Are we better together??

As a community, we have a big decision to make about how water and wastewater services are delivered. It is important more than ever to keep things affordable while also looking after the environment.

The Government has told every council across the country to look at the options for their water delivery services and to make sure everyone is getting a high-quality service that is affordable for the future.
Over the past decade, our council has spent a considerable amount on upgrading our wastewater infrastructure and water treatment plants. However, significant investment is needed to continue upgrading and repairing aging watermains and pipes, and to meet new legislation and increased compliance.

We are inviting submissions on two options for delivering
water services:

• Stand-alone (existing arrangements)
• Creating a joint Council-Controlled Organisation (CCO) with other Waikato councils.

We have done a lot of work to determine what is best for our district, and the CCO proposal – currently called ‘Waikato Water Done Well’ – has emerged as Council’s preferred option. Regardless of the chosen option for each council, water service delivery will look different to how it is delivered now, and communities are encouraged to participate in this decision making process because of its far-reaching future impact.

Read the
Consultation Document (PDF 2.79 MB)

Setting the scene

Local Water Done Well (LWDW) has replaced the previous government’s Three Waters reform programme.

The aim is:

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

All councils need to develop a water services delivery plan (WSDP) by 3 September 2025. A WSDP must describe the current state of council’s water assets and services and also describe the future arrangements for the delivery of waters services. It also must demonstrate how the water services will be financially sustainable by June 2028. Financial sustainability means water services revenue is sufficient to meet the costs of delivering water services.

If council’s preferred option is a joint arrangement, before adopting the model that best meets
their [future] needs councils must:

• assess the advantages and disadvantages of the two options  - one of these must be the existing arrangement but restructured to meet the new
  regulations for water and wastewater services and one of these must be the joint arrangement
• compare the options against each other based on impacts on rates, debt, levels of service and water charges
• identify a PREFERRED option and consult the community on this (information on the other option that was considered needs to also be made publicly available)
• take in to account the feedback received and make a decision on the final model

What are the options?

Option 1: Stand-alone - WDC continues to deliver water services

Under legislation, councils can continue managing and delivering water services directly. This involves preparing and adopting a Water Services Delivery Plan that outlines how they will sustain their existing water services infrastructure and operations. However, the ‘Stand-alone’ option is not status quo. If delivery remains internal there needs to be separation as a business unit from other council activities.

The economic and water standards regulators will impose additional costs and resource requirements, irrespective of who is the provider of that service.
The level of resource to manage these new regulatory requirements and what the changes we will be required to undertake are not absolutely known because the new legislation that details this is still being developed.

Option 2: WDC combines with other Councils to deliver water services

(Preferred Option)

Multiple independent reports have said that managing water services regionally would save money and improve infrastructure by leveraging scale.
The Waikato Water Done Well initiative is one of the options that several Waikato councils are exploring.

Under Waikato Water Done Well, participating councils would transfer their assets and related loans and the operation of their water services to the new organisation (a CCO).
These councils will collectively own and have a say in its strategic priorities of this CCO. 

The CCO would be established in July or August 2025, following community consultation.
Following this there will be an implementation period that will support the safe transition of council’s water services. It is planned that it will become operational by mid-2026.

A key requirement is that this is seamless from a customer experience perspective. Not all council operations relating to waters would transfer immediately.
For example it is likely that WDC would continue to provide services to the new CCO for a period of time, such as customer contact, finance services, rates and information systems.
The outcome of the community consultation and subsequent decisions by each council will determine which councils formally adopt the Waikato Water Done Well model and become a shareholder in the new water CCO.

If this option is approved it is planned that WDC would move its water and wastewater assets, liabilities, and operations in mid 2026.
If we do join a CCO then the Council support functions that remain would need to be evaluated. This will create opportunities for resource to be allocated where there are currently shortfalls.

Please read our full Consultation Document (PDF 2.79 MB)
for information on the finances and option analysis