the country through a new registry system, the 120-page strategy showed.

Although Germans have lower daily water consumption levels compared with other industrialised countries, the strategy examines introducing incentives for saving water.

"The consequences of the climate crisis for people and nature are forcing us to act," Environment Minister Steffi Lemke said in a statement. (Reporting by Riham Alkousaa and Markus Wacket Editing by Miranda Murray)