Local Water Done Well

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.

The Council Long Term Plan has an allowance for all properties with lateral connections to have meters installed – This is planned to take place over a number of years.  Connections will have meters installed at the toby.

Tararua District Council currently charge half charges to properties for water and wastewater.  This may change or cease if a CCO becomes responsible for the water under the oversight of the Commerce Commission pricing regulation.

The Commerce Commission will establish a pricing plan to ensure that sufficient funding is charged, but within boundaries.

“Price-quality regulation is a set of rules that control the price and quality of goods or services in markets where there is little or no competition. This means that in places where only a few companies sell something, the government steps in to make sure prices are fair and the quality is good.

The purpose of these rules is to make sure that consumers, or people who buy things, get long-term benefits. This is done by making sure that companies:

• Have reasons to come up with new ideas and invest in new or better equipment.
• Work efficiently and provide good quality services that meet what people want.
• Share the benefits of being efficient with consumers, which can mean lower prices.
• Can't make too much profit unfairly.

These rules will also apply to water services, ensuring that the companies providing water follow the same principles.”

We are projected to have $212m in assets and $66m in debt by 30 June 2026

We are expecting capital savings to reach 12.2% over the twenty years when compared to a stand-alone model.  These are estimates.

Yes they are.  The major concern is that the bigger areas might pay more if the charges are standardised across all areas.  This option is not on the table at present, and is likely to be a matter considered by the Commerce Commission one day in the future.

We may have to considered new options if we cannot form a Wairarapa – Tararua CCO.