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. Continuing to deliver services in-house as we do now was an option considered by Council. However, the changes required 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) made this option not viable for Rangitīkei.

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).

Ring-fencing, in the context of Local Water Done Well, means that revenue from water services (collected through rates or charges) must be kept separate from other council revenue and used specifically for the provision and investment in those water services.

Ring-fencing ensures that water services are financially sustainable, meaning the revenue generated covers the costs of providing those services and allows for necessary investments.

Water service providers need to maintain separate accounts to track revenue generated from water services, and related expenses.

Revenue from water services must be used for the provision of those services, including capital and operational expenditure, as well as for ensuring the long-term sustainability of the water service.

The Commerce Commission will monitor and enforce compliance with ring-fencing requirements and will have the power to impose penalties for non-compliance.

Water services delivery plans are a way for councils to demonstrate their commitment to deliver water services that meet regulatory requirements, support growth and urban development, and that are financially sustainanable.

All city and district councils in Aotearoa New Zealand must provide a water services delivery plan to Government by 3 September 2025.

It will cover information across three key areas: (a) financial and asset information, (b) investment required, and (c) service delivery arrangements for all water services (drinking water, wastewater and stormwater). 

The plan will include an assessment of the council’s water infrastructure, how much investment is needed, and how council will finance and deliver it through their preferred water service delivery model. The preferred model for Rangitīkei District Council is the establishment of a council-controlled organisation with as many councils in the Manawatū-Whanganui region as possible. At this stage, this council-controlled organisation will include Palmerston North City Council and Horowhenua District Council, with Ruapehu District Council and Whanganui District Council yet to decide if they will join.

The other councils in the Manawatū-Whanganui region are moving forward with alternative models.

Councils have 12 months from the date of the enactment of the Act to prepare and submit their Plans. Plans must be submitted to the Secretary for Local Government by 3 September 2025, unless an extension is granted.

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, Palmerston North and Horowhenua councils will still own their water assets on behalf of their communities. The councils will become shareholders of the Water Services Council-Controlled Organisation (WS-CCO).

A CCO is an organisation that is ultimately accountable to Council but is run independently, with independent management and governance. In this instance, you will pay water services charges through the WS-CCO once it is established, not through council as part of your rates.

The reality is that bigger centres inevitably subsidise smaller towns and villages due to scale. For example, under our current ‘in-house’ model, residents living in the main towns subsidise those in the smaller villages who receive water services. This is because there are more houses in the main centres, and therefore more people paying for water. 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 all the districts'/city where all users will pay the same regardless of where they live. Price harmonisation will be discussed as part of the establishment of the WS-CCO.

No. Water assets will remain publicly owned. The law prevents councils from selling water assets without extensive legislative and community approval.

Shareholding councils will appoint representatives to oversee the Water Services Council-Controlled Organisation once it is established. The day-to-day management will be handled by this specialist board, and the oganisation’s CEO.

The organisation is likely to hold public consultations from time to time where there are issues or decisions of notablic interest, and the councils will remain strategically involved as shareholders.

While the council will no longer directly manage day-to-day operations, it will be involved in governance and oversight to ensure the organisation meets community expectations. The organisation will be accountable to the shareholding councils.

Instead of being part of council rates, water bills will become a separate charge. These will look similar to your power or internet bill and paid directly to the new water organisation.

An economic regulator (Commerce Commission) will monitor pricing to ensure affordability and fairness.

Different councils have different relationships with local Iwi/hapū. Currently, each council has been working directly with their mana whenua on its progress under Local Water Done Well. The Government has imposed very tight timeframes and so in many cases, mana whenua engagement has not been as fulsome as desired.

Regardless of how water services are delivered or who delivers them, legislation requires that Council uphold statutory obligations of Te Waiū o Te Ika and Ngāti Apa Settlement 2010.