Let's Kōrero Wai - Talk Water

Local Water Done Well is the Coalition Government’s plan to address New Zealand’s long-standing water infrastructure challenges. It replaces the previous government’s Three Waters proposals.

The water reforms began to ensure everyone in Aotearoa New Zealand has safe, clean drinking water and to improve the way wastewater and stormwater are managed.

The Havelock North drinking water incident in 2016 was a major trigger for this work, when around 5500 people fell ill and four people died after drinking contaminated water. This event exposed serious issues with New Zealand’s water infrastructure, safety standards, and the need for stricter regulation. It highlighted the risk of poorly maintained water systems, prompting the government to push for legislation changes to ensure safe drinking water nationwide.

There will be new rules for investment, borrowing and pricing and new options for how we deliver water services.

Councils throughout New Zealand are required to formulate a Water Services Delivery Plan by September 2025. The plan will show how they will deliver services that meet the new water quality and infrastructure standards, support growth and urban development, that will be financially sustainable and can meet new regulatory standards by June 2028.

Yes, all territorial authorities must prepare a plan. This includes all district and city councils, and unitary authorities, and excludes regional councils. Plans can be developed by individual councils, or jointly with other councils if they propose to deliver water services through a joint arrangement.

Councils are required to consult their communities on their proposed arrangements for delivering water services, whether this is retaining their existing arrangements or establishing or joining Council-Controlled Organisations.

The consultation document must make the following information available for the public:

• the proposed model or arrangements
• an analysis of at least two options
• potential impacts of proceeding or not proceeding with the proposal, including on rates, debt, levels of service and any charges for water services
• the implications for communities, if the proposal involves establishing, joining or amending a joint water services organisation

Waipā District Council intends to consult with its community on its proposed water services delivery options early in 2025.

The consultation must be completed before the plans are submitted to the Department of Internal Affairs.

In Waipā, we've made some good investment decisions about our three waters over recent years, including installing water meters district-wide, the new Cambridge Wastewater Treatment Plant, wastewater and watermains upgrades in Te Awamutu, and district-wide flood hazard mapping.

However, we expect it will cost our ratepayers more in the long run to meet the new rules and regulations put forward by the Central Government. There are:

• Increased costs to demonstrate our compliance to the new economic regulator
• Increased project and operating costs to comply with new water quality regulations

Financial sustainability means water services revenue is sufficient to meet the costs of delivering water services. The costs of delivering water services include meeting all regulatory standards, and long-term investment in water services.

How councils approach achieving financial sustainability can be different depending on local circumstances and require councils to consider the balance between three key factors.

These factors are:

• Revenue – is there sufficient revenue to cover the costs (including servicing debt) of water services delivery?
• Investment – is the projected level of investment sufficient to meet levels of service, regulatory requirements and provide for growth?
• Financing – are funding and finance arrangements sufficient to meet investment requirements?