Water reform

Challenges for councils

At the moment, New Zealand's drinking water, wastewater and stormwater services are mostly provided by 67 local councils, including ours.

However, councils around the country are facing a number of challenges, including:

• large debt and affordability issues
• meeting safety standards and environmental expectations
• building resilience to natural hazards and climate change into their three waters networks
• supporting the growth of their communities.

There are also increasing concerns about the quality of New Zealand's drinking water and the safety of the infrastructure that delivers it.

New water regulator - Taumata Arowai 

The Government's inquiry into the 2016 drinking-water contamination outbreak in Havelock North, and the following Three Waters Review, has led to the introduction of a new national regulator for water services called Taumata Arowai(external link).

Taumata Arowai has responsibility for overseeing and enforcing new drinking-water regulations and providing oversight of the environmental impacts of wastewater and stormwater.

The Taumata Arowai – Water Services Regulator Act, passed in July 2020, established Taumata Arowai as a Crown entity. 

In November 2021, Taumata Arowai assumed its role and powers as the new independent water services regulator for New Zealand under the new Water Services Act 2021, replacing the previous responsibilities of the Ministry of Health.

Legislation

The Water Services Act 2021 was passed into law in October 2021. The Act contains all of the details of the new regulatory regime for the supply of drinking water and Taumata Arowai's role and powers relating to wastewater and stormwater networks.

The Waters Services Entities Act (WSE Act) was passed in December 2022 and establishes the four new water service entities and outlines how the water services entities will be formed and operate. 

The Water Services Legislation Bill proposes amendments to the WSE Act and other Acts to varying degrees. It mostly adds new parts to give the detailed powers necessary for the WSEs to operate.

The Water Services Economic Efficiency and Consumer Protection Bill was introduced to the house on 8 December 2022. This Bill implements Cabinet’s agreement to establish an economic regulation and consumer protection regime as part of the Three Waters reform.

The Water Services Legislation Bill and Water Services Economic Efficiency and Consumer Protection Bill consultation closed on 12 February 2023.

Water services entities

The Government is establishing ten publicly owned water services entities across New Zealand. The entities will provide drinking water, wastewater and stormwater services.   

Canterbury and West Coast will form one entity. This entity includes 13 districts - Buller, Grey, Westland, Kaikoura, Hurunui, Waimakariri, Christchurch City, Selwyn, Ashburton, Timaru, Waimate, Mackenzie and Waitaki.

The entities will be owned by local councils but will be operationally and financially independent from them. 

Each entity will be governed by a professional board, with members appointed for their competencies and skills. 

A regional representative group will be established for each entity.  This group will provide strategic oversight and direction to the entity boards.

The ten new entities will go live in a staged approach, from early 2025 to 1 July 2026, rather than the original start date of 1 July 2024.  

Read the Government's frequently asked questions about the entities(external link).

Support package

The Government initially proposed 'better off' funding for Councils under the water reforms. The first phase of the funding gave Councils $500 million. A planned second phase of funding would give Councils a further $1.5 billion. 

Under the reform reset, the $500 million package remains in place. This funding will be allocated to Councils as per current funding agreements.

The Government has decided not to go ahead with the $1.5 billion second phase of funding, to meet the cost of establishing 10 entities and to make sure the new entities do not begin with high levels of debt.

The Government's main objective of the Affordable Water Reforms is to provide a more efficient and consistent way of delivering water services across the country.

It is believed that by councils and communities joining together to provide these services at a larger scale, greater efficiencies and capabilities can be achieved.

Other specific objectives of the reform programme can be summarised as follows:

Safe and reliable drinking water

For all New Zealanders and visitors. In 2016, thousands of people were infected in Havelock North by drinking water from contaminated bores. Four people died and others were left permanently disabled.

Affordable water services in the future

In some parts of the country, it is becoming increasingly unaffordable for councils, especially smaller councils with fewer ratepayers, to provide safe and reliable water services.

Climate change readiness

Increasing flooding events and sea-level rise will put pressure on water infrastructure and services. The Government is concerned about the ability of councils to meet this challenge without reform.

Same level of service for everyone

With 67 councils providing water services across the country, some communities receive a different level of service to others. The reform aims to provide a more consistent level of service for New Zealanders.

Proper investment in infrastructure

Through stage one of the reform process, the Government concluded there is ongoing underinvestment in water infrastructure in parts of the country. There may be large costs over the next 30 years as infrastructure is brought up to standard. These costs may be too much for some councils to carry alone.

