On 15 August, Council resolved to establish a multi-council Water Organisation (multi-council WO) with Western Bay of Plenty District Council (subject to due diligence) to deliver water services, from 1 July 2027.
Choosing a water services delivery model is our responsibility under the government’s new regulatory and legislative framework under Local Water Done Well through two significant pieces of legislation (the Local Government (Water Services Preliminary Arrangements) Act 2024, and the Local Government (Water Services) Act 2025).
The multi-council WO is designed to help councils get better access to funding for water infrastructure and deliver quality water services to the community at a lower cost (compared to other delivery arrangement options).
Our Water Services Delivery Plan
Under the Local Government (Water Services Preliminary Arrangements) Act 2024, Council was required to submit a Water Services Delivery Plan (WSDP).
The WSDP is a 10-year strategic document that sets out Tauranga’s approach to delivering water supply, wastewater, and stormwater services. It includes infrastructure assessments, financial forecasts, and an implementation plan for transitioning from in-house service delivery to a multi-council Water Organisation (multi-council WO).
The plan also looks at whether Council has enough funding and investment to support this transition.
Water Services Delivery Plan (WSDP) (4mb pdf)
The WSDP has been submitted to the Department of Internal Affairs (DIA) for approval. Over the next couple of months, the DIA will assess the proposal, ensuring there is sufficient investment and revenue to support the delivery of water services to our fast-growing city.
A new way to govern
We will be looking at how the governance framework might be shaped to ensure the new multi-council WO is set up for success. This will include the necessary skills in the Board of Directors.
Council have undertaken to enter into a phase of due diligence. If this phase confirms a multi-council WO is mutually beneficial and viable, appointments will begin once all the necessary transition steps have been taken to set it up.
Shareholding arrangements
Through a joint council document called the Statement of Expectations, the new organisation would be responsible for delivering water services. The new Board of Directors would be focused on achieving the outcomes outlined in this statement.
Under the proposed model, councils would set up the multi-council WO to operate as a separate organisation from the shareholding councils. The new organisation would be responsible for delivering water services and Councils would provide strategic direction, through the Statement of Expectations.
The shareholding arrangements will be negotiated and agreed upon as part of the transition and establishment process, if due diligence confirms the multi-council WO is a mutually beneficial option for both councils.
What you will notice
You won’t notice any changes initially. Most work will be happening in the background to ensure we’re ready to transition to a multi-council WO on 1 July 2027.
Our priority remains providing affordable, quality services to residents and ratepayers.
What’s next?
We have signed the Commitment Agreement with Western Bay of Plenty District Council, initiating the due diligence phase to begin. We will be progressing the implementation plan contained within the WSDP.