September 17th, 2024

Major water reforms announced: savings of $2,770-$5,400 per household projected by 20541

The move aims to save households between $2,770 and $5,400 per year by 2054 and enhance the country's water infrastructure.

These reforms aim to enhance the quality of water services, prevent further rate increases, and improve health and environmental outcomes for New Zealand communities.
These reforms aim to enhance the quality of water services, prevent further rate increases, and improve health and environmental outcomes for New Zealand communities.

The New Zealand Government has announced plans to establish 10 new regionally owned and led public water entities following consultation with local governments, a government media release said today. The move aims to prevent a rates blowout and save households between $2,770 and $5,400 per year by 2054, while addressing the country's water infrastructure deficit.

Local Government Minister Kieran McAnulty asserts that the reforms are crucial to avoid unaffordable rate bills, as the cost of upgrading New Zealand's water systems is projected to reach up to $185 billion over the next 30 years. Without these reforms, rates could increase to as much as $9,730 per year by 2054.

The 10 new entities will be owned by local councils on behalf of the public, with borders based on existing regional areas. Each entity will be run by a professional board, with members appointed on competency and skill. Strategic oversight and direction will be provided by local representative groups with every local council in the country, as well as mana whenua, ensuring all communities have a seat at the table.

The water services entities are expected to start delivering water services from 1 July 2026 at the latest, with some able to proceed earlier if ready. McAnulty emphasised that these once-in-a-generation reforms are vital for addressing long-running problems that have resulted in rapidly rising rates, poor health and environmental outcomes, deteriorating infrastructure, and wide variation in service quality.

The Government's decision to establish 10 new regionally led entities was influenced by feedback from local government leaders and stakeholders, who stressed the importance of addressing the water infrastructure deficit while ensuring that the reform programme is led at a regional level.

The recent flooding and cyclone events have highlighted the urgent need for investing in the country's water infrastructure to improve community adaptation and resilience. Minister McAnulty noted that the extreme weather events have exposed the fragility of critical water infrastructure in some areas and emphasised the importance of water services, especially stormwater.

The water services entities are expected to start delivering water services from 1 July 2026 at the latest, with some able to proceed earlier if ready.
The water services entities are expected to start delivering water services from 1 July 2026 at the latest, with some able to proceed earlier if ready.

The partnership between council representatives and iwi/Māori in regional representative groups will provide strategic oversight and direction to the entities, making certain that the needs of every community, particularly small rural towns, are heard and met.

These reforms aim to enhance the quality of water services, prevent further rate increases, and improve health and environmental outcomes for New Zealand communities. By working closely with local councils, the Government hopes to ensure a smooth transition and long-term success for these new public water entities.