Local Water Done Well legislation
Local Water Done Well has been implemented in three stages, each with its own 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
Enduring settings for New Zealand’s water services system have been established through the Local Government (Water Services) Act 2025 and the associated Local Government (Water Services) (Repeals and Amendments) Act 2025.
- The Local Government (Water Services) Act 2025 is a standalone Act that establishes the enduring settings for the new water services delivery system.
- The Local Government (Water Services) (Repeals and Amendments) Act 2025 amends existing legislation, including the Commerce Act 1986 to establish an economic regulation regime for water services, the Water Services Act, and the Local Government Act.
Initially introduced to Parliament as a single bill, the legislation was divided by the committee of the whole House.
Read the Overview of the Local Government (Water Services) Act and Local Government (Water Services) (Repeals and Amendments) Act (PDF, 303KB)
Find factsheets on key aspects of both Acts: Future water services delivery system
The Local Government (Water Services) Act and Local Government (Water Services) (Repeals and Amendments) Act
The objectives of the two pieces of legislation areto set out a framework for local government to provide water services in a flexible, cost-effective, financially sustainable, and accountable manner. The Acts reflect key policy decisions announced by the Government in August 2024.
The Acts set 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.
They provide 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. Find out more about the enduring economic regulation regime on the Ministry of Business, Innovation and Employment website.
- 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 set of national standards for wastewater and stormwater environmental performance.
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 Act 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. The Act also enables some councils and council-controlled organisations to be subject to an early form of information disclosure by the Commerce Commission, prior to the enduring economic regulation regime. Find out more about foundational information disclosure on the Commerce Commission’s website.
- 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 development of a charter and the appointment of a Crown monitor, for the interim regulation of Watercare. View the Charter on the New Zealand Gazette website (6 March 2025).
- 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 by the previous Government 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.
