Water Services contract extended

Watercare and Waikato District Council have reached an agreement to extend the Council’s water services operations and maintenance contract.  

Watercare had previously advised it would be ending its contract with Waikato District Council at the end of June 2026. However, following negotiations the contract will now be extended to 30 June 2028.    

Watercare acting chief executive Jamie Sinclair says Watercare is pleased with the updated arrangement, which provides clarity for its team and allows time for Waikato District Council to consider future options. 

“This extension of time gives Waikato District Council a bit of breathing room while it firms up what the district’s future water services look like under the Government’s Local Water Done Well policy. 

“We are happy to support the council as it works towards its desired outcome under water reform.  

“Confirming our contractual arrangements until June 2028 also provides welcome certainty to our staff, who do an outstanding job providing water, wastewater and stormwater services in the Waikato district.” 

Waikato District Council Chief Executive, Gavin Ion, is very pleased with Watercare’s decision to remain in partnership with Council for longer.   

“Waikato District Council is underway with development of a Water Services Delivery Plan, which will outline how we will provide effective and affordable water operations for our district in future.”  

“Council is exploring the structure of the new water services model, with three options on the table to investigate further; a joint Council-Controlled Organisation (CCO) in partnership with Hamilton City Council, a joint CCO with Waikato Waters Done Well, a group representing a number of councils in the region to establish a wider-ranging organisation for water services delivery, and a stand-alone CCO which Waikato District Council would own and operate independently.”  

The new waters legislation, which is being released in stages, encourages councils to work together, potentially forming larger regional enterprises to achieve better economies of scale. The new legislation requires councils to submit this plan by September 2025, with a 2028 deadline for implementation. 

The updated agreement with Watercare allows Council to retain the right to exit the contract earlier if an appropriate alternative long-term solution can be put in place.  

“We are keeping all options on the table at this stage while we assess the most suitable direction for prioritising financially sustainable water services for our communities,” said Gavin.   

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