Local Water Done Well

What is Local Water Done Well?

Local Water Done Well (LWDW), is a programme of reforms introduced by the Government in February 2024 that replaced what was known as Three Waters Reform. (Three waters refers to our water, wastewater and stormwater services)

This is the government’s plan to address New Zealand’s long-standing water infrastructure challenges. It recognises the importance of local decision-making and flexibility to determine how water services will be delivered in the future. Councils can choose to deliver water services either by themselves or with other councils. Each option has advantages and disadvantages.

The main changes from the previous water reform approach are:

• The Three Waters Reform has been repealed, and the co-governed water service entity model scrapped.
• Council ownership and control has been restored.
• Strict rules for water quality and investment in infrastructure have been set.
• Councils must demonstrate that water services are financially sustainable.

Legislation

The Local Water Done Well Legislation is being implemented in three stages, each with its own piece of legislation.

1. The first piece of legislation was passed in February 2024 to repeal all previous water services legislation.
2. The second was the Local Government (Water Services Preliminary Arrangements) Act which was enacted on 2 September 2024 and lays out the foundations for the next stage of water reform. These are:
   • Councils must develop and submit Water Services Delivery Plans (WSDPs) within 12 months of the bill’s passing.
   • Basic "economic regulation" through information disclosure requirements.
   • Enabling councils to design the structure, delivery method and funding and financing arrangements for their water services.
   • Councils are required to submit a WSDP by 3 September 2025. We need to consult with our community on the plan, which must demonstrate how, whatever model we go with, we would achieve financial sustainability by 1 July 2028.
3. The third piece of legislation, Bill 3 (Enduring Settings) was introduced in December 2024 to cover a framework for economic regulation and the more detailed powers and duties of the water CCOs. This Bill is expected to become law sometime in mid 2025.

Learn more about these reforms here: https://www.dia.govt.nz/Water-Services-Policy-and-Legislation

What's been happening in South Taranaki?

Since March 2024 we have been looking at several different delivery options for water services, including delivering water independently, as well as working with Stratford and New Plymouth district councils to consider what joint water services delivery could look like in Taranaki.

In September 2024 Council decided to undertake more in-depth investigations into three models of water services delivery:

1. South Taranaki District Council in-house water services business unit,
2. South Taranaki District Council-controlled organisation and;
3. regional (Taranaki) water services council-controlled organisation (WSCCO).

Following that meeting, elected members have been busy reviewing information on structure options, governance arrangements, financial sustainability, timeframes and delivery costs for these models in the lead up to this week’s (February 26) meeting.

What’s happening now?

On 26 February 2025, our Council met to decide which models they would consult with the public about, and which one was their preference.

Further investigation showed that a South Taranaki council-controlled organisation on its own was not financially sustainable, which left two remaining options, a South Taranaki District Council in-house business unit and a regional (Taranaki) water services council-controlled organisation.

After robust debate, the Mayor and Councillors agreed (voting 7- 4) to consult with the public on both options, with their proposed model being a joint Taranaki regional water entity with New Plymouth and Stratford District Councils'.

The discussion reflected the complexity and importance of the decision in front of the council, noting that both options have their advantages and disadvantages. One thing that was made clear by the elected members was the desire to hear from their community on what they believe is the best long-term option for South Taranaki.

You can read the meeting's report here.

It's important to note that this was a decision about options for public consultation. No final decisions have been made yet on how we will deliver water services in the future.

Looking ahead

The consultation material for this decision will be developed over March 2025 and then adopted for public release. The consultation document will outline both options and identify the preferred proposal as being the joint Taranaki regional water entity.

Consultation will run from 30 April to 30 May 2025.

After consultation, elected members will make their final decision on the Water Services Delivery Plan (WSDP) to be submitted to central government. The WSDP needs to be submitted by 3 September 2025 and is subject to approval by the Department of Internal Affairs.