Councils’ Water Plans Approved, Boosting Investment Under Local Water Done Well

According to Watts, the completion of this process sets the foundation for more reliable, financially sustainable services for millions of ratepayers.

Local Government Minister Simon Watts has confirmed that all councils’ water service delivery plans under the Government’s Local Water Done Well reform programme have now been fully assessed—marking a major milestone in reshaping how drinking water, wastewater, and stormwater services will be managed across the country. According to Watts, the completion of this process sets the foundation for more reliable, financially sustainable services for millions of ratepayers.

Under the framework, councils could choose to manage their water assets directly (in-house) or join forces with neighbouring authorities through a council-controlled organisation (CCO). Of New Zealand’s 67 councils, 44 opted for the CCO model while 23 chose the in-house option. With the majority selecting the shared-services pathway, approximately 76 percent of New Zealanders will receive water services through a CCO structure.

Watts said this level of collaboration represents a significant step toward addressing long-standing affordability and infrastructure challenges. Financial analysis from the Department of Internal Affairs shows that councils’ revised delivery plans indicate a substantial increase in investment compared to earlier long-term plan forecasts.

“Councils will collectively spend nearly $9 billion more on water infrastructure over the next decade than previously planned,” Watts said. “The total estimated investment—$47.9 billion—reflects a strong acknowledgment that after decades of underfunding, critical upgrades can no longer be delayed.”

Under Local Water Done Well, councils and their water organisations are required to meet regulatory compliance for drinking water, wastewater, and stormwater infrastructure—an obligation that did not previously apply within long-term planning. Minister Watts emphasised that this shift is essential for reversing historic underinvestment and modernising ageing networks.

“We need to fix the pipes, address widespread non-compliance, and prepare for population growth. This means striking a balance between current needs and future demands,” he said.

The reform also aligns water service funding with utility-style financing models, enabling costs to be spread across the full lifespan of infrastructure assets. This is expected to alleviate pressure on ratepayers while ensuring projects proceed at the scale required.

The nationwide uplift in planned capital works is expected to generate significant economic activity. Government analysis indicates that approximately 9,000 new workers will be needed in the water sector over the next ten years, creating opportunities across engineering, construction, project management, and technical trades. Watts noted that building this workforce will be a challenge but represents an important avenue for economic growth and regional employment.

The Minister commended councils and communities for their cooperation in implementing one of the most consequential overhauls of water service delivery in a generation.

“Local Water Done Well has focused on delivering the investment Kiwis need while protecting local decision-making. Achieving this level of reform in under two years is a testament to the commitment of councils across the country.”