MEDIA RELEASE: The first structural changes to how long-term water and wastewater costs are managed in Hamilton and Waikato District were locked in this morning.
IAWAI, the new council-owned waters company delivering water services to Hamilton City and Waikato District, adopted its first-year strategy at today’s Board meeting. The new approach has a focus on cost-efficiency and fairness and is moving toward consistent fees and charges across the combined districts.
Minimising the impact of increased costs to deliver water services is a fundamental principle of the establishment of IAWAI. The Strategy confirms a reduction in water services cost increases projected by the partner councils for 2026/27.
The median residential annual increase for Hamilton has dropped from $265 to $174 per year – a decrease of $91 from that originally indicated. For Waikato District customers, increases in water and wastewater fixed charges fall from $364 to $142 per year. This combined with volumetric charges (based on an average water use of 210m3 per annum) brings the previously forecast increase in charges for Waikato District customers down to $174.
From 1 July 2026 IAWAI water charges will be shown clearly and separately alongside rates notices and billing. Residential water customers in Hamilton and Waikato District will now see two separately itemised IAWAI charges for water and wastewater along with their rates invoice. Waikato District customers will still get water meter bills twice a year. Industrial and commercial water users in Hamilton will also continue to get water meter bills.
During public consultation on the WSS, almost 80% of respondents during consultation supported a ‘growth pays for growth’ approach for new development, moving some of the burden of growth costs from existing ratepayers. As part of that wider plan, the strategy has introduced a new charge on new dwellings as a contribution to the costs of growth.
The combined drinking water and wastewater growth charges, totalling $500 for a new dwelling and $250 for a new secondary minor dwelling – or ‘granny flat’ – will be applied to the property as an ongoing annual charge for 25 years from the time building is complete.
In response to submissions, proposed waters growth charges for non-residential developments will not be applied this year. These charges will be developed further and re-considered as part of next year’s Water Services Strategy.
IAWAI Chief Executive Peter Winder says the significance of the new growth charges is greater than just their financial contribution.
“We need a $2 billion investment in waters infrastructure to cope with predicted growth in our region. It’s important that existing customers don’t unfairly pick up the tab for the costs of growth.
“We can’t change systems developed over decades overnight, but the growth charge is a first step. It signals we are building a fairer, transparent and above all sustainable funding model for waters.
“Growth is important, it creates jobs, boosts our economy and builds our communities. But we have to build the infrastructure before the growth happens. This means there’s an unavoidable gap between when we need to spend for growth and when the new residents start contributing. To reduce impact on today’s consumers, we carry that shortfall through debt and offset it through Development Contributions and this new growth charge.
“We know the costs to deliver water services are going to rise but IAWAI is using every tool we have to keep these increases as low as possible. It’s this approach that has let us deliver water charges for this year which are substantially lower than those predicted by our councils on their own.” Winder said.
Alongside the Strategy, the Board also adopted its Fees and Charges schedule, which looks to confirm consistent charging across the IAWAI service area. Currently the two councils each have their own fees and charges schedule. Where possible, water and wastewater fees based on hourly rates for specific connection or consenting activities have been standardized. In some cases, this has meant larger increases for some charges.
“Through the Water Services Strategy consultation, we identified there would be some larger initial rises, particularly for some consenting or connection hourly rate charges in the Waikato District. Making the change immediately, rather than over time, means we provide certainty and consistency of charging for the same service, regardless of where in our region the work is done,” Peter Winder said.
Trade waste quantitative charges (volumetric and contaminant based) have increased by 15% reflecting significant changes in the operating costs for treatment plants.
Peter Winder said today’s decision is another step on the journey for long-term change.
“This is our first Water Services Strategy, and the views of our community helped shape the final version. We appreciate the feedback from our partners and our communities as this puts us in a good space for the development of IAWAI’s second WSS in 2026-2027.”
