Future water services delivery system
The Local Government (Water Services) Bill covers the enduring settings for New Zealand’s drinking water, wastewater and stormwater services.
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.
When enacted the Bill will be the central piece of legislation for New Zealand’s water services system. It builds on the foundations already in place through the Local Government (Water Services Preliminary Arrangements) Act 2024, including the development of Water Services Delivery Plans by councils.
Sitting alongside the new models that will be available to councils under the Bill, in August LGFA confirmed it will provide financing to support water council-controlled organisations (CCOs) that are financially supported by their parent council or councils.
On this page:
- About the Local Government (Water Services) Bill
- Factsheets on key aspects of the Bill
- Financing for councils via Local Government Funding Agency
- Future regulatory landscape for drinking water, wastewater and stormwater services and networks
- Further information
About the Local Government (Water Services) Bill
The Bill 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.
The Bill was introduced to Parliament in December 2024 and is expected to be enacted in mid-2025.
Read the overview of the Bill: Local Government (Water Services) Bill overview (PDF, 336KB)
Factsheets on key aspects of the Bill
The Department has developed a range of factsheets to provide key information about the Bill.
- Water service delivery arrangements (PDF, 260KB)
- Water service delivery models: Guidance for local authorities December 2024 (PDF, 547KB)
- Planning and accountability for local government water services (PDF, 280KB)
- Economic regulation and consumer protection (PDF, 273KB)
- Future arrangements for stormwater (PDF, 200KB)
- Drinking water quality regulation (PDF, 240KB)
- Wastewater and stormwater ennvironmental performance standards (PDF, 306KB)
- Infrastructure design solutions (PDF, 199KB)
- National Engineering Design Standards (PDF, 200KB)
Financing for councils via Local Government Funding Agency
Sitting alongside the new models that will be available to councils under the Bill, 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 the LGFA should they choose to keep water services ‘in house’.
LGFA has also confirmed it can immediately begin lending to high growth councils with leverage up 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:
- LGFA NZX Announcement (8 August 2024): Update on Local Water Done Well and Additional Financing for High Growth Councils (Local Government Funding Agency website)
- LGFA financing to local government for water services – December 2024 update (Local Government Funding Agency website) (PDF, 350KB)
- LGFA financing to local government for water services – April 2025 update (Local Government Funding Agency website)
Future regulatory landscape for drinking water, wastewater and stormwater services and networks
The Bill proposes 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)
Further information
Read the Bill in full on the New Zealand Legislation website.