Giving effect to Te Mana o Te Wai

The Government wants to deliver on its Treaty of Waitangi obligations, including improving outcomes for iwi/Māori in relation to water service delivery and upholding Te Mana o Te Wai – the vital importance of water.

All water services meeting new requirements

With a new national water regulator, Taumata Arowai, and a new economic regulator being set up, the Government is concerned councils may not be able to meet future requirements without reform.

Our water network

Christchurch City Council is the largest council in Aotearoa New Zealand that directly owns and manages water infrastructure on behalf of the community.

We have a large and complex water network that includes pipes, pumps, well heads, treatment plants, reservoirs, and a complex stormwater system made up of everything from pipes and drains to roads, parks and wetlands.

Preparing for the transfer of services 

The Government’s water reform programme will see our water assets transfer to the new entity, alongside the water assets of 19 other South Island councils.

This is one of the largest reforms in New Zealand history. It will impact all parts of our organisation and we’re preparing now to ensure we get the best outcomes for our communities and staff. We’re working with the Department of Internal Affairs (DIA) and their National Transition Unit (NTU) to ensure a smooth transition of services.

There are a number of outcomes we need to achieve before our assets are transferred. We’re organising and optimising our workforce, assets, operations, data, and finances now so we’re in the best shape possible for the transfer.

Opposition to water reform 

On 9 December 2021 the Council resolved to sign a memorandum of understanding (MoU) to work cooperatively with at least 21 other co-signing councils to convince the Government to reconsider its plans to reform water services across New Zealand. This group is called Communities 4 Local Democracy (C4LD).

Since then, the Council has recommitted to its relationship with Ngā Papatipu Rūnanga. As part of this the Council has formally apologised to the rūnanga for its failure to consult with them before deciding to join C4LD.  The Council has also withdrawn from the group.

Legislation

The Government will now introduce legislation to allow for the reform's new timeframe before this year's general election.

The Water Services Legislation Bill and the Water Services Economic Efficiency and Consumer Protection Bill are both currently before Parliament and are largely unaffected by the changes to the number and boundaries of entities and their go live date. The bills will continue their progress through parliament. 

Working groups

Council staff are actively involved in numerous working groups at a national and regional level to support the transition.

2023

• Have your say on three waters reform bills (external link)23 January 2023

2022

• Council wants re-think of Water Services Entities Bill(external link) 7 July 2022
• Mayor urges people to submit on Water Services Entities Bill(external link) 23 June 2022
• More work still needed on three waters reforms says Mayor(external link) 29 Apr 2022

2021

• Christchurch joins councils opposing three waters reform(external link) 9 Dec 2021
• Council meets with new water services regulator(external link) 3 Dec 2021
• Government's three waters decision 'extremely disappointing'(external link) 27 Oct 2021
• Mayor sends Minister letter on three waters delivery model(external link) 4 Oct 2021
• Council rejects proposed approach to water reforms(external link) 27 Sep 2021
• Three waters reform model flawed, says Mayor(external link) 22 Sep 2021
• Water survey results are in(external link) 13 Sep 2021
• Survey to gauge people's views on water(external link) 24 Aug 2021
• Canterbury mayors ask for pause in three waters reform(external link) 23 Aug 2021
• Presentation to the Three Waters, Infrastructure and Environment Committee(external link) 11 Aug 2021
• Mayor Lianne Dalziel: Too early to make call on water reforms (external link)30 Jun 2021
• Water networks key focus for investment(external link) 23 Jun 2021
• Mayor comments on Government's water reform reports(external link) 2 Jun 2021
• Chlorine-free water supply still a top priority(external link) 26 May 2021

2020

• Funding boost for water infrastructure(external link) 7 Dec 2020
• Council signs up to first stage of water reforms(external link) 25 Aug 2020
• Decision looms on stage one water reforms(external link) 20 Aug 2020

Water reform discussions under way(external link) 6 Aug 2020

Christchurch City Council submissions

• Christchurch City Council's submission on the Water Services Entities Bill(external link)(external link).

Learn more about the Government's Three Waters Reform Programme

• Government's Frequently Asked Questions about Three Waters Reform(external link)
• Government's Three Waters Reform Programme webpage(external link)
• Taumata Arowai website(external link)
• Recommendations from the Working Group on Representation, Governance and Accountability of New Water Services Entities (external link)