Water Services Policy and Legislation
About the Water Services Policy and Legislation
Following the 2023 election, the Government repealed the Three Waters legislation and has established Local Water Done Well framework and the preliminary arrangements for a new water services system.
The Local Government (Water Services Preliminary Arrangements) Act was enacted on 2 September 2024. A key requirement of this Act is for council to develop a Water Services Delivery Plan which will assess our water infrastructure, confirm how much we need to invest for compliance and how we plan to finance and deliver it through a preferred water service delivery model.
As part of the framework, a further Bill, the Local Government (Water Services) Bill was introduced to Parliament in December 2024 and is expected to be passed by mid-2025 ahead of the local government elections in October 2025. This Bill holds all the enduring settings for regulation, financial matters, and changes to the water service delivery system.
All local government water service providers will have to meet clear minimum requirements set out in legislation. This includes meeting regulatory standards, financial sustainability requirements such as ring-fencing of water services, and there will be restrictions against privatisation.
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What are we doing at present to prepare?
HDC is currently preparing a draft copy of the Water Services Plan, using information already reported in our LTP, Infrastructure Strategy and Asset Management plans.
As part of this process we are analysing the different Water Services delivery models available to use for water services delivery. This analysis includes looking at issues ranging from debt capacity, community affordability, workforce availability and compliance. The results of this analysis will form the basis for the decision-making required to make up the Hauraki District Council Water Services Delivery Plan.
So, what is a water services delivery plan?
A water services 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 water services 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.’
These plans are a one-off and are due to the Secretary of Local Government by 3 September 2025, Council is required to determine the options that support its Water Services Delivery Plan by July 2025.
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.
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 are in the Local Government (Water Services) Bill introduced into Parliament in December 2024 (expected to be passed in mid-2025), and implemented by the Commerce Commission after that point.
Will councils engage with their communities?
Yes. Definitely. We expect to propose what we think are the most viable options for the Hauraki Community in April 2025 for community feedback.
Government Information
Department of Internal Affairs / Te Tari Taiwhenua - A quick overview of Local Water Done Well
Department of Internal Affairs / Te Tari Taiwhenua – Water Services Delivery Plans
Department of Internal Affairs / Te Tari Taiwhenua – Future Water Services Delivery system
Taumata Arowai - Learn more about the new water services regulator
Department of Internal Affairs / Te Tari Taiwhenua - Previous Government support package Better Off funding guidance
Commerce Commission New Zealand (ComCom). Water - Wai
Ministry of Business, Innovation & Employment (MBIE) – Economic regulation policy for water services
