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Three Waters Reform

Three Waters Reform Programme

In July 2020, the New Zealand Government launched the Three Waters Reform Programme – a three-year programme to reform the service delivery arrangements of drinking water, stormwater, and wastewater.

Key features of the current proposal by Government would see that water services are delivered by four entities across New Zealand. Until the final proposal has been confirmed, local authorities will remain responsible for these services.

To stay informed with the Three Waters Reform Programme refer to the Department of Internal Affairs website or the Three Waters website.

The Department of Internal Affairs (DIA) has developed an entity map, highlighting the boundaries of the proposed four entities. Waikato District would fall within 'Entity B'. 

Three Waters Reform Map

WDC feedback letter and report to DIA

FAQ

Why does Government think change is needed?

The New Zealand Government have indicated that between $120 billion and $185 billion needs to be invested over the next 30 years to meet drinking water and environmental standards and provide for future population growth.

The government believes that through reform, the costs for our households and communities over time will reduce substantially.

The government claims that separating New Zealand into four entities strikes the right balance between economies of scale and the needs and interests of local communities. The research supports this, indicating that entities that deliver services to at least 600,000 to 800,000 connections, can achieve significant efficiency gains. 

What will the proposed reform mean?

The reform would bring together the drinking water, stormwater and wastewater (three waters) services, currently delivered by 67 different councils across New Zealand, into four competency-based water services entities. These entities will remain firmly in public ownership (by the communities they serve). Reform would also improve transparency about the delivery and costs of these services and uphold the Crown's Treaty of Waitangi obligations to iwi/Māori.

What does the government want to achieve with the reform?

The three waters reform programme sets out to improve the health and wellbeing of all New Zealanders. It will improve the safety, quality, and environmental performance of drinking water, wastewater and stormwater services in a way that is considerably more affordable per household than the current delivery structure. 

Who will own the assets? 

The proposed entities will be the owners of the assets, with the councils within owning the entity. The assets continue to belong to the public. 

Will we be handing 50% of our waters assets to iwi?   

No – it is proposed that iwi will have an equal share into how the entities are developed and how they are managed and operated, but are not owners of the assets.

Who will run the entities?

A Regional Representative Group will set expectations for the entity and select an independent panel to appoint the board. The representative group will comprise a portion of local authority members and mana whenua. The board will govern the entity and appoint a Chief Executive who will manage the operations for the entity.

Will I be charged for water?

Initially, the way you pay for water you will continue to be same. Over time, the Entity may wish to make some changes the way water is paid for consistent across the entities area.

As an example, areas without water meters may have water meters installed so waters users can pay for the actual water they consume.

At this time, we are unsure what changes the Entity may want to bring that would alter how Waikato residents pay for water in the future.

Is this just about drinking water?

No, the Government’s proposed reform will cover drinking water, stormwater and wastewater (sewage).

What about private water supplies?

Impending legislation will require private water supplies to meet new drinking water standards. These standards will be set by the water regulator Taumata Arowai. Council or the new entity would be responsible for ensuring these standards are met by the private water supplies. 

Will we be better or worse off?

Government has put a funding package together and stated that no councils will be worse off through the reforms and all communities will be better off. Funding is provided to support councils through any transition process, and to ensure the financial impacts of reform will be managed appropriately.

What entity region would Waikato District Council be in?

Waikato District Council would form part of a central North Island entity known as ‘Entity B’. The 22 councils in proposed Entity B would include the greater Waikato, Bay of Plenty, Taranaki, and parts of Manawatu-Whanganui. 

 

Entity B - Three Waters Portrait

Will this mean I pay less for water services?

The government has indicated than with reform, costs will be substantially lower over time. However, currently it is unlikely costs will be lower in the short term. A very large investment is needed to provide improved and sustainable three water services.

Is this a step toward privatisation?

No. In fact, further safeguards against future privatisation are being developed through legislation, making it more difficult to privatise than it is now. Continued public ownership of three waters water services and infrastructure is a bottom line for the government. 

Will regional entities change the service levels we get now?

