The future of Tasman water services – have your say

How should we manage drinking water, wastewater, and stormwater services in the future. This consultation is part of our response to the Government’s Local Water Done Well programme.

Local Water Done Well is intended to ensure people pay cost-reflective prices for water services, that those services are delivered to an acceptable quality, and that water services providers are investing sufficiently in infrastructure.

We’re required to submit a Water Services Delivery Plan by 3 September this year, and your input will help us decide on the best governance model.

Our preferred option is an in-house business unit, which would be managed separately from other Council operations. While still part of the Council, it would be independently monitored to ensure high environmental and customer standards.

We’re also considering two options that involve setting up a Water Council Controlled Organisation (CCO), each governed by an independent board. These models may offer long-term cost savings and operational efficiencies.

In the short to medium term, all options deliver similar financial outcomes. We’ve also agreed to keep talking with Marlborough and Buller District Councils about a possible multi-Council CCO in the future.

Other governance options – such as trust models like those used in the electricity sector – have been considered by Council but are not being pursued.

This is an important decision for the future of our water services, and we value your input.

What is “Local Water Done Well”?

“Local Water Done Well” is the Coalition Government’s plan for managing water services delivery and infrastructure following the repeal of Water Services Reform legislation (Three Waters) in February 2024.

It is intended to ensure people pay cost-reflective prices for water services, that those services are delivered to an acceptable quality, and that water services providers are investing sufficiently in infrastructure.

A key feature of the change is also to provide councils with the flexibility to determine the most suitable structure and delivery method for delivering water services to the community. One of the possible options is a council-controlled organisation (or CCO).

Any proposed new water organisation would be intended to enable enhanced access to long-term borrowing for investment in water infrastructure that supports growth and resilience of water services to customers.

What does the legislation require councils to do?

The most recent legislation, Local Government (Waters Services Preliminary Arrangements), enacted in September 2024 requires us to draft a Water Services Delivery Plan (WSDP). This plan sets out how our water services will be delivered in a sustainable way and meet future health, economic and environmental regulations. The plan is a tool for councils to consider current and future delivery of water services. It will cover a period of 30 years.

The WSDP would need be consulted upon and submitted to the Department of Internal Affairs by September 2025.

Will the legislation affect the water services you receive?

No, your water and wastewater services will not be affected. We will continue to provide quality services to residents and ratepayers as we look to explore the best service delivery model for the future of our community. This potentially includes working with neighbouring councils.

Our focus is to ensure residents continue to receive quality and value in their water services.

Next steps

We are preparing a indicative business case, which will be guided by Treasury’s Better Business Case model, to explore service delivery options under the Government’s new framework.

The indicative business case will investigate a number of options for water service delivery and consider any potential impacts on the organisation.