Water Services Policy and Legislation
About the Water Services Policy and Legislation
Following the 2023 election, the Government repealed the Three Waters legislation and is replacing it with the Local Water Done Well programme of reform.
The reforms will see two Bills presented to Parliament. The first Bill (Local Government Water Services (Transitional Provisions Bill) requires councils to develop water services delivery plans and will likely be enacted by the end of June 2024.
The second Bill, which will focus on regulation and financial matters, is expected to pass by mid-2025 ahead of the local government elections in October 2025.
So, what is a water services delivery plan?
A service delivery plan will set out a local council’s proposed approach to the long-term delivery of each of drinking water, wastewater treatment and disposal, and stormwater treatment and disposal. The plan will need to demonstrate that services are meeting the applicable health and environmental standards and appropriately addressing growth, in a financially sustainable way.
A service delivery plan will need to address the method or methods for delivering water services. These may differ from service to service. For example, after investigation a council might choose to be part of regional Council Controlled Organisation that delivers water and wastewater services while choosing to retain stormwater treatment and disposal ‘in house.’
The final service delivery plans are due to the Department of Internal Affairs for review within 12 months of enactment of the bill.
What is happening in the Waikato?
Hauraki is currently working collectively with Waikato neighbours to consider options that will enable water infrastructure to be provided efficiently and cost-effectively, in a way that best suits our communities.
A Joint Waikato Mayors and Iwi Chairs Forum is formed, to gather and assess information to help individual councils make informed decisions. This work will be required of all councils as part of delivering a Water Services Delivery Plan.
The Forum is not a decision-making body and nor is the work being undertaken just about financials. It’s about identifying options that deliver efficient and cost-effective water services to meet the needs of our communities long-term. Once the options are collated, it will be up to individual councils to decide their path forward.
The forum identified early that local councils share the same goals as the wider community:
- Collectively, we all want clean, safe water to drink no matter where we live.
- Collectively, we all want clean rivers and water ways
- Collectively, we all want wastewater treatment that meets increasing health and environmental standards.
Do councils have to engage with their communities?
It appears that the choice of when to engage, how long, and using what process will be matters for councils to make.
In making these judgements HDC will need to take the principles of consultation (section 82 of the Local Government Act 2002) into account and observe any requirements we have set out in our Significance and Engagement Policy.
What is Economic regulation?
Economic regulation is a key feature of Local Water Done Well, intended to ensure consumers pay efficient, cost-reflective prices for water services, that those services are delivered to an acceptable quality, and that council is investing sufficiently in their infrastructure.
Development of an economic regulation system for water services will be led by the Ministry of Business, Innovation and Employment. Relevant provisions would be included in the second Local Water Done Well Bill (to be passed in mid-2025), and implemented by the Commerce Commission after that point.
Government Information
A quick overview of Local Water Done Well
Learn more about the new water services regulator - Taumata Arowai
Previous Government support package Better Off funding guidance - DIA website