The reform programme includes new oversight and reporting provisions which will give communities more security about service levels than currently. This will include a regulator (Taumata Arowai) and an economic regulator who will set and review the implementation of new compliance standards. It is also proposed that a new Ombudsman be appointed.  The Ombudsman would handle complaints and investigate the administrative conduct of the water entities, including in relation to official information act inquiries. The ombudsman is completely independent of the water entity.  Each entity will be required to engage with communities in a meaningful and effective manner on key documents. The entities will be required to publish these, to report on how consumer and community feedback was incorporated into decision-making. Entities will also be required to set up a forum to assist with effective and meaningful engagement.

 What will happen to Council's waters staff?

Under the government proposal, all staff who work primarily on water will be guaranteed a role at the new water service entities that retains key features of their current role, salary, location, leave and hours/days of work. A more customised approach is required for senior executives, other staff and contractors.

When will public consultation occur?

Late October 2021, Government announced they will be proceeding with reform and will introduce legislation to establish four publicly owned entities to manage the country’s water resources. On this basis, formal public consultation will not be occurring.

What is the timeline?

Timeline of Three Waters Reform Programme

Where can I get more information?

The latest Government information and releases is uploaded to the Department of Internal Affairs website here: https://www.dia.govt.nz/Three-Waters-Reform-Programme

What waters assets does Council have?

WDC has a large number of assets within our three waters portfolio including:

Watermains lengths (kms):

Stormwater = 180.50km

Wastewater = 341.00km

Water supply = 826.10km

Total length of all watermains combined = 1347.60km

 

Pump stations:

Stormwater = 3

Wastewater = 96

Water supply = 14

Total pump stations = 113

 

Treatment plants:

Stormwater = not applicable

Wastewater = 9

Water supply = 7

Total treatment plants = 16

 

Our assets are extremely valuable and require a large amount of maintenance to keep them in good condition to deliver water services across the Waikato District. To replace all of the assets in our three waters network would cost an estimated $548 million.

 

 

 

Media Releases

Waikato District Council welcomes support for sector through three waters reform

* Updated to include additional comments from Mayor Allan Sanson on 9 August 2021

Waikato District Mayor Allan Sanson has welcomed the release of further information about central government's water reform agenda, including a $2.5+ billion support package for Councils and more detailed information about how a transition would happen, should it go ahead.

“WDC looks forward to continuing to work with central government, Iwi, mana whenua and neighbouring local authorities on the future of three water services, which we know from modelling through our long-term plan are rapidly becoming unaffordable for our communities," said Mayor Sanson.

“Our sector [local government] acknowledges there is a need for change in water delivery nationally, but we have called for meaningful community engagement to test government’s modelled assumptions, to ensure there are checks and balances and to understand this impact alongside other reform like the Future of Local Government.”

“Central government coming to the party with newly announced investment is welcomed, including a minimum of $31 million pledged to support Waikato District Council, but this is about more than money. Understanding the impacts specifically for our community, our environment, our people and our assets – seeing as we’ve already transitioned management of our three waters operation to Watercare Ltd in 2019 – is what comes next for us.” 

"We know we have to provide a response to Government by the end of September 2021 about what the issues are for our Council, and we will do that. We also know that we don't have to make a decision about opting in or out just yet. Once we provide feedback to Government, Cabinet will make a decision about the way forward," he said.

Waikato District Council has been working with many other councils across Waikato, the Bay of Plenty, Taranaki, and Manawatu to understand and fully prepare for water reform, should it happen. This is the most complex change in local government for 30 years, and the costs and benefits will not fall evenly at the national, regional and local level.

Waikato District Council will consider all the three water reform package details carefully, including the impacts of Watercare [its current provider] and the Auckland area being part of a different regional waters entity area to the Waikato District. Waikato District Council will continue to advocate for the best outcomes for its community.

The key features of the proposals are that water services would be delivered by four entities. This includes drinking water, wastewater treatment and disposal, and stormwater. The new entities would officially begin operating from 1 July 2024.  Local authorities would remain responsible for these services up to that point.  

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