The Department of Internal Affairs

Department of Internal Affairs | Te Tari Taiwhenua

Building a safe, prosperous and respected nation



 

Water services delivery system

Enduring settings for New Zealand’s drinking water, wastewater and stormwater services are set out in the Local Government (Water Services) Act 2025 and the associated Local Government (Water Services) (Repeals and Amendments) Act.

The Acts set out details relating to the water services delivery system, the economic regulation and consumer protection regime, and changes to the water quality regulatory framework.

The Acts are the central legislation for New Zealand’s water services system. They build on the foundations already in place through the Local Government (Water Services Preliminary Arrangements) Act 2024, including the requirement for councils to develop water services delivery plans.

On this page:

Factsheets on key aspects of the Acts

(Updated September 2025)

The Department has developed a range of factsheets to provide key information about this legislation. 

Read the updated Overview of the Local Government (Water Services) Act and Local Government (Water Services) (Repeals and Amendments) Act (PDF, 294KB)

The following fact sheets refer to the legislation as enacted.

Financing for councils via Local Government Funding Agency

Sitting alongside the new models available to councils under the Act, in August 2024 LGFA confirmed it will provide financing to support water council-controlled organisations (CCOs) that are financially supported by their parent council or councils.

Councils will also continue to have the ability to borrow through LGFA should they choose to keep water services ‘in house’.

LGFA has also confirmed it can lend to high growth councils up to a level equivalent to 350 per cent of their total revenue. This is a significant increase in the standard leverage available to councils at 280 per cent. 

Find out more:

Future regulatory landscape for drinking water, wastewater and stormwater services and networks

The Commerce Commission is the new economic regulator for water services and is responsible for the consumer protection regime for water service suppliers.

View the Commission’s factsheet on Economic regulation and consumer protection for water services (PDF, 122KB - Commerce Commission website)

The Acts make changes to the way that drinking water, wastewater and stormwater services and networks are regulated.

View an overview of roles and responsibilities under the new regulatory regime (PDF, 188KB)

Small wastewater plant cost efficiency case studies

The Department of Internal Affairs commissioned a study through National Infrastructure Funding and Financing (NIFF) to provide examples of the impact of the proposed wastewater environmental performance standards for discharges to water from small wastewater treatment plants (the small plant standard).

Although the standards are still being developed, the Department asked NIFF to undertake an indicative assessment of how the small plant standard could improve cost and time efficiencies in the design, consenting, construction, and operation of small wastewater treatment plants (those serving populations of less than 1000).

A key finding from this study is that the small plant standard may result in cost savings of 40-60 percent in the design and consenting phases for small wastewater treatment plants.

The report provides councils with insights to help inform wastewater infrastructure investment planning including guidance on what cost savings may be possible to achieve for existing small wastewater treatment plants and enable them to reflect this into their own small wastewater plant portfolios.

The report is available here: 

Wastewater standards cost efficiency case studies – Small Treatment Plants (PDF, 4.9MB)

For more information on the proposed small plant standard and the wider wastewater standards see: Help shape New Zealand’s wastewater future - Taumata Arowai - Citizen Space