Central government is introducing 'Local Water Done Well', a policy which will see water services remain under local government's control. It's transforming the way drinking water, wastewater and stormwater (3 waters) are delivered in Aotearoa New Zealand.
This is to give New Zealanders confidence that drinking water is safe to use, sources of drinking water are adequately protected, and wastewater and stormwater are managed in environmentally sustainable ways.
Local Water Done Well replaces the previous government's Three Waters Reform programme but seeks to achieve similar water outcomes.
Local Government Minister Simeon Brown said Local Water Done Well is about providing local government with the certainty it needs to deliver water services, while minimising costs on ratepayers.
Local Water Done Well is new legislation aimed at addressing concerns about New Zealand's water quality and water services' infrastructure investment, while keeping control over water services and assets local.
It recognises the importance of local decision making and flexibility for communities and council to determine out their water services will be delivered in the future.
The legislation also sets new financial thresholds that councils must meet to ensure long-term sustainability.
Key components of Local Water Done Well
- Fit-for-purpose service delivery models and financing tools
- Ensuring water services are financially sustainable
- Introducing greater central government oversight, economic and quality regulation.
It's 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.
A key feature of the change is also to provide councils with the flexibility to determine the most suitable structure and delivery method for delivering water services to the community. One of the possible options is a council-controlled organisation (or CCO).
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 to customers.
The most recent legislation, Local Government (Waters Services Preliminary Arrangements), enacted in September 2024 requires us to draft a Water Services Delivery Plan (WSDP).
This plan sets out how our water services will be delivered in a sustainable way and meet future health, economic and environmental regulations. The plan is a tool for councils to consider current and future delivery of water services. It will cover a period of 30 years.
The WSDP will be consulted to ensure community engagement and input, and submitted to the Department of Internal Affairs by September 2025.
A third Bill, the proposed Local Government Water Services Bill, is planned to be introduced to Parliament in December 2024. This Bill will set out a range of changes to the water services delivery system and to the water services regulatory system. It paves the way for economic regulation of water services so that how we charge for water, wastewater and stormwater meets acceptable price and quality outcomes for customers. The legislation will also set out amended powers and responsibilities of water CCOs.
Councils can choose from various models, including:
- Continuing with the status quo.
- Establishing a new standalone entity responsible for water services.
- Collaborating with other councils to create a joint water services organisation.
What does this mean for Gisborne District Council?
Over the coming months we'll continue to analyse the options and explore models for water services delivery as part of the legislative requirement to submit Water Services Delivery Plans (WSDP or Plan) by 3 September 2025.
Water Service Delivery Plans must include:
- Current delivery arrangements, state of assets and regulatory compliance, estimate of investment required to meet new regulatory standards (asset condition, public health and environmental regulation). This does not change regardless of the option that is adopted.
- A description of proposed arrangements, assessment of revenue, investment and financing sufficiency and the implementation plan process, timelines and milestones.
Timeline
We're working towards presenting a draft business case to Council in December. The business case is important as it will also inform the WSDP. Councillors and iwi chairs will discuss options and provide feedback that informs the development of the business case.
12 December 2024 - Council considers delivery options business case and approve in principal a preferred approach to be consulted with the community in March-April 2025. See the report
March - April 2025 - community consultation on the options.
May - Finalise the Plan
26 June - Decision report to Council
by 3 September 2025 - submit the Water Services Delivery Plan to the Department of Internal Affairs.
For more information
About the Water Services Delivery Plans, the future water services delivery system and legislation