Water Frequently Asked Questions

Successive governments have recognised the challenges maintaining and future-proofing water services across Aotearoa New Zealand and have introduced models to support councils. These models have included ‘Three Waters’ and ‘Affordable Water Reforms.’ Local Water Done Well is the current Government’s water services initiative. It was introduced shortly after their election in October 2023.

To put it simply, while Three Waters and Affordable Water Reforms took a centralised view of the way water services are managed, Local Water Done Well takes a more localised view – with central government oversight.

The Government has introduced legislation outlining how water services must operate and be monitored in future. We can continue to deliver services in-house as we do now, but we have to make changes to how we deliver these services (including ring-fencing our water operations, finances, and assets from the rest of our services and demonstrating compliance with increased regulations and standards).

'Enhanced status-quo' (i.e. how we deliver water services now, but with those additional hoops to jump through considered), is included as Model 2 in our consultation document.

Local Water Done Well is about addressing water affordability, quality, safety, and access to predominantly urban populations. There are some rural properties that could be impacted by the proposals if they have connections to our water services (i.e. if you currently pay for a drinking water, wastewater, and/or stormwater connection on your Rangitīkei District Council rates bill)

River catchments will still be the responsibility of the regional council (in our case, Horizons).

No alternative to Local Water Done Well has been put forward by this Government.

However, it is important to note that reforming the way water services are delivered to Kiwis is not a new thing. Successive governments have recognised the challenges maintaining and future-proofing water services across Aotearoa New Zealand and have introduced models to support councils. These models have included ‘Three Waters’ and ‘Affordable Water Reforms.’ Local Water Done Well is the current Government’s water services initiative. It was introduced shortly after their election in October 2023.

Currently, only properties that have working water connections (i.e. are connected to Council operated drinking water, wastewater, and stormwater services) pay towards these services.

However, all ratepayers contribute towards public good rates for drinking water, stormwater and wastewater. These public good rates cover communal use by the community such as public toilets, community halls, and drainage at public places such as parks and playing fields. Currently, you can see this 'public good' water charge as a separate line item on your Rangitīkei District Council rates bill.

Under Local Water Done Well, there will be an expectation that those who do not have working water service connections will still financially contribute to these 'public good' community uses for water. What that contribution will look like is still to be determined.

Under Council's preferred model for Local Water Done Well, Rangitīkei, Whanganui and Ruapehu councils will still own their water assets on behalf of their communities. The councils will become shareholders of a Water Services Council-Controlled Organisation (WS-CCO).

We do understand that rates affordability is a concern for many residents. Council’s preferred model for Local Water Done Well won't relieve rates pressure straight away for residents, but in the medium to long-term, it will lead to lower water bills than what is forecast should these services remain in house.

It's anticipated that there would be higher set up costs of an organisation of this type, however these will be shared across the three councils. So it's forecast to be cheaper in the long run for ratepayers.

The community will not be directly involved in decision making, but through RDC's role as a shareholder, Council would be tasked with holding the CCO accountable for decisions. It is likely that community consultations will be held from time to time.

Reports of faults and requests for service would be made to the new CCO, and not Council. However, we anticipate there may be a transition period while people get used to the new delivery arrangements.

The main benefit of this model is that the organisation may be able to qualify for increased borrowing through the Local Government Funding Authority to pay for necessary upgrades needed in the future. It means that more money can be borrowed, but over a longer period of time to ensure that future generations are contributing to the upgrade and renewal work that will be done.

Should we go with Model 2, Council is unlikely to be able to access such funding.

The reality is that bigger centres inevitably subsidise smaller towns and villages due to scale, and under our current model residents living in the main towns subsidise those in the smaller villages who receive water services. Where there are less connections, it makes things more expensive.

Should price harmonisation be adopted under a future CCO, it will see standardised pricing across the three districts where all users will pay the same regardless of where they live.

Councils are required to submit a Water Services Delivery Plan to the government by September, and as part of that plan we're required to have consulted on what our preference is. Community feedback will be considered like all other consultations that we do, but the ultimate decision on what our water services delivery looks like in the future sits with Council, and the government will have the final say.

We haven't discussed this idea yet, although it could be discussed later down the track. Our focus now is working out what the model will look like rather than operational specifics.