Growth and government requirements are driving a massive increase in water infrastructure investment across Hamilton City and the Waikato district.
The two councils are signalling a joint investment of $3.6 billion in water and wastewater over the next decade. Of that investment, 67% ($2.4 billion) is driven by growth, noting a forecast 22% increase in households or businesses needing water services.
The investment will be managed by IAWAI Flowing Waters, the councils’ jointly owned company which will become fully operational from next July.
The numbers are outlined in a joint Water Services Delivery Plan set to be approved by the Hamilton City Council this week. Waikato District Council will consider the same draft Plan on June 30.
The government requires all Water Services Delivery Plans to show how local authorities plan to deliver water services, meet environmental and health regulations, make the right investments at the right time, and secure enough revenue and debt to do the work planned. Plans must prove they can keep up with growth and be financially sustainable.
For Hamilton and the Waikato District, staff are recommending some strategic water projects be delegated to IAWAI Flowing Waters from July 1, 2025. This would be an interim arrangement before all waters activity, plus around 270 staff, are transferred to the company – a Council Controlled Organisation (CCO) – on 30 June 2026.
HCC’s general manager - infrastructure and assets Andrew Parsons said the immediate transfer of key projects would allow the company to quickly begin realising mutual cross-boundary benefits as well as access better debt arrangements not available to councils.
Despite the huge investment planned, there was absolutely no change to the rates increases already forecast and budgeted by each shareholding council, he said.
“These core investments in infrastructure have already been well signalled and planned and are already budgeted. Working together in a new company structure means we can deliver a lot more in terms of critical water projects and do it faster. Put simply, it means we can get more done faster, and for less.”
Strategic projects include the reconfiguration and upgrade of wastewater plants at Huntly, Ngaaruawahia and Pukete along with planning work on a new wastewater plant for the south of the city and surrounds. Other projects include the introduction of residential water meters in Hamilton and long-term water servicing strategies for Tuakau, Pookeno and Te Kowhai.
The plan also outlines water infrastructure plans for Peacocke, Rotokauri and Ruakura and well as housing intensification in Hamiton city.
“We’re also budgeting and planning for replacement of some key water assets that will reach the end of their life in the next decade,” Parsons said.
Once approved, the joint Water Services Delivery Plan will be sent to the government for approval. In the meantime, IAWAI Flowing Waters will begin work on the development of a 10-year Water Services Strategy, guided by a Statement of Expectations set out by shareholders.
