Local Water Done Well – Decision Time
Published on 07 July 2025
At an extraordinary meeting of the Waitaki District Council tomorrow, Tuesday 8 July, the Mayor and Councillors will decide which option they will progress for the delivery of Waitaki’s water services.
This option will then form Waitaki’s Water Services Delivery Plan (WSDP), to comply with the Government’s Local Water Done Well legislation.
The Decision
Tomorrow’s decision is about what Council’s Water Services Delivery Plan will contain.
It is not a final decision on the establishment of an In-House Business Unit, a Standalone CCO or a Joint CCO.
It is the next step in the process that will inform the content of the plan which has to be submitted to the Government by 3 September 2025, for review and approval.
Before deciding on an option Councillors will consider a range of information including the modelling of the four options, analysis of those by Infometrics, Concept and the DIA, information provided by the Minister in his letter to Council in June and the content of the 300 submissions Council received during its public consultation.
Under the legislation, as the decision has an impact on other council areas, Council is also required to consider this and the results of the consultation across the other three districts in Southern Water Done Well.
As the Government will be reviewing and approving plans based on their compliance with the Local Water Done Well reform and financial sustainability, the DIA undertook initial analysis of the options for Waitaki and concluded that:
“The establishment of a Southern Water Done Well water CCO comprising of the four councils’ water services is likely the only viable option for delivering a Water Services Delivery Plan that meets the legislated financial sustainability requirements for both water services and councils, whilst managing the affordability impact of required water services charges on household budgets.”
This gives some indication of what will be approved by the DIA and what will likely not be approved. The full analysis can be found on Page 230 of the agenda for tomorrow’s meeting.
The Reform Requirements
The Government’s Local Water Done Well reforms require all Councils (except Auckland) to submit a WSDP to the DIA by September 3, 2025.
If a Council does not submit a plan, or submits one which is not financially sustainable, the Minister will consider exercising his intervention power.
This may include the appointment of a Crown Water Services Specialist, to develop and direct the Council on behalf of the Crown to submit a financially sustainable plan. This would be at the cost of the Council.
Minister Watts has made it clear he does not expect to grant extensions for submitting a WSDP. Once a plan is submitted, it cannot be repealed and/or replaced without Ministerial or DIA approval. Once a WSDP is approved, a Council is legally bound to implement it.
What happens next?
Once a decision is made by Council, the WSDP will be developed and brought back to Council for approval, ahead of being submitted to the Government, by 3 September. The DIA will then review the plan and consider whether to approve it or not.
If approved, Council will then begin fulfilling the plan by 1 July 2027 – when whichever approved option will take over water service delivery. Water services will remain in-house until then.
The Local Government (Water Services) Bill is not yet law, and is the final bill of the Local Water Done Well reforms. This will set out the detail for regulation by Taumata Arowai and the Commerce Commission, and establishes the longterm future of water services in New Zealand. The bill is expected to pass into law in September this year.
ENDS