What is Local Water Done Well?

In parallel with the Long Term Plan, Council will also be consulting on its Water Service Delivery Plan as part of Local Water Done Well, a government initiative aimed at improving water services and infrastructure across New Zealand. 

Local Water Done Well is the legislation passed by the current coalition government, after it repealed the former government’s Three Waters Reform Bill. This legislation encourages Councils to assess the financial sustainability of their water service delivery, and where appropriate to form partnerships (synergies) with neighbouring councils where appropriate. Last year, all the Bay of Plenty Councils (including Kawerau) have been working on the viability of a Bay of Plenty model. This does not commit Kawerau District Council in any way, but the model helps form a useful comparison for the community with our current in-house water service delivery. We will be consulting with you, our community, on the best options to deliver water serviced in the coming months. 

Key points of Local Water Done Well

• Fit-for-purpose service delivery models and financing tools
• Ensuring water services are financially sustainable
• Introducing greater central government oversignt, economic and quality regulation

In the coming weeks, Council will be talking to our community about our water service delivery.  

As part of the Government’s “Local Water Done Well” reforms all Councils must assess the financial sustainability of their water service delivery (i.e. drinking water, storm water and waste water). As part of the assessment of financial sustainability, Councils must also consider forming partnerships with neighbouring Councils where it is appropriate.   

Last year, along with the other Bay of Plenty Councils, Kawerau has been assessing the financial viability of a multi-Council model for water service delivery. This assessment does not commit Kawerau District Council in any way, but the model helps form a useful comparison for the community with our current in-house delivery of water services. 

The new legislation enables Council to:  

• Continue delivering water services in-house OR 
• Join with other councils to form a multi-Council owned organisation OR  
• Establish new water organisations that can be owned by councils and/or consumer trusts 

At the 26 February Council meeting, a report will outline the options available to Kawerau District Council, the costs and the benefits, opportunities, and any drawbacks. Elected members can choose what they believe are the best options for community consultation. We will then hold a series of meetings and make information available for our community to have your say about the way water services are delivered to the district.   

What are the proposed changes?

Responsibility for providing water services and how delivery arrangements can be structured. Under the Bill, each territorial authority must ensure water services are provided in its district, but will have discretion to determine the optimal structure and delivery method for its local circumstances. Water services may be provided by a territorial authority in any one or more of the following ways:

• by the territorial authority providing services itself, directly (‘in house’);
• by transferring responsibility to a water organisation (through a transfer agreement), established by the territorial authority or in which it is a shareholder;
• a contract with a third party (including a water organisation) to provide water services on behalf of the territorial authority;
• a joint arrangement with other water services providers (a “joint water service provider arrangement”); or 
• another type of arrangement that is consistent with the Act.

A territorial authority may use different means for providing different water services or different aspects of a water service. For example, responsibility for water supply and wastewater could be transferred to a water organisation, while stormwater is retained ‘in 
house’. If a territorial authority establishes or is a shareholder in a water organisation, it must enter into a transfer agreement with the organisation – and publish this document. The agreement sets out:

• the responsibilities, functions, powers, assets, liabilities, and other matters that are being transferred; 
• any matters that are being retained by the territorial authority. 

The transfer agreement must also set out arrangements to be put in place for charging and revenue collection for the water services that are being transferred, including whether this will be done by the territorial authority or the water organisation. Water organisations are empowered through the Bill to charge consumers directly for the water services they provide, if this is the preferred approach. Having this agreement ensures there is transparency about where different responsibilities and accountabilities sit, and flexibility for territorial authorities to determine which arrangements will work best for them. For example, the agreement could transfer responsibilities relating to the management and operations of a water service, but not the ownership of assets.The Bill also sets out the circumstances under which a new transfer agreement is required.

Next steps

Council will be consult with residents, ratepayers, iwi and industry from 4 April to 5 May 2025. During this period Council will be asking the community for feedback in conjunction with the Long Term Plan. 

More information will be available, here on our website and via our social media platforms, newsletter and Antenno.

Further Information

The Local Government (Water Services) Bill is available at www.legislation.govt.nz. 
Information about the parliamentary process and timeline for the Bill, including how to make a submission to the select committee, is available at www.parliament.govt.nz. 
For further information about Local Water Done Well, including guidance and information for councils, visit www.dia.govt.nz/Water-Services-Policy-and-Legislation
Questions? Contact waterservices@dia.govt.nz

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