Local Water Done Well
Tararua District Council are responding to new laws and the Governments “Local Water Done Well” policy and are looking at different ways to deliver water services in the future. Local Water Done Well is the Coalition Government’s plan to long-standing water infrastructure challenges. It replaces the previous government's Three Waters Reform programme but seeks to achieve similar water outcomes.
What is Local Water Done Well?
Key components of Local Water Done Well:
- 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.
A regional/provincial approach
Options for the Tararua District include to join as a Council Controlled Organisation (CCO) with Wairarapa councils (South Wairarapa, Carterton, and Masterton), or Manawatū- Whanganui councils, or continue to operate as a standalone as a business unit or CCO. Consumer Trusts may also be formed.
Small provincial councils with similar characteristics, networks and values meet our need for Tararua to have a voice protecting us from not being lost in a large entity while delivering better value for residents. Other benefits of a multi-council approach include a stronger negotiating position, better access to funding, and more efficient and consistent service delivery.
Local Water Done Well and the Tararua District
We need to consider important factors such as the financial impact on water users, and the pros and cons of collaborating with neighbouring councils.
Although no decision has been made yet, it seems sensible for a small council like Tararua to look at the best collaborative option. Working with other councils could help deliver water services more efficiently and cost-effectively.
Other advantages of joining other councils include having a stronger negotiating position, having improved access to funding, and combining resources leading to more efficient and consistent service delivery.
What next?
Councils are required by Christmas to decide on their preferred options and consult early next year.
These issues will be discussed in public meetings over the next few months across councils, and the Tararua District Council will likely decide on its preferred options in December 2024. Public consultations are then planned for February 2025 to gain feedback from our communities on the options provided. As mentioned, these may include both single and multi-council CCO’s.
The final decision on forming any new water entity must be made by 30 June 2025, and the sustainable water services delivery plan must be approved by the government by August 2025.
Timeline
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Key documents
Presentations
Frequently Asked Questions (FAQs)
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 Water proposals.
Recent water reform in New Zealand began to make sure everyone 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 5,500 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.
City and district councils throughout New Zealand are required to formulate a plan (Water Services Delivery Plan) within a year to show how they will deliver water services that meet these new water quality and infrastructure standards while being financially sustainable in the long-term.
The Water Services Delivery Plan must say what service delivery model we propose to use in the future. It must show that the delivery of water services will be financially sustainable and can meet new regulatory standards by June 2028.
Plans are a requirement under the Act. Through the development of Plans, councils will provide an assessment of their water infrastructure, how much they need to invest, and how they plan to finance and deliver it through their preferred water service delivery model.
Plans are a way for councils to demonstrate their commitment to deliver water services that meet regulatory requirements, support growth and urban development, and that are financially sustainable.
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 joint with other councils if they propose to deliver water services through a joint arrangement
Plans will cover information across three key areas: financial and asset information, investment required, and service delivery arrangements. They must cover information about all water services (drinking water, wastewater and stormwater).
Section 13 of the Act outlines what information is required to be included in Plans. Section 14 of the Act outlines what additional information is required for joint Plans.
Councils have 12 months from the date of the enactment of the Act to prepare and submit their Plans. Plans must be submitted to the Secretary for Local Government by 3 September 2025, unless an extension is granted.
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 sufficiency – is there sufficient revenue to cover the costs (including servicing debt) of water services delivery?
- Investment sufficiency – is the projected level of investment sufficient to meet levels of service, regulatory requirements and provide for growth?
- Financing sufficiency – are funding and finance arrangements sufficient to meet investment requirements? Further information about financial sustainability is available in the Guidance for preparing Water Services Delivery Plans.
