Waikato Waters

The status quo was not an option for councils to choose under central Government’s requirements. Even with an in-house model (keeping waters as a stand-alone council deliverable), the new requirements under Local Water Done Well meant that would be different.

South Waikato District Council approved the Water Services Delivery Plan in accordance with the requirements of the Local Government (Water Services Preliminary Arrangements) Act 2024, following the approval of Waikato Water Done Well as the water services delivery model (for delivery of drinking water and wastewater services) on 25 June, 2025.

Waikato Water Done Well, a Council-Controlled Organisation (CCO involving seven local councils), was identified as the South Waikato District Council’s preferred option on 26 March 2025.

Consultation with the community was conducted between 14 April to 12 May 2025. There were 54 submissions in total – 53 online and one paper submission. Of these, seven were in favour of Council's preferred option and 46 opposed, with one submission unclear.

When considering its decision, Council looked at the impact of keeping water services in-house rather than joining a jointly owned organisation with other councils. An in-house model would have meant higher infrastructure costs, more limited borrowing and funding options, difficulty spreading costs across generations, and greater challenges attracting skilled staff.

Jointly owned Council-Controlled Organisation (CCO): This option met requirements for sustainability and was the most affordable for ratepayers in the long run. You can find more information on why this was the preferred model in our consultation document.

The current model: Council has been providing your water and wastewater services since 1989. However, continuing with this model will bring about challenges – financial and otherwise.

A single council-owned water organisation: This would have allowed Council to retain full control of water delivery services but we would not have the increased borrowing capacity or workforce sustainability that we get with Waikato Water Done Well.

A trust: This was initially considered as an option. However, it would add additional costs and would not attract the favourable borrowing terms. We didn’t investigate this option any further.

There will be no noticeable change to your day-to-day water delivery services. Water will still flow from your tap, and your toilet will still flush! While the CCO is being set up, water service payment will continue as it is. From 1 July 2026, you will receive your water and wastewater bills directly from the CCO instead of the Council.

No. These charges will be taken off your rates.

Councils will retain their existing relationships with iwi and hapū and existing partnership arrangements within councils will be respected and maintained.

This will not affect the rate changes as set out in the Long Term Plan.

‘Waikato Water Done Well’ is the model chosen by Council to deliver drinking water and wastewater services for the district in the future. It is a proposed jointly owned company (called a “CCO”) that has participating councils as shareholders. It involves South Waikato, Matamata-Piako, Hauraki, Ōtorohanga, Waitomo, Waipā and Taupō District Councils. An independent Board is appointed by the shareholding councils. It is a legal requirement that the Board is independent. The councils each make up a shareholders’ forum that advises the Board.

• Affordability: It is the most affordable option, with lower rate increases than other models.
• Efficiencies of scale: Consolidating water services across multiple councils helps reduce costs and improve service delivery.
• Improved environmental outcomes: The CCO can better meet climate change goals and regulatory requirements.

• Hauraki District
• Matamata-Piako District
• Ōtorohanga District
• South Waikato District
• Waipā District
• Waitomo District
• Taupō District Council

An interim Chief Executive was appointed in January 2026 to support the organisation through its establishment phase.

Currently, stormwater services are not part of the LWDW policy. While the exact future for stormwater services is not yet determined, one possibility is that the Waikato Water Done Well CCO could also manage stormwater services in the future, depending on what is best for the community.

Under new requirements expected of councils for water services, costs are going to go up. It does not matter whether this is a standalone council business unit or a CCO. Under LWDW, water and wastewater services costs (construction, maintenance, treatment, delivery) need to be ring-fenced and on charged directly to customers. This is a requirement of the Government’s Local Water Done Well approach. Each council will feel the impact of these increased costs differently.

Legislation requires us to consider affordability as one of the things that prove the financial sustainability of the CCO. There’s no official definition of affordable water costs in New Zealand, but international guidelines suggest affordability can become a challenge when the cost of drinking water and wastewater services exceeds 2% of a household’s income.

Affordability in the WWDW model is achieved through creating efficiencies of scale (which is the cost advantages a company gains by increasing its production scale, leading to lower average costs per unit as output rises).

Currently, the shareholding councils are each contributing to a portion of the initial establishment costs, but the CCO will reimburse the councils for this cost once it is operational through its financing agreement through the Local Government Funding Agency (including any interest costs that may have been incurred).

The establishment cost will not be added to property rates in any of the member Councils.

Currently the costs to establish a new legal entity are $2m and shared across the seven councils. However, as shareholders in the CCO they can pass much of this cost onto the CCO (the CCO will have a debt to each council). The CCO will repay the councils once it is generating its own revenue.

The new model will allow the CCO to borrow more money to fund necessary infrastructure projects, such as upgrading aging pipes and treatment plants. The CCO has a higher borrowing capacity than the Council currently does, which means there will be more funding available for infrastructure improvements.