Water Services

The focus of Local Water Done Well is on Councils voluntarily working regionally on what future water service solutions could be for them. Local Water Done Well is the Coalition Government’s plan to address Aotearoa New Zealand’s long-standing water infrastructure challenges. It replaces the previous government's Three Waters Reform programme but seeks to achieve similar water outcomes.

Key components of Local Water Done Well include:

• Fit-for-purpose service delivery models and financing tools ensuring water services are financially sustainable.
• Introducing greater central government oversight, economic and quality regulation.
• Local Water Done Well is being implemented in three stages, each with its own piece of legislation:
• Repeal of previous water services legislation.
• Establish framework and preliminary arrangements for the new water services system.
• Establish enduring settings.

In 2023 legislation was passed by the Labour-led Government to remove the costs of water services from councils (and transfer to new organisations) in stages. However, during its first year, the Coalition Government scrapped the previous government’s Three Waters legislation and work programme. This change was signaled during the 2023 general elections and the new direction is Local Water Done Well (LWDW).

Council voted unanimously on 27 November to proceed with entering into a non-binding Heads of Agreement relating to Waikato Waters Done Well.

This is not a final decision and Council continue to work on two projects in this space, which will go out for public consultation in early 2025. The two projects are:

1. A Water Services Delivery Plan which needs to be with Central Government by September 2025. The plan will show how council would future manage the water assets, services and costs in giving effect to the LWDW legislation requirements That plan would need to be completed and approved by council before the government deadline of September 2025.
2. Through Co-Lab, council is involved with work around a possible regional approach to water services through the Waikato Water Done Well initiative. This involves Thames/Coromandel, Hauraki, Matamata-Piako, Waikato District, Waikato Regionals, Waipa, Otorohonga, Waitomo, South Waikato District and Taupo councils. Council will also work up an alternative model for the water services to remain part of the council as SWDC 2.0 and these two alternatives will be consulted on in early 2025.

All Councils across New Zealand are required to consider the future management of water services under the Government’s Local Water Done Well legislation. All councils, or groups of councils, must prepare a water services delivery plan and submit it to the Department of Internal Affairs by September 2025.

At the same time as they announced the Local Water Done Well Bill, Government announced new funding options available to councils and new water council-controlled organisations (CCOs). The Local Government Funding Agency (LGFA) will offer lending of up to 500% of debt to revenue levels for future Waters CCOs and up to 350% for high-growth councils. Waters CCOs must meet various criteria to access this borrowing.

Council is mindful of affordability of water services under any proposed new solutions, alongside the need to attract suitable human resource that would be required to fulfill requirements.

Central government has made it clear that affordable and safe water services and delivery is what it expects of local government and working with like-minded councils may provide the scale and opportunities individual councils can’t.

Work is at an early stage to examine reasonably practicable options, including continuing the status quo service delivery option, or establishing a new water services organisation with neighbouring Councils (Waikato Waters Done Well).

As part of exploring the options, we’re working with Councils in the Waikato on a potential joint-council water services organisation that will be workable, affordable, sustainable, and meet the needs of communities and the environment.