Legislation and process

Local Water Done Well is being implemented through a three-stage legislation process.

Updated: 8 May 2024

1.      Repeal of previous water services legislation

In February 2024 the Government introduced and passed legislation to repeal all legislation relating to water services entities.

Read the Minister’s press release on the Beehive website.

The Water Services Acts Repeal Act repealed the Water Services Entities Act 2022, Water Services Legislation Act 2023 and the Water Services Economic Efficiency and Consumer Protection Act 2023.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 Legislation website.

2.      Local Government Water Services (Transitional Provisions) Bill: Establish framework and transitional arrangements for new water services system

In April 2024 the Government announced the first set of policies that will establish the Local Water Done Well framework and the transitional arrangements for the new water services system.

Read the Minister’s press release on the Beehive website (5 April 2024)

Read information provided to councils [PDF, 359KB]

The Government intends to introduce and pass legislation by mid-2024 that will establish the framework and transitional arrangements for the new water services system.

This includes:

• Providing a framework for councils to self-determine future service delivery arrangements via a water services delivery plan (to be submitted within 12 months)
• Steps towards future economic regulation
• Streamlining requirements for establishing council-controlled organisations under the Local Government Act to enable councils to start shifting the delivery of water services into more financially sustainable configurations, should they wish to do so
• Provisions that enable a new financially sustainable model for Watercare.

In May 2024 the Government announced its plan to provide a financially sustainable model for Watercare under Local Water Done Well. The new model means Auckland Council retains ownership and control over Watercare, but Watercare is provided with the necessary financial independence to access increased borrowing for investment in water services.

Read the Minister’s press release on the Beehive website (5 May 2024)

3.      Local Government Water Services Bill: Establish enduring settings and begin transition

The Government intends to introduce further legislation in December 2024 that will establish the enduring settings for the new system.

This includes:

• Setting long-term requirements for financial sustainability
• Providing for a range of structural and financing tools, including a new class of financially independent council controlled organisations
• Considering the empowering legislation for Taumata Arowai to ensure the regulatory regime is efficient, effective, and fit-for-purpose, and standards are proportionate for different types of drinking water suppliers
• Providing for a complete economic regulation regime to ensure consumers pay efficient cost-reflective prices for water services that are delivered to an acceptable quality and that water services providers are investing sufficiently in their infrastructure
• Establishing regulatory backstop powers, to be used when required to ensure effective delivery of financially sustainable or safe water services.