Following the October 2023 general election, the new Coalition Government announced a new direction for water services (drinking water, stormwater and wastewater services) called Local Water Done Well, aimed at addressing concerns about New Zealand’s water quality and water services’ infrastructure investment, while keeping decision-making over water services and assets local.
In early 2024, it repealed the previous government's Three Waters legislation and quickly developed its replacement model that it says recognises the importance of local decision making and flexibility for communities and councils to determine how their water services will be delivered in the future.
Councils will have to demonstrate how they meet new rules for financial, quality and economic standards and regulation, but will be able to choose how to set up our water service delivery to meet these.
Read the government's latest updates and media releases on Local Water Done Well
The key policy features of Local Water Done Well are:
- Council water infrastructure assets will not be transferred to government-mandated entities, but there will be new rules for investment, borrowing and pricing. Councils will have choices about how they design their service delivery to meet these new rules
- Under legislation, councils will be required to formulate, adopt and submit a plan by early September 2025 for how they will deliver water services that meet water quality and infrastructure standards while being financially sustainable in the long-term
- Plans must include an implementation plan and a commitment to give effect to it
- There will be a new economic regulation regime inside the Commerce Commission overseeing these rules
- Government will also introduce new quality standard for wastewater and stormwater and we expect there to be greater scrutiny of our compliance with the rules we have to meet for taking water and discharging wastewater.
We expect this to lead to an increase in the cost to the end user compared to what our current Long-Term Plan 2024-2034 expects in 2034.
One of the legislative requirements for councils is to develop a one-off Water Services Delivery Plan (WSDP). The water services delivery plan must include a description of the proposed model or arrangements to deliver water services, including whether this will be achieved alone, or by working with other councils.
The government is setting a tight timeframe for the changes. The new rules will mean councils will have to make a choice before the end of 2024 about whether they propose to operate independently or collaboratively in the future. The final decision will be when they adopt the plan in mid-2025, following formal consultation in the new year.
Regardless of the model chosen, all local government water service providers will have to meet clear minimum requirements set out in legislation. This includes meeting regulatory standards, financial sustainability requirements such as ringfencing of water services, and restrictions against privatisation. There will be additional requirements for water organisations to ensure they are operated and governed effectively.
There will also be a new approach for managing stormwater. Councils will retain legal responsibility and control of stormwater services but will have flexibility to choose the delivery arrangements that best suit their circumstances.
Changes are proposed to improve the management of overland flow paths and watercourses in urban areas (an urban area's natural drainage system). This includes clarifying council and private landowner roles and responsibilities, enabling new planning and regulatory tools, and enabling ‘service agreements’ to support the integrated management of stormwater networks.
Update 13 December 2024
At the full council meeting on Tuesday, 10 December, councillors decided on their preferred option for community consultation around the future delivery of water services.
The preferred option is a multi-council controlled organisation (CCO) with neighbouring district councils Rangitīkei and Ruapehu.
You may have seen the media release that we issued on 10 December. The full report that was considered by councillors can also be found in the agenda (Item 8.5) if you would like more information.
Next steps include the preparation of consultation materials which will go to a Strategy and Policy Committee early next year for approval with public consultation expected to be held around March/April.
On Tuesday, 10 December, the government also introduced its third Bill and the implications of this are now being considered by the Three Waters project group.
Prior to councillors making a decision about its preferred option, information-sharing and early engagement was held with the Whanganui community. Read more about their views in Item 5.6.
Update 4 October 2024
Over the last six months we have been in a period of options appraisal to prepare for the best chance of success whatever the government’s policy decisions and to ensure our community is in the best position for the future.
This has included an assessment of ‘going it alone’ under the new rules and joining up with one or more of our regional neighbours to ensure our three waters infrastructure is sustainable and continues to meet environmental and economic regulatory requirements.
We are in a phase of appraising our options, both as an individual council and with our neighbours in the Manawatū-Whanganui region.
