Local Water Done Well legislation
Local Water Done Well is being implemented in three stages, each with its own piece of legislation.
1. Repeal of previous water services legislation
2. Establish framework and preliminary arrangements for the new water services system
3. Establish enduring settings
Establish enduring settings
The Local Government (Water Services) Bill establishes the enduring settings for the new water services system.
The objectives of the Bill are to ensure water services are safe, reliable, environmentally resilient, customer responsive and delivered at the least cost to consumers and businesses.
The Bill was introduced to Parliament in December 2024. It reflects key policy decisions announced by the Government in August 2024.
The Bill sets out key details relating to the water services delivery system, the economic regulation and consumer protection regime for water services, and changes to the water quality regulatory framework.
It provides for:
- Arrangements for the new water services delivery system, including:
- Structural arrangements for water services provision such as establishment, ownership, and governance of water organisations
- Operational matters such as arrangements for charging, bylaws, and management of stormwater networks
- Planning, reporting, and financial management
- A new economic regulation and consumer protection regime based on the existing economic regulation regime in Part 4 of the Commerce Act which currently applies to electricity lines services, gas pipeline services, and airport services.
- Changes to the water quality regulatory framework and the water services regulator, including:
- Changes to the Water Services Act 2021 to reduce the regulatory burden of the drinking water quality regime and improve proportionality in the application of regulatory powers.
- A change in approach to Te Mana o te Wai
- A new single standard for wastewater and stormwater environmental performance.
Read the Local Government Services Bill Overview (PDF, 335KB)
Find out more about key aspect of the Bill: Future water services delivery system
Read the Bill in full on the New Zealand Legislation website.
The Bill had its First reading on 17 December 2024 and was referred to the Finance and Expenditure Committee for consideration.
Public submissions are open until 23 February 2025.
Establish framework and preliminary arrangements for the new water services system
The Local Government (Water Services Preliminary Arrangements) Act 2024 establishes the Local Water Done Well framework and the preliminary arrangements for the new water services system.
The legislation was enacted on 2 September 2024.
The Bill lays the foundation for a new approach to water services management and financially sustainable delivery models that meet regulatory standards.
Key areas included in the Act are:
- Requirements for councils to develop Water Services Delivery Plans by 3 September 2025
- Requirements that Plans outline future water services delivery arrangements, and for councils to commit to an implementation plan
- Requirements for councils to include in their Plans baseline information about their water services operations, assets, revenue, expenditure, pricing, and projected capital expenditure, as well as necessary financing arrangements, as a first step towards future economic regulation
- Streamlined consultation and decision-making processes for setting up future water services delivery arrangements
- Provisions that enable a new, financially sustainable model for Watercare, including the appointment of a Crown monitor for the interim regulation of Watercare.
- Interim changes to the Water Services Act, which mean the Te Mana o te Wai hierarchy of obligations in the National Policy Statement for Freshwater Management (NPS-FM) will not apply when the Water Services Authority – Taumata Arowai sets wastewater standards.
Find out more about Water Services Delivery Plans.
Repeal of previous water services legislation
In February 2024 the Government introduced and passed legislation to repeal all legislation relating to water services entities.
The Water Services Acts Repeal Act repealed the Water Services Entities Act 2022, Water Services Legislation Act 2023 and the Water Services Economic Efficiency and Consumer Protection Act 2023.
The Act reinstated previous legislation related to the provision of water services (including local government legislation). This restored continued council ownership and control of water services, and responsibility for service delivery.
The Act includes some transitional support options to help councils complete their long-term plans, depending on their local needs and circumstances. The Act also includes transitional provisions that enable councils to defer the review of water services bylaws, under the Local Government Act 2002.
Read the Water Services Acts Repeal Act on the New Zealand Legislation website.
