Govt Unveils Sweeping Overhaul of Local Government to Simplify Planning

The proposals aim to reduce duplication, simplify decision-making, improve accountability, and accelerate development by removing layers of bureaucracy that officials say are slowing down progress and confusing communities.

The Government has announced a set of major proposals that would fundamentally reshape how New Zealand's cities and regions are planned and governed—changes ministers describe as the most significant reforms to local government since 1989. The proposals aim to reduce duplication, simplify decision-making, improve accountability, and accelerate development by removing layers of bureaucracy that officials say are slowing down progress and confusing communities.

At the heart of the reforms is a new national planning system and a shift in how regional governance is structured. Ministers say the changes will create a clearer, more efficient model that supports economic growth, lowers compliance costs, and ensures environmental protection remains central to decision-making.

"These reforms would deliver the most significant changes to local government since 1989," said Minister of Local Government Chris Bishop. "Local government is meant to serve communities—not confuse them. Right now, the system is tangled in duplication, disagreements, and decisions that defy common sense. The time has come for reform."

The reforms coincide with the Government's upcoming resource management legislation, which will be introduced to Parliament in the coming weeks and is described as a once-in-a-generation opportunity to reset the entire planning system.

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A New Planning System: Fewer Plans, Less Complexity

Under the new resource management framework:

• There will be fewer plans,

• Fewer consent categories, and

• Fewer consents needed overall.

Regional councils will also have a significantly reduced role, with many functions reshaped or removed entirely. The Government argues that the current model burdens ratepayers with high costs, slow planning processes, and overlapping responsibilities between territorial and regional authorities.

To address these issues, the Government is proposing two major reforms that would reshape local governance:

1. Abolishing elected regional councillors and creating Combined Territories Boards, and

2. Introducing locally led regional reorganisation, led by those same boards.

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Proposal 1: Abolishing Regional Councillors

Under this proposal, New Zealand's 11 regional councils would no longer have elected representatives. Instead, their governance functions would transfer to new Combined Territories Boards (CTBs) made up of mayors from each territorial authority within the region.

Associate Minister of Local Government Andy Watts says the shift reflects how New Zealanders actually engage with local democracy: "When citizens vote for their Mayor, they are choosing who they want to lead local representation for the next three years. Most people know their Mayor. Few could name their regional councillor, or even the chair of their regional council."

How the New Boards Would Work

The Combined Territories Boards would:

• Govern regional matters such as planning, water, land, and catchment management

• Make decisions using a population-based voting system, ensuring both large and small communities have fair representation

• For resource management decisions, operate under a dual threshold requiring:

  • A majority of population-weighted votes and

  • A majority of total board members

This approach is intended to safeguard both urban and rural interests in decisions affecting natural resources, infrastructure, and regional environmental management.

Why Replace Regional Councils?

The Government says removing the current regional tier will:

• Eliminate duplication between regional and territorial authorities

• Reduce costs for ratepayers

• Streamline region-wide decisions on infrastructure and environmental management

• Create clearer accountability, with mayors directly responsible for regional decisions

"We're also seeking feedback on what role and powers the Crown should have on these boards," Watts said.

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Proposal 2: Locally Led Regional Reorganisation

The second major change would require each Combined Territories Board to develop a regional reorganisation plan within two years of its establishment.

These plans would review how councils within each region can best deliver:

• Infrastructure,

• Public services, and

• Regulatory functions.

Options could include:

• Shared-services arrangements

• Council-controlled organisations

• Reallocation of responsibilities across councils

• Full or partial mergers to form new unitary councils

Clear Criteria for Reorganisation

Each regional reorganisation plan must show that it will:

• Support national priorities such as housing and infrastructure

• Keep rates financially sustainable

• Deliver better services at lower cost

• Provide strong leadership and accountability

• Ensure decisions are made at the right local level

• Honour all Treaty settlement commitments

• Include a practical, step-by-step implementation pathway

Plans would require approval from the Minister of Local Government, not a public referendum or poll—something the Government says is necessary to avoid stalled reforms and drawn-out local political battles.

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Consultation and Legislative Pathway

Public consultation on these proposals is now open until Friday, 20 February 2026, via the Department of Internal Affairs website.

A final reform package will be confirmed in March 2026, with legislation drafted shortly afterward.

"This is a once-in-a-generation chance to build a simpler, clearer, and more efficient local government system for New Zealanders," Bishop said. "We want a system that supports growth, protects the environment, and puts communities first."

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A Transformational Shift in New Zealand's Local Governance

If implemented, the reforms would:

• Reshape decision-making at both regional and local levels

• Consolidate governance under mayor-led regional boards

• Standardise planning processes nationwide

• Significantly reduce compliance and administrative costs

• Create clearer accountability for regional outcomes

The Government says these changes are essential to delivering more homes, enabling major infrastructure projects, increasing environmental oversight efficiency, and lifting productivity across the country.

Supporters argue that the current system is too fragmented, too slow, and too costly—while critics warn the reforms could reduce democratic representation and weaken environmental protections.

The coming months of consultation will determine how the country responds to what may become the most consequential restructuring of local government in more than three decades.