We have made some good investment decisions in the past compared with some other councils and have increased investment in three waters infrastructure in our Long-Term Plan for the next ten years, but the government’s new rules are expected to increase the cost for end-users, whether we continue to go alone or join up with some of our neighbours.
The council will have to take a range of factors into consideration when it makes its decision about how to proceed – the financial impact on water users, community views and the strategic benefits and disadvantages of joining up with our neighbours. Based on current plans, the financial modelling shows there is a very small difference in the costs to the end user whether we go it alone or join up with our neighbours. This will be confirmed through the work over the next few months.
Read the government's guidance for local authorities and the options
Local Water Done Well is being implemented in three stages, each with its own piece of legislation.
After the repeal of the previous government's water services legislation, the Local Government (Water Services Preliminary Arrangements) Bill was introduced to Parliament on 30 May and became law in August 2024.
Key requirements in the Act are:
- Councils must develop Water Services Delivery Plans by 3 September 2025
- Plans must outline future water services delivery arrangements, and for councils to commit to an implementation plan
- Councils’ plans must include information about their water services operations, assets, revenue, expenditure, pricing, and projected capital expenditure, as well as necessary financing arrangements, as a first step towards future economic regulation
A further Bill, providing more detail, is expected to be introduced in December 2024 and is expected to become law in mid-2025.
This will put in place the long-term requirements that Whanganui District Council will have to meet.
More information on the legislation is available from the Department of Internal Affairs.
Managing our water infrastructure is a substantial part of the council’s day-to-day operations and makes a significant contribution to the well-being of our district.
About 80% of our capital investment is being spent on water services, roading and footpaths over the next 10 years.
This includes a $30 million plus long-term programme of wastewater and stormwater network improvements across our district to improve their performance during weather events, and increased investment in the water supply to meet the new standards such as adding UV disinfection.
The quality of water we provide is regulated by Taumata Arowai – find out more about its role.
Drinking water
We manage five water supply schemes throughout the district, the largest of which is Whanganui’s urban water supply. The other water schemes are Fordell, Pākaraka, Mowhanau and Westmere rural water supplies.
Our water supply assets include:
• six bores
• five treatment plants, 17 pump stations, 29 reservoirs
• about 540 km of water supply pipelines
• 2199 hydrants
Stormwater
Stormwater is the water that runs off surfaces like roofs, roads, driveways and footpaths.
Our stormwater network includes:
• about 174km of pipeline
• Over 3,459 manholes
• 18km of open channel
• 11 retention and filtration basins to treat stormwater run-off and help prevent flooding
Wastewater
Wastewater is the used water that drains from your sinks, bathroom or toilet.
Wastewater reticulation systems are provided in the Whanganui urban area, Mowhanau and Marybank.
Our wastewater network includes:
• Two treatment plants (the biggest is on Airport Road)
• 38 sewer pump stations
• About 289km of pipeline
• About 4781 manholes
• An ocean outfall approximately 1.7 km off South Beach.
In 2016 a community outbreak of gastroenteritis in Havelock North resulted in about 45 hospitalisations and possibly contributed to three deaths.
The outbreak was traced to the contamination of drinking water, raising serious questions about the safety and security of New Zealand’s drinking water.
In mid-2017, following theGovernment Inquiry into Havelock North Drinking Water, the then government established the Three Waters Review to look at how to improve the regulation and service delivery arrangements of drinking water, wastewater and stormwater – the three waters – to better support New Zealand’s environment, health, and safety.
In July 2020, the Labour Government announced the Three Waters Reform Programme in response to mounting evidence of the challenges facing three waters service delivery nationally.
Modifications followed public feedback and legislation was passed under a renamed Water Services Reform Programme that would see councils across the country combined into 10 publicly-owned, specialised water service entities.
It was proposed Whanganui would form part of a proposed Manawatū/Whanganui water services entity, that would also include six neighbouring territorial authorities – Palmerston North City Council and Rangitikei, Ruapehu, Manawatū, Horowhenua and Tararua district councils.
Following the October 2023 general election, the new coalition government announced it was repealing the previous Three Waters legislation.
Learn more about our response to the previous Three Waters policy here