Grant Shapps said a residential mooring could allow people to live closer to their jobs, family or school He says houseboats could allow people to live in areas that otherwise might be out of their financial reach.
"Landlords, councils and communities all have a clear incentive to get more mooring sites in their areas," he said.
'Lease of life' "Around 15,000 people live on our waterways and many more would like to do so. The government's commitment to localism could be an opportunity for living on boats to be given a new lease of life."
Mr Shapps said the money that councils received from mooring sites could be invested in new marina facilities or waterside recreational activities that everyone could benefit from.
Half the population lives within five miles one of Britain's waterways, while water based recreation and tourism is thought to generate more than £1bn for local economies and support 24,000 jobs, he said.
Mr Shapps said creating more residential long-term moorings could also reduce the number of boats overstaying on the towpaths of canals and waterways.
Sally Ash, of British Waterways, said the organisation hoped Mr Shapps's call for more moorings would "alleviate localised congestion along the towpaths".
"We are also pleased to note the reassurance from Mr Shapps' department that people can qualify for housing benefit for help with mooring fees," she said.
Jenn BBC news website reader
Alan Wildman, chairman of the Residential Boat Owners' Association (RBOA) said: "Living afloat is arguably the most sustainable, lowest impact way to live, whilst still being able to enjoy 100% of the modern amenities that are available to those who live in conventional housing."
News website reader Jenn, from Falmouth, Cornwall, told the BBC she had considered living on the water when she moved to Brighton for a new job, but found it very difficult."Despite an array of amazing and relatively affordable converted working boats on offer around the country there are no moorings. And an average boat with a decent mooring for sale now rivals any house purchase.
"Lots of my friends live on boats. They tell me that lots of moorings were sold off many years ago and are now rented out," she said.
Jenn welcomes more moorings but says they have to be in places that are convenient for people, with services and access available.
"I had to find somewhere to live quite quickly and ended up choosing a place on dry land because there seemed no way I could find a boat and a place to moor it close enough to where I work.
"I pay over half of my junior wage for rent. I have a small back yard. I am lucky, so they say."
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