Local Water Done Well

Local Water Done Well is a central-government mandated initiative to address concerns about Aotearoa New Zealand’s water infrastructure and water quality.

It seeks to do this by:

• Requiring councils to develop a fit-for-purpose plan to deliver water services to its residents.
• Ensuring water services are future-proofed and financially sustainable.
• Introducing greater central government oversight, and economic and quality regulation.

Background

Rangitīkei District Council is responsible for the delivery and management of water services (drinking water, wastewater, and stormwater) for the Rangitīkei District. Like councils across Aotearoa New Zealand, the Rangitīkei District is facing varied and increasingly critical challenges maintaining and future proofing its water services.

Successive governments have recognised these challenges and introduced models to support councils. These models have included ‘Three Waters’ and ‘Affordable Water Reforms.’ Local Water Done Well is the current coalition government’s water services model. It was introduced shortly after their election in October 2023.

To put it simply, while Three Waters and Affordable Water Reforms took a centralised view of the way water services are managed, Local Water Done Well takes a more localised view – with central government oversight.

Local Water Done Well requires councils across Aotearoa New Zealand to develop a Water Services Delivery Plan

By September 2025, councils nationwide are required to develop a Water Services Delivery Plan that outlines how it will deliver and sustainably finance the water services it maintains into the future.

Each council’s Water Services Delivery Plan must deliver to guidelines created by central government. The plan must include:

• How the council plans to deliver water services to its residents – a ‘water services delivery arrangement’.
  
• How its water services delivery arrangement will be implemented.
  
• How the council plans to maintain water quality, and the long-term financial sustainability of its water services delivery arrangement.

Determining a water services delivery arrangement for the Rangitīkei – a regional approach

Before writing the Water Services Delivery Plan, Rangitīkei District Council needs to decide on the most practical water services delivery arrangement for our district:

1. Maintain sole control of all water services. This could practically be implemented in one of two ways:
   1. In-house management (this is the current model, with revenue and expenditure ring-fenced from other council activities).
      
   2. Develop a Rangitīkei District Council Controlled Organisation (CCO).
2. Adopt a joined-up approach with one or more neighbouring councils. This could practically be implemented in one of two ways:
   1. In-house management spread across partnering council(s).
      
   2. Develop a Council Controlled Organisation (CCO) with one or more partner council(s).
3. Adopt a consumer trust model. The development of a consumer trust would involve water consumers electing trustees (in a similar way to local body elections). These elected trustees would play a role in appointing and monitoring the performance of a 'water organisation board'. This could also practically be implemented in one of two ways:
   1. Adopt a wholly consumer owned trust – where elected trustees have a sole role in appointing and monitoring performance of a water organisation board.
      
   2. Adopt a mixed council/consumer owned trust – where council and elected trustees both have a role in appointing and monitoring performance of a water organisation board.

It is important to note no decisions have been made at this stage. Council staff and elected members are very much in a period of understanding and exploring the options available.

As part of exploring and analysing our options, we have been working with councils in the Manawatū/Whanganui region to understand what a joint-council water services organisation could look like.

What do you think?

Staff and elected members are interested in your early questions on the Local Water Done Well approach to water services delivery. We would like to invite you to the following community meetings to discuss Local Water Done Well and what it means for the Rangitīkei:

Timeline – looking ahead

The timelines directed by central government are tight. We will have to work quickly to deliver our Water Services Delivery Plan alongside the other commitments set out in our Long Term Plan.

In December 2024, Council is expected to make a decision on the path forward. That is, whether our water services delivery arrangement will be inhouse, through the development of a CCO, in partnership with one or more neighbouring councils, or adopt a consumer trust model.

Once a decision has been made, staff will commence the formal process of finalising options for Rangitīkei District Council’s Water Services Delivery Plan for public consultation. Formal public consultation on an early draft of this plan is expected to be in early 2025.

The finalised Rangitīkei District Council Water Services Delivery Plan (or joint plan with other councils) is required to be delivered to central government by September 2025.

Summary

Rangitīkei residents deserve to have access to clean, reliable and sustainable water services.

Our aim is to deliver a Water Services Delivery Plan that is operationally and financially efficient, secure, and sustainable.

We will keep you informed as this work progresses.

Additional resources

• Water Services Policy and Legislation