Waikato Water Done Well (WWDW) is a project that has supported participating Waikato councils to identify collective water services challenges and facilitate in co-designing a region-wide water services delivery model.

Elected Members have agreed to enter into a Heads of Agreement as part of  WWDW. The decision commits us to working with other councils in the Waikato to investigate the establishment of a council-controlled organisation (CCO) to deliver water and wastewater services in the future.

--

Under the Government’s Local Water Done Well legislation, councils must choose the best way to deliver water services for their communities.  Each council must consider at least two options and then consult with their community before making a final decision in 2025.

The Waikato Water Done Well initiative is one of the options that Waitomo District Council is exploring.

 

A fresh approach to a regional challenge

Multiple independent reports over more than a decade have said that managing water services regionally could save money and improve infrastructure by leveraging scale. This regional model would involve creating a new multi-council organisation—called a Council Controlled Organisation (CCO)—to handle drinking water, wastewater, and, where requested, stormwater services.

Under Waikato Water Done Well, participating councils would transfer responsibility for their water services to the new organisation which they will collectively own, and have a say in its strategic priorities.

 

 

What is Local Water Done Well?

A: Local Water Done Well (LWDW) is the government's approach to improving the management of drinking water, wastewater, and storm water (the "three waters") services replacing Labour’s previous "Affordable Water" model, sometimes called “Three Waters”.

It is intended to ensure what people pay for water services reflects the actual cost of providing those services, that they  are delivered to an acceptable quality, and that water services providers are investing sufficiently in three-waters infrastructure.

Over the next few months all councils in New Zealand need to review how they are delivering water services and make a plan for how they’ll be delivered into the future – called a Water Services Delivery Plan. To develop that plan, they need to analyse at least two different models for future water services delivery and consult with their communities. As a minimum, one of those options analysed must be existing arrangements and the other must be a joint arrangement with other councils (which may be forming a company referred to as a Council Controlled Organisation (CCO) with other councils).

Councils must then make a decision on which model it intends to use in the future and submit their Water Service Delivery Plan to Central Government by 3 September 2025.

 

What is a Water Services Delivery Plan?

A: Under the Government’s Local Waters Done Well legislation, all councils across New Zealand must produce a Water Services Delivery Plan (WSDP) by 3 September 2025.

The plans are a ‘one off’ way for councils to reflect on their current approach to the delivery of drinking water, wastewater and stormwater services and demonstrate their commitment to a future model that is financially sustainable and meets quality standards.

Water Services Delivery Plans:

• must include detailed information about water services operations, assets, revenue, expenditure, pricing, future capital expenditure, and how Councils plan to finance and deliver their preferred delivery model.
• are for a minimum ten-year timeframe but can be up to 30-years. The first three-years must be in detail.
• 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.

 

The plan must be certified by the Council’s Chief Executive as true, accurate and in compliance with relevant legislation, signed-off by the Council and accepted by the Minister for Local Government.

 

What is Waikato Water Done Well?

A: The Government has provided clear direction for water and wastewater management into the future. A key part of this direction is that water and wastewater services (and everything to do with these) must be separated from other council services and activities. 

The Government has also set the expectation that while councils are assessing the options, they should be discussing working together with other councils to deliver these services.

Waikato Water Done Well is a project that has been underway for the last 18 months at the request of the Waikato Joint Mayors and Iwi Chairs Forum (Forum).  It currently involves all councils across the Waikato region (excluding Hamilton City) working together to see how a regional water council-controlled organisation (CCO) could deliver water services in a way that achieves agreed strategic outcomes.  Hamilton City Council was involved until September when it resolved to no longer participate.

 

Didn’t the government repeal Three Waters?

A: While there are different political views on how water services reform should be implemented,  – what all political parties acknowledge is that the delivery model for water services in New Zealand is not fit for purpose. 

The government did repeal the previous “Three Waters” / “Affordable Water” legislation and is introducing its own “Local Water Done Well” legislation.

This new preliminary arrangements legislation requires councils to make some important decisions over the coming months about their water infrastructure, service models, and whether to partner with other councils to meet the requirements of the enduring settings legislation. 

 

 

What water services does this impact?

A: Local Water Done Well impacts drinking water, wastewater and storm water, known as “three waters”. 

Waikato Water Done Well would see Councils transferring responsibility and obligations for drinking water and wastewater to a  CCO.  The CCO would also be structured to provide stormwater management services to those Councils who request this service.  Councils would remain responsible for setting the level of service and rates for storm water.  This means you will be charged for stormwater by your Council, not the CCO.  

 

What water challenges does each council have?

A: While each council has its own challenges, there are some common challenges such as:

a) Community affordability of water charges

b) Workforce (staff and supplier/contractor availability and capability)

c) The increasing regulatory environment

d) The ability to deliver budgeted capital works programmes

 

There are also some common opportunities to be realised, including:

a) better use of standardised data and consistent technology.

b) increased leverage for procurement and contracting.

c) better local career paths for the regional water’s workforce.

d) forming sound and effective relationships with Iwi at a level that aligns with current entities and enables a whole of river approach

 

While each council has its own challenges, there are some common challenges across the country including ageing infrastructure, population growth, climate change, and natural disasters. 

Estimates show that New Zealand needs to spend between $120 billion and $185 billion on water infrastructure over the next 30 years. This is likely to be unaffordable for ratepayers unless we do things differently.

Most Councils already have significant investment in their three water networks underway to comply with tougher regulations that have been introduced in recent years. But this creates its own challenges, with high demand for staff, suppliers and contractors. With these in short supply, it’s likely that some councils won’t be able to deliver their projects within their planned time frames.

The councils in the Waikato face a combination of some or all of these challenges.

 

What are the benefits of working together regionally?

A. Although each Council’s needs for water service delivery are different, all Councils could benefit through the Waikato Water Done Well model. Benefits could include:

Financial sustainability: Achieving more with the same amount of revenue.

Workforce development: A more stable supply chain could encourage long-term investment, retain specialist three waters staff, strengthen regional expertise and enhance future services.

Customer-focused improvements: Increased investment in systems and standardised data could lead to better analysis, improved transparency, greater compliance, and affordability for communities.

Local influence: One of the strong objections to the previous Three Waters Reform was the lack of local influence. The regional model being explored looks to address local priorities, while still being financially independent. The CCO would be guided by Councils’ spatial plans, which are shaped through strong local input. Tools like prioritisation frameworks and statements of expectations would also reflect local voices.

Meeting broader expectations: The model could support Treaty settlement obligations, enable investment in regional catchment solutions, boost economic growth, and create cost savings through streamlining processes (like resource consents).