The Department of Internal Affairs

Department of Internal Affairs | Te Tari Taiwhenua

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Information and guidance for councils

A key feature of Local Water Done Well is providing flexibility for councils to determine how their water services will be delivered.

This page provides information, templates and guidance for councils, to support their planning and implementation of water services delivery arrangements under Local Water Done Well.

On this page:

Guidance to support consideration of new water services delivery models

Water Services Delivery Models: Guidance for local authorities

This guidance provides further detail on the range of service delivery models available to councils, including by providing for new water organisations that councils (and consumer trusts) can own.

Find out more:

Templates and guidance for establishing new water organisations

This page provides a toolkit of templates and guidance materials to support councils that are considering the establishment of a new water organisation to delivery water services (such as a single or multi-council owned council-controlled organisation or consumer trust).

It includes summary information to support decision making and model templates for the key documentation involved.

This includes multi-council commitment agreements, shareholder agreements, constitution, transfer agreements, council/CCO interface agreements, and other standardised artefacts relating to CCO or consumer trust establishment.

The material has been updated to reflect the contents of the Local Government (Water Services) Act 2025 as enacted in December 2025.   

Find out more: Outline of templates and guidance for establishing new water organisations (Updated December 2025) (PDF, 305KB)

Share allocation options for multi-council owned water council-controlled organisations

Councils establishing multi-council owned water organisations will need to agree how to allocate the number of shares in the water organisation between the shareholder councils. This guidance sets out options for determining shareholding allocation for multi-council owned water organisations.

Find out more: Share allocation options for water organisations (Updated December 2025) (PDF, 325KB)

Price differentiation protections for multi-council owned water council-controlled organisations

This guidance sets out some principles and example clauses that shareholding councils in a multi-council water CCO can consider using and adapting for use in transfer agreements, a constitution, and shareholding agreements.

The material is designed to provide an additional layer of protection (beyond legislative provisions) for shareholding councils to ensure the water organisation prioritises cost efficiency in serving water users, maintains a charging regime that is cost-based, and does not introduce harmonisation of charges without the relevant approvals.

Find out more: Price differentiation protections (Updated December 2025) (PDF, 160KB)

 

Guidance and information to support financial considerations

Financing water services delivery through establishing new water council-controlled organisations

This guidance provides advice on financing options for councils that are considering adopting the water organisation model for water services delivery.

It outlines criteria for accessing higher borrowing from LGFA and the benefits of this for financially sustainable water services delivery, and includes worked examples showing the impact of utilising the additional debt headroom made available to water organisations (that are council-controlled organisations) by LGFA.

Find out more: Financing water services delivery through establishing new water organisations (Updated December 2025) (PDF, 672KB)

Pricing and debt considerations for multi-council owned water organisations

Councils investigating multi-council owned water organisations will have different investment requirements, borrowing requirements, and costs of service. This drives regional differences in revenues, and charges required, across councils if revenues are set to reflect the costs of service.

This document provides guidance on these pricing and debt considerations for councils that are investigating establishing a multi-council owned water organisation. It includes hypothetical, worked examples of pricing and debt structuring options for councils.

Find out more: Pricing and debt considerations for multi-council owned water organisations (Updated December 2025) (PDF, 665KB)

Ensuring compliance with financial principles for water services providers

This guidance provides suggested approaches for how water service providers can ensure their financial and operating policies and procedures enable adherence to the financial principles for water service providers as set out in the Local Government (Water Services) Act 2025.

It also outlines the new legislative requirements relating to water services financial statements that apply under that Act – and on a transitional basis under the Local Government Act 2002 (LGA02).

Find out more: Ensuring compliance with financial principles for water service providers (Updated December 2025) (PDF, 831KB)

Transforming water services into utility businesses

Under Local Water Done Well, water service providers will have to operate more like independent utility businesses, much like telecommunications or electricity utilities. They will be structured and operated differently, and they will be directly accountable to customers, regulators and shareholders (where relevant).

This document provides information and insights about ‘utility thinking’, to help inform and guide councils’ consideration of future water services delivery arrangements.

Find out more: Transforming water services into utility businesses (Castalia, October 2024) (PDF, 348KB)

Implementing Local Water Done Well

Planning for future water services delivery (2025-2028)

This document provides a high-level roadmap for councils’ planning and delivery of future water services arrangements under Local Water Done Well.

It is indicative only and has been prepared to support councils as they implement their Water Services Delivery Plans. It includes key milestones and an indication of key workstreams for councils, which may be required to achieve councils’ delivery of financially sustainable water services to their communities from 1 July 2028.

Find out more: Planning for future water services delivery (2025-2028) (PDF, 126KB)

Local Water Done Well implementation roadmap

This document provides an overview of key activities and milestones for the implementation of Local Water Done Well. It outlines the key steps in the overall Local Water Done Well programme to help councils and other stakeholders understand the timing of the programme.

Find out more: Local Water Done Well implementation roadmap - Updated September 2025 (PDF, 151KB)

Planning, reporting, and accountability for water service providers

These two documents provide information about the planning, reporting, and accountability framework that applies to councils or water organisations as water service providers under the Local Government (Water Services) Act 2025.

The first document informs council water service providers about the requirements that apply to them, including:

  • The planning and reporting cycle that relates to councils’ roles and responsibilities as water service providers under the Act.
  • The purpose, content, and processes associated with each of the key planning and reporting documents – water services strategies, water services annual budgets, and water services annual reports.
  • Intersections with related areas of the Local Government Act 2002, including council significance and engagement policies.
  • Timeframes and transitional provisions – including the timing of the first water services strategy and water services annual report.

Find out more: Guidance - Planning, reporting, and accountability for council water service providers (PDF, 667KB)

The second document informs water service providers that are water organisations – and their shareholders – about the requirements that applies to them, and the key features of the new framework. In particular, it explains: 

  • How the accountability framework in the Act is designed and intended to operate for water organisations and shareholders.

  • The planning, reporting, and performance cycle that underpins the accountability framework, and the roles and responsibilities of water organisations and shareholders.

  • The purpose, content, and processes associated with each of the key planning and reporting documents for water organisations, and related matters – including information on the statement of expectations, water services strategy, and water services annual report.

  • Intersections with related areas of the Local Government Act 2002 that will be relevant to council shareholders.

  • Timeframes and transitional provisions – including the timing of the first water services strategy and water services annual report.

Find out more: Planning, reporting, and accountability for water organisations and thier shareholders (PDF, 908KB)

Contact us

For more information or if you have any questions, please contact waterservices@dia.govt.nz