Local Water Done Well
Last updated: 13 Mar, 2025 11:26pm
Our water services
why reform?
Q&A
have your say
Our Water Services
Council manages drinking water, wastewater, and stormwater services on behalf of Carterton District. [We also provide services for water race users.]
Drinking water
The water your family drinks from the tap has to be safe. Most New Zealanders get their water from Council supplies. This water comes from rivers and aquifers, and through treatment plants. The plants are designed to meet water standards, so homes and businesses enjoy safe water.
Wastewater
Millions of litres go to Wairarapa households every day. Because about 1% of that is human and other waste, it contains many bacteria and viruses that could be harmful to human health. This is then treated at a wastewater treatment plant, and sent to irrigate land, or discharged to sea.
Stormwater
The stormwater system is a network that drains the rain off of our roads, footpaths, and from our gutters, and diverts it into our streams, rivers and eventually out to sea. Unlike wastewater, which gets treated at a treatment plant, stormwater does not get treated. Everything that goes into the stormwater system will eventually end up at sea.
Why reform?
The Government is reviewing how to improve the regulation and supply arrangements of drinking water, wastewater and stormwater (three waters) to better support New Zealand’s health, safety and environment. Most three waters assets and services, but not all, are owned and delivered by local councils.
Our Council is in pretty good shape compared to many other councils. The government is inviting local councils to be part of this review, and co-design what this may look like in the future.
Recent history of reforms
2016 - Havelock North gastroentiritis outbreak
In 2016, the Havelock North water crisis raised concerns about water management in New Zealand and the high costs to communities to ensure we all have safe drinking water.
Havelock North’s community suffered an outbreak of gastroenteritis caused by contaminated drinking water. The crisis affected thousands of people in the Hawkes Bay region of New Zealand.
An estimated 5,500 people became ill with campylobacteriosis, with 45 people hospitalized.
The outbreak was linked to contaminated drinking water from two bores. The contamination was caused by heavy rainfall, drainage of sheep feces, and a contaminated stream
Some people were left permanently disabled, and an unknown number of residents continue to suffer health complications.
2017 - Reforms announced
In 2017, the Government began reviewing the regulation and supply arrangements of drinking water, wastewater and stormwater [three waters] to better support New Zealand’s health, safety and environment. Most three waters assets and services, but not all, are owned and delivered by local councils.
2020 - Three Waters Review
To be part of that conversation, we needed to sign a Memorandum of Understanding in 2020 outlining how local and central government will work together, which also entitled us to $1.84m of funding which we can put towards water supply, waste water, or storm water (but not towards projects which we have already budgeted for). Carterton District Council received $1.7million in Bettter Off funding after signing the MoU.
2021 - Taumata Arowai launches
Taumata Arowai became a Crown entity in March 2021 and took over from the Ministry of Health as the dedicated new drinking water regulator when the Water Services Act commenced on 15 November 2021. Taumata Arowai is the water services regulator for Aotearoa. We are committed to ensuring all communities have access to safe drinking water every day. We also have a role in relation to the environmental performance of wastewater and stormwater networks across Aotearoa New Zealand.
2023 - Amendments and change of Government
In April 2023, government annouced changes to the reforms.
The government refined a multi-regional (i.e. Lower North Island) organisations to manage water assets and debt from 4 to 10 water service entities.
These included:
- The establishment of 10, rather than four, new regionally owned and led public water entities to be established.
- Entities will be owned by local councils on behalf of the public, and entity borders to be based on existing regional areas.
- Each entity to be run by a professional board, with appointed members.
- Strategic oversight and direction to be provided by local representative groups with every local council in the country, as well as mana whenua, getting a seat at the table.
- The second tranche of $1.5 billion better off funding has been discontinued.
A change in Government in that year’s election inspired a change in policy. The reforms were reviewed and relaunched as Local Water Done Well.
2024 - Local Water Done Well
The new Coalition Government introduced Local Water Done Well to address water infrastructure challenges by allowing local councils to decide how to manage their water services, replacing the previous “Three Waters” reform which aimed to centralize water management.
