Local Water Done Well
We’ve reached the next step in the Local Water Done Well journey – now it’s your turn to share your thoughts with community consultation running from Monday 24 March to Thursday 24 April.
Our current water services model - covering drinking water, wastewater, and stormwater - does not meet the Government’s new financial sustainability rules. The reality is, staying as we are isn’t an option. While change is necessary, we have the opportunity to shape how it happens - and that’s why your feedback is so important.
Councils across the country must review how they deliver water services and submit a Water Services Delivery Plan by 3 September 2025. This is part of the Government’s Local Water Done Well programme, ensuring water services remain financially sustainable, high-quality, and well-managed for the future.
We’re proud of the mahi (work) we’ve done to provide safe drinking water, reliable wastewater, and effective stormwater management. But as our community grows and new Government rules come into effect, we must change how we manage and fund water services.
Why change is necessary
Staying with the current model is not an option - we must transition to a more financially viable structure to ensure we can keep delivering water services at the lowest possible cost, while maintaining local decision-making and public ownership.
- Western Bay’s water services are well-managed today, but our current model does not meet the Government’s new financial sustainability rules. The reality is, even if we wanted to, we don’t have the financial capacity to continue operating as we are.
- To secure safe, high-quality, and affordable water services for our communities, we must adopt a financially sustainable and legally compliant delivery model.
The challenges we face
- New Government rules – Councils must prove they can sustainably fund long-term water services.
- Infrastructure investment needed – Upgrading aging pipes, treatment plants, and stormwater systems will cost significantly more in the coming years.
- Population growth – More people means greater demand for water, wastewater, and stormwater services.
- Rising costs – Maintaining reliable services under stricter water quality and environmental standards means higher costs.
This isn’t a decision about whether change happens - it’s about making sure it happens in a way that works best for our community.
Our options:
After reviewing all possible alternative options to our current model, we've identified two main choices:
| Option 1 | Single Council Water Services Organisation | A separate Council Controlled Organisation is created to manage water services. This provides some financial benefits, including increased borrowing capacity. However, this option does not address the benefits that come from being part of a larger specialist organisation or sufficiently meet long-term funding, affordability and investment needs. |
| Option 2 | Multi Council Water Services Organisation (preferred option) | A shared entity with potential partners such as Tauranga City Council and/or other councils. This option enhances financial sustainability while maintaining local oversight. The benefit of this over ten years could be as much as $4000-$5000 per water connection. Efficiencies would build over time, likely generating further savings for our community. |
Regardless of the option, water charges will rise - but a multi council model would keep costs lower than going alone.
How do the options compare?
To plan for the future of our water services, we've assessed our infrastructure and how well we can meet the new government regulations.
We've listened to our communities and know that cost, control, ownership, and quality of our water services matter most. These priorities have guided our decision-making and form the basis for comparing each option.
In simple terms:
- Under the current model, average household water charges are projected to exceed $4300 per connection annually over the next 10 years.
- With a multi-council model, this drops to $3000 per connection—a 31% reduction.
- Over 10 years, this could save each household approximately $4000–$5000 compared to staying on our own.
Background
Local Water Done Well is the Coalition Government’s plan for managing water services and infrastructure following the repeal of the Water Services Reform legislation (Three Waters) in February 2024. The new legislation aims to improve water quality, secure long-term investment in water infrastructure, and keep control of water services and assets at the local level.
As part of this process, all councils must submit Water Services Delivery Plans by 3 September 2025, outlining future water service arrangements and an implementation plan.
