What is “Local Water Done Well”?
“Local Water Done Well” is the Coalition Government’s plan for managing water services delivery and infrastructure following the repeal of Water Services Reform legislation (Three Waters) in February 2024.
It is intended to ensure people pay cost-reflective prices for water services, that those services are delivered to an acceptable quality, and that water services providers are investing sufficiently in infrastructure.
A key feature of the change is also to provide councils with the flexibility to determine the most suitable structure and delivery method for delivering water services to the community. One of the possible options is a council-controlled organisation (or CCO).
Any proposed new water organisation would be intended to enable enhanced access to long-term borrowing for investment in water infrastructure that supports growth and resilience of water services to customers.
What does the legislation require councils to do?
The most recent legislation, Local Government (Waters Services Preliminary Arrangements), enacted in September 2024 requires us to draft a Water Services Delivery Plan (WSDP). This plan sets out how our water services will be delivered in a sustainable way and meet future health, economic and environmental regulations. The plan is a tool for councils to consider current and future delivery of water services. It will cover a period of 30 years.
The WSDP would need be consulted upon and submitted to the Department of Internal Affairs by September 2025.
A third Bill, the proposed Local Government Water Services Bill, is planned to be introduced to Parliament in December 2024. This Bill will set out a range of changes to the water services delivery system and to the water services regulatory system. It paves the way for economic regulation of water services so that how we charge for water, wastewater and stormwater meets acceptable price and quality outcomes for customers. The legislation will also set out amended powers and responsibilities of water CCOs.
Will the legislation affect the water services I receive?
No, your water and wastewater services will not be affected. We will continue to provide quality services to residents and ratepayers as we look to explore the best service delivery model for the future of our community. This includes working with neighbouring councils to seek the best way forward.
Our focus is to ensure residents continue to receive quality and value in their water services.
Next steps
We are now preparing an indicative business case (IBC), which will be guided by Treasury’s Better Business Case model, to explore service delivery options under the Government’s new framework.
The indicative business case will investigate a number of options for water service delivery and consider any potential impacts on the organisation.
We are currently working towards presenting a draft business case to Council in December. The business case is important, as it will also inform the WSDP.
Once the Mayor and Councillors have considered the business case and WSDP, we’ll be asking you for your feedback. We expect this will be in the first half of 2025.
You can stay up to date with information about this work as it progresses by signing up to our Let’s talk Tauranga newsletter or checking this webpage.
For more information, visit Department of Internal Affairs’ Water Services Policy and Legislation.