Three Waters Reform

It is estimated that upward of $185 billion is needed to fix, upgrade and maintain New Zealand’s water services over the next 30 years to ensure that critical water infrastructure is maintained.

A working group of local government, iwi and water industry experts is being established to consider governance and accountability arrangements for the new entities, as well as provide an opportunity for public participation and consultation.

The four new entities will take responsibility for water services in July 2024.  Until then, your water will continue to be delivered by Wellington Water, our region’s joint Council-controlled organisation.

The case for change

Over the next 30 years, New Zealand’s water service infrastructure requires substantial investment.  Up until now, the responsibility to make that happen has sat largely with local councils, which own and operate 85% of New Zealand’s drinking, waste and storm water services.

The Government’s move to create publicly owned water entities will shift the management and delivery of these services to four larger public entities.

There’s still a lot of work to do, and decisions to be made.  Whatever the outcome, no changes will happen before 2024.   Until then, your water will continue to be delivered by Wellington Water our region’s joint Council-controlled organisation.

History behind the change

The Three Waters reform proposal followed the deaths in 2016 of four people from Havelock North. They died as a result of water contamination in the region.  A further 35 people were hospitalised and many of the local community fell ill.

The Government launched an inquiry, then introduced new legislation to strengthen regulation and provide clearer oversight of the three water networks.   A new water services regulator Taumata Arowai was established to support these reforms.

The Government also looked at how the three water services are currently delivered.  It acknowledged the challenges faced by councils, including the need for affordability.

This led to the Three Waters Reform programme and an agreement that central and local government would partner to move the reform forward.

Significant investment would be required to bring New Zealand infrastructure up to the standard needed to meet health and environmental needs and the demands of future growth.

Analysis from Water Industry Commission from Scotland (WICS) showed New Zealand faces an estimated investment requirement of between $120-$185 billion over the next 30+ years.

Without reform, these costs would be shared among New Zealand households. For Hutt City that meant rates would almost triple between now and 2051.

Next steps

Under the new regime, the Government says that councils will retain ownership of water services through the four new entities, and local communities will retain influence over how the assets are run through the councils.

The Government will create the working group before November 2021 and legislate in December 2021. Feedback via the select committee process will get underway early in 2022.

The four new water entities will take responsibility for water services in July 2024.

Further Information

Council wrote to the Three Waters Team on 30 September 2021 to share our feedback. You can read the letter here (PDF 1.6Mb).

Council met on 9 September 2021 to consider a report on the reform proposal. You can read the report here (PDF 14.6Mb).

You can also find all the information that has been released to councils to date at the Department of Internal Affairs and LGNZ websites.