DIA rejects Water Services Delivery Plan

Published on 07 October 2025

Secretary requests reassessment, amendment and resubmission of WSDP

The Secretary for Local Government has written to Waitaki District Council to inform that the DIA’s assessment is that the Water Service Delivery Plan does not comply with the legislation.

The letter requests the Council reassess, amend and resubmit its Water Services Delivery Plan (WSDP). The letter also asks the Council to consider different scenarios including a different delivery model to the in-house option agreed by Council in July 2025.

Council believed it had successfully resolved the issues identified in the DIA assessment of the Draft Water Services Delivery Plan in August 2025.

However the Secretary has asked Council for an asset review of the current condition, lifespan and value of the entire water services network – and make amendments to the WSDP based on this.

DIA Officials have identified other areas which should be reconsidered because of the asset review, including;

• Meeting compliance with regulatory requirements

• Confirming Council’s asset management approach

• Ensuring sufficient funding is included in the WSDP

• Projected capital expenditure on infrastructure, including renewals, using information from the review

• Revenue required and pricing of water charges for the community, including requiring a credit rating

• Financial sustainability of the revised plan, based on the asset condition review

The deadline for resubmitting the WSDP is 30 June 2026, to allow for the asset condition review to take place.

The Secretary also expects, as this review is done, that Council consider “...different scenarios including the potential for a change in delivery model in your revised plan, to ensure the financial sustainability requirements can be met.”

The Secretary will be briefing the Minister of Local Government on the outcome of the DIA’s assessment of Waitaki’s WSDP, including advice on the potential use of Ministerial intervention powers, if needed.

Council officers will be meeting with representatives from the DIA to discuss their findings and requirements ahead of a briefing of the new Council and decision on how the Council wants to proceed.

An asset review of condition, lifespan and value of the entire water services network taking placing in the next nine months is currently unbudgeted and so the new Council will need to agree if it wants to fund this work to meet the Government requirements.

Early estimates indicate the cost is likely to be in the millions of dollars, based on the projected asset review budgets set out in the Water Services Delivery Plan for future years being brought forward to the 2025-26 financial year.

The newly elected Council will be required to make a decision about the next steps on resubmitting a new WSDP to meet the requirements of the DIA.

6 October 2025 Letter from Secretary of Local Government to Waitaki District Council(PDF, 1MB)

ENDS

media@waitaki.govt.nz