New government reform confirms council ownership and control of water infrastructure and services. We, like councils across the country, are working to understand how this will impact service delivery and infrastructure.
The legislation, which is being introduced in stages, will provide councils with greater flexibility to determine how they will deliver their water services. It encourages councils to work together, potentially forming larger regional enterprises to achieve better economies of scale.
Council is working through a number of options, including with other councils, to ensure ongoing availability of affordable, reliable and sustainable water services in our district. The new legislation requires councils to submit a detailed Water Services Delivery Plan by September 2025 and for the new model to be operational by 2028.
Further detail about the legislation is available on the Internal Affairs website here.
Water affordability
Council is mindful of affordability of water services under any proposed new solutions and is actively working with the relevant government departments and potential local partners. This is a vital consideration in our decision-making.
Watercare contract
The Watercare operations and maintenance contract will remain in place until 30 June 2028, or sooner if it is replaced by a new water service model.
This allows us more time to transition smoothly to the new model and removes the need for us to find an interim solution.
Next steps in developing a new water services model
Council is exploring options for the structure of the new water services model and has developed a short list to investigate further.
The options under consideration are:
- Design of a joint Council-Controlled Organisation (CCO) in partnership with Hamilton City Council.
- Design of 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.
- Continue with an independent approach similar to our current contracted model.
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.
Further development to the government's legislation later this year is expected to clarify a number of issues further, particularly around consultation and engagement requirements.
Waikato District Council intends to make a decision on which option to go with by December, in order to ask for community input as part of the Long-Term Plan consultation during March and April 2025.
We are required to present a Water Services Delivery Plan to central government by September 2025.