One in Five Councils Secure Approval for Long-Term Water Service Plans

Taupō District Council has joined as a shareholder, opening the door to extending efficiencies and benefits to a further 40,000 residents in future years.

Local Government Minister Simon Watts has confirmed that 20 percent of New Zealand’s councils have now received approval for their long-term water services delivery plans, giving more than 2.5 million people a financially sustainable pathway for water management over the next decade and beyond.

Progress Under Local Water Done Well

The plans, developed under the Government’s Local Water Done Well framework, are designed to ensure councils can provide safe, affordable, and sustainable water services while easing financial pressures on communities. Tools such as the Watercare Charter are being used to guide collaboration and maintain accountability.

Minister Watts said the quick progress shows strong local momentum. “Within two weeks of councils submitting their plans, more than 2.5 million New Zealanders now have an accepted, financially sustainable delivery approach for their water services,” he stated.

Waikato Leads with Regional Collaboration

A major development is the approval of the Waikato Water Done Well plan, which consolidates water services for more than 130,000 residents across the Hauraki, Matamata-Piako, Ōtorohanga, South Waikato, Waipā, and Waitomo Districts. The plan is being hailed as an unprecedented act of cooperation among councils.

Taupō District Council has joined as a shareholder, opening the door to extending efficiencies and benefits to a further 40,000 residents in future years. This step, Minister Watts noted, shows how councils can use shared services to strengthen delivery while maintaining local input.

Hurunui and Kaikōura Join Forces

In the South Island, Hurunui and Kaikōura District Councils have also had their combined council-controlled organisation (CCO) plan accepted. Both councils are exploring future partnerships with neighbouring local authorities, signalling a trend toward larger-scale, cost-effective shared service models.

Financial Sustainability Through CCOs

A key feature of the Local Water Done Well model is access to long-term, lower-cost finance. CCOs, unlike individual councils, can borrow at reduced interest rates, allowing them to spread infrastructure investment costs more evenly across both present and future ratepayers.

“This means coordinated infrastructure works can be planned without unfairly burdening today’s households,” Minister Watts explained. “By easing the financial pressure on councils and communities, Kiwis will be able to keep more money in their pockets.”

Options Beyond Shared Entities

While several councils are moving toward regional CCO models, some have chosen to retain in-house business units. Minister Watts emphasised that these plans are subject to the same rigorous criteria and must still demonstrate financial sustainability. Their acceptance shows the system is flexible and tailored to local circumstances.

Looking Ahead

The Minister acknowledged that water services have suffered from decades of underinvestment but stressed that Local Water Done Well is already delivering new investment nationally. “What is clear is that regardless of the delivery model chosen, this programme is providing councils with the tools and choices they need to serve their communities.”

With one in five councils now locked into approved plans, the Government expects momentum to accelerate, setting New Zealand on a path toward more reliable, affordable, and resilient water infrastructure.