A major Government-led reform of New Zealand's drinking water, wastewater and stormwater services (the 'three waters') is under way. We're working through understanding what it could mean for our community.
Read Christchurch City Council's submissions on the Water Services Legislation Bill and Water Services Economic Efficiency and Consumer Protection Bill.(external link)
At the moment, New Zealand's drinking water, wastewater and stormwater (the 'three waters') services are mostly provided by 67 local councils, including ours.
However, councils around the country are facing a number of challenges, including:
There are also increasing concerns about the quality of New Zealand's drinking water and the safety of the infrastructure that delivers it.
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.
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.
The Government is establishing four publicly owned water services entities across New Zealand.
Christchurch is included in ‘Entity D’, which comprises the Ngāi Tahu takiwā – the tribal boundary that covers most of the South Island.
This entity will provide drinking water, wastewater and stormwater services to a population of more than 850,000 people.
The proposed structure will see the 20 councils in most of the South Island represented by six elected members and six iwi representatives in a Regional Representative Group.
The Regional Representative Group will appoint an independent selection panel, which in turn would appoint the water entity’s board members.
The board members will independently govern the entity.
Councils will be the owners of the entities, on behalf of their communities. Ownership will be enabled through shares assigned to each council per 50,000 people in its district, with at least one share for each council.
Read the Government's frequently asked questions about the entities(external link).
On 15 July 2021, the Government announced a three waters support package.
The $2 billion package has been pre-allocated to councils based on a nationally consistent formula, and is available in two tranches. The first $500 million of Crown Funding was made available from 1 July 2022 and the remaining $1.5 billion is available from 1 July 2024, when ‘Entity D’ is operational.
Christchurch will get $122.4 million, and this money can go towards projects that meet specific criteria related to improving resilience to climate change, housing development, and community wellbeing.
Read the Government's frequently asked questions about the support package [PDF, 745KB](external link).
The Government's main objective of the Three Waters Reform Programme is to provide a more efficient and consistent way of delivering three waters 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 Three Waters Reform Programme can be summarised as follows:
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.
In some parts of the country, it is becoming increasingly unaffordable for councils, especially smaller councils with fewer ratepayers, to provide safe and reliable three waters services.
Increasing flooding events and sea-level rise will put pressure on three waters infrastructure and services. The Government is concerned about the ability of councils to meet this challenge without reform
With 67 councils providing three waters 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.
Through stage one of the reform process, the Government concluded there is ongoing underinvestment in three waters 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.
The Government wants to deliver on its Treaty of Waitangi obligations, including improving outcomes for iwi/Māori in relation to three waters service delivery and upholding Te Mana o Te Wai – the vital importance of water.
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.
Christchurch City Council is the largest council in Aotearoa New Zealand that directly owns and manages three waters infrastructure on behalf of the community.
We have a large and complex three waters 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.
The Government’s water reform programme will see our three water assets transfer to the new entity, alongside the three water assets of 19 other South Island councils.
This is a 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 Entity D begins operating in July 2024. We’re organising and optimising our workforce, assets, operations, data, and finances now so we’re in the best shape possible for the transfer.
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.
The Council remains opposed to the model proposed in the Government’s Three Waters reform – as evidenced by its recent submission on the Water Services Entities Bill(external link). While opposing the model of reforms we do want to work constructively with central government and our partners to improve the model for our communities and ultimately to achieve the desired outcomes of the reform.
The Water Services Entities Bill and Water Services Economic Efficiency and Consumer Protection Bill are currently out for public consultation. Consultation closes on 12 February.
Council staff are actively involved in numerous working groups at a national and regional level to support the transition.
Water reform discussions under way(external link) 6 Aug 2020
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