FAQs

Local Water Done Well (LWDW), is a programme of reforms introduced by the Government in February 2024 that replaced what was known as Three Waters Reform (Three waters refers to our water, wastewater and stormwater services).

LWDW is the government’s plan to address New Zealand’s long-standing water infrastructure challenges. It recognises the importance of local decision-making and flexibility to determine how water services will be delivered in the future. Councils can choose to deliver water services either by themselves or with other councils. It will do this while ensuring a strong emphasis on meeting economic, environmental and water quality regulatory requirements.

We are talking about Council owned and managed water services related to:

Drinking water - what comes out of the tap that you drink, cook or clean with.

Wastewater - what goes down the drain when you use your bathroom, laundry and kitchen.

Stormwater – rainwater that flows over land and into streams and rivers

Stormwater services are very complex. They are dependent on and influence many other council services and activities including roading, parks and land management, and growth planning. They are very different between each council, and at this stage will be best delivered under each council.

So, the three Taranaki district councils have agreed that they will keep control of stormwater services at this time. That position may change in future, but the current consultation proposal for a joint Taranaki water service delivery model is for drinking water and wastewater services only.

New Zealand has a number of water infrastructure challenges. These include:

• Ageing infrastructure that needs to be repaired or replaced.
• Historical under-investment.
• Some source water contamination.
• The need to comply with new health and environmental standard means a lot of money needs to be spent on upgrading/building new infrastructure (particularly in wastewater plants).
• Higher consumer expectations.
• Population and economic growth
• The need to make our infrastructure resilient to meet the impacts of climate change and natural hazards.

All of which adds up to significant future cost increases for Councils and ratepayers.

We are required to have a Water Service Delivery Plan outlining our approach to delivering water services submitted to the Department of Internal Affairs no later than 3 September 2025. 

Since March 2024 our Council has been looking at several different options for the future delivery of water services including delivering water independently, as well as working with the Stratford and New Plymouth district councils to consider what joint water services delivery could look like in Taranaki.

This outlines how we will deliver drinking water, wastewater and stormwater services, and must include financial and asset information and any investment required. The plans are a way to demonstrate our commitment to provide services that meet regulatory requirements, support growth and urban development, and that are financially sustainable.

The Local Water Done Well Legislation is being implemented in three stages, each with its own piece of legislation.

1. The first piece of legislation was passed in February 2024 to repeal all previous water services legislation.
2. The second was the Local Government (Water Services Preliminary Arrangements) Act which was enacted on 2 September 2024 and lays out the foundations for the next stage of water reform. These are:
   • Councils must develop and submit Water Services Delivery Plans (WSDPs) within 12 months of the bill’s passing.
   • Basic "economic regulation" through information disclosure requirements.
   • Enabling councils to design the structure, delivery method and funding and financing arrangements for their water services.
   • Councils are required to submit a WSDP by 3 September 2025. We need to consult with our community on the plan, which must demonstrate how, whatever model we go with, we would achieve financial sustainability by 1 July 2028.
3. The third piece of legislation, Bill 3 (Enduring Settings) was introduced in December 2024 to cover a framework for economic regulation and the more detailed powers and duties of the water CCOs. This Bill is expected to become law sometime in mid-late 2025.

You can learn more about these reforms here: https://www.dia.govt.nz/Water-Services-Policy-and-Legislation

Since March 2024 we have been looking at several different delivery options for water services, including delivering water independently, as well as working with Stratford and New Plymouth district councils to consider what joint water services delivery could look like in Taranaki. 

At the Policy and Services meeting on 22 October 2024, Council decided to undertake more in-depth investigations into two models of water services delivery: 

1. South Taranaki District Council in-house water services business unit,
2. regional (Taranaki) water services council-controlled organisation (WSCCO).

Read the agenda here, the report to Council is on page 63 of the agenda.

Over the following months, elected members were presented with more information on ownership/structure options, governance arrangements, timeframes and delivery costs, and transition planning.

On 25 February 2025, Council met to decide which model was their preference for consultation purposes. 

In a 7 to 4 vote a joint approach in the form of a regional Water Services Council Controlled Organisation (CCO) was confirmed as the preferred option for public consultation.

The discussion reflected the complexity and importance of the decision in front of the council, noting that both options have their advantages and disadvantages. One thing that was made clear by the elected members was the desire to hear from their community on what they believe is the best long-term option for the Stratford district.

You can read the meeting's report here. And the minutes from that meeting here.

It's important to note that this was a decision about options for public consultation. No final decision will be made on how we will deliver water services in the future until public consultation has been concluded.