What is “Local Water Done Well”?
“Local Water Done Well” is the Coalition Government’s plan for managing water services delivery and infrastructure following the repeal of Water Services Reform legislation (Three Waters) in February 2024.
It is intended to ensure people pay cost-reflective prices for water services, that those services are delivered to an acceptable quality, and that water services providers are investing sufficiently in infrastructure.
As part of this, local councils have to look at alternative ways to deliver water services.
Any proposed new water organisation would be intended to enable enhanced access to long-term borrowing for investment in water infrastructure that supports growth and resilience of water services.
The proposed way forward for water service delivery
We have developed an indicative business case (IBC) investigating several options for water service delivery and considering any potential impacts on the organisation. This plan sets out how our water services will be delivered in a sustainable way and meet future health, economic and environmental regulations. The IBC also made recommendations.
This business case is important, as it will inform the Water Services Delivery Plan that we are required to create and consult on in 2025.
This business case was discussed in a Council meeting on 9/10 December 2024, where it was confirmed that the preferred option for future water service delivery to be put forward to the community for consideration was for a council-controlled organisation (CCO), either alone or jointly with another council.
A CCO is an entity that is controlled by a local authority, or multiple local authorities. They are governed by their own boards but are still accountable to the council that controls them. A CCO was identified as the preferred option based on several criteria including financial sustainability and the opportunity to increase efficiency and effectiveness.
The community will get to see and compare council’s current delivery model (known as status quo), as well as its preferred way forward of becoming a jointly owned CCO. The CCO may or may not involve partnering with another council or councils and may or may not be a two water or three water service model. It is important that whatever arrangement is mutually beneficial for all parties.
Over time, the price to deliver water services across all New Zealand councils will increase, including Tauranga, regardless of whether council changes its service delivery model or not. Whatever we do, we want to manage and minimise those costs for our community as best we can.
Will the legislation affect the water services I receive?
No, your water and wastewater services will not be affected. We will continue to provide quality services to residents and ratepayers as we look to explore the best service delivery model for the future of our community. This includes working with neighbouring councils to seek the best way forward.
Next steps
Iwi partners and stakeholders will continue to be engaged with, and we’ll be asking the community for feedback alongside the Annual Plan in March 2025.
This will cover the current delivery model (status quo), a jointly owned CCO with potential partners such as Western Bay of Plenty District Council, or a third option of creating a standalone CCO.
Keep an eye out in 2025 for more information, including your opportunity to have your say on how we continue delivering water for Tauranga.
You can stay up to date with information about this work as it progresses by signing up to our Let’s talk Tauranga newsletter or checking this webpage.
For more information, visit Department of Internal Affairs’ Water Services Policy and Legislation.