In 2024, the government repealed the Three Waters legislation and introduced the Local Water Done Well framework, allowing councils to develop their own water service delivery plans while still maintaining local control over water assets and services.
Questions & Answers
What is Local Water Done Well?
Local Water Done Well is a proposal to establish a sustainable water services model that ensures affordability, transparency, and high-quality drinking, wastewater, and stormwater services.
Why is this change being considered?
New national regulations require stricter water quality, safety, and environmental standards. Councils must determine how to best manage water services while maintaining financial sustainability.
What has changed since Three Waters and Affordable Waters?
The government has moved away from large-scale centralisation, recognising that councils and communities should have more say in how their water services are managed. However, all water services must still meet high environmental and safety standards, which means councils need to find ways to structure services efficiently and cost-effectively.
How is Local Water Done Well different from Three Waters and the Affordable Waters policy?
The original Three Waters Reform proposed shifting all water services (drinking, wastewater, and stormwater) to four large entities across New Zealand. The Affordable Waters policy revised this approach by increasing the number of entities but maintaining central control. Local Water Done Well is a locally-led model where councils retain a greater level of control and oversight. Instead of a distant centralised entity, it is designed to reflect the needs of our communities while still meeting national regulations.
What happens if we do nothing?
If councils choose not to participate in Local Water Done Well or an alternative model, they will still be required to meet national water quality and infrastructure requirements. This could result in significant financial pressure on councils to maintain and upgrade water services independently.
Will this affect my rates?
Water services will be funded through direct charges rather than rates. Prices will be standardised over time.
Is this the same as Wellington Water?
No. The proposed model is more like Auckland’s water services approach, ensuring local accountability and cost management.
Can councils change their minds later?
While reversing a decision would be complex, councils will retain oversight to ensure services are delivered effectively and affordably.
What does Local Water Done Well mean for district councils?
Local Water Done Well introduces a new regulatory regime for water services delivery. There will be new rules for investment, borrowing and pricing and new options for how we deliver water services. This new environment requires councils to prepare a water services delivery plan by 3 September 2025 to demonstrate how water services delivery (drinking water, wastewater and stormwater services) will meet new water quality and infrastructure standards, support growth and urban development and be financially sustainable by 30 June 2028.
The Year 1 charges in this document do not match what is on my current rates bill. Why?
There are many ways that ratepayers and industrial users are currently being charged for water services. For the purposes of this consultation to compare options, we have pulled together the total revenue requirements and divided this by the number of connections for each option to reflect an indicative annual charge for an average consumer (domestic or industrial) receiving access to all water services [drinking water, wastewater and stormwater management] under a consistent set of assumptions.
Where do water races fit within Local Water Done Well if our races are part of the stormwater network?
The Local Government (Water Services) Bill, likely to become legislation by mid-2025, contemplates green water services infrastructure within the context of stormwater service. Green water services infrastructure means a natural, semi-natural or engineered area, feature or process that mimics natural areas, features, or processes that are planned or managed to provide water services. Further work will be done on stormwater services, including water races, within the preparation of the water services delivery plan in September 2025.
What assurances do we have that the financial modelling being used is fit for purpose?
The status quo and joint CCO options have been modelled from each council’s Long-Term Plans. The South Wairarapa model is based on a draft unaudited Long-Term Plan. All capital works, including those from years 9 to 20, are based on Council Infrastructure Strategies and underlying asset management plans. Additional capital works have been included for Carterton District Council. Both options assume additional regulatory charges will take effect from 1 July 2025 for the two new regulators being Water Services Agency – Taumata Arowai and the Commerce Commission. These additional regulatory costs will impact future water services charges regardless of which option council decides.
Why have you shown uninflated numbers in your modelling?
The inflation rate chosen and applied for twenty years will significantly impact the projected average connection charges and is a significant unknown today. It was determined that a better approach was to use uninflated numbers consistently across the modelling to enable a comparison of options. For estimates of indicative charges including assumed inflationary impacts, please contact council.
How long is the consultation period?
Public consultation runs from 7 March to 22 April 2025.
Where can residents provide feedback?
Online submissions, public meetings, and written forms available at council offices.
What happens after consultation?
Consultation closes on 22 April. Councils will review feedback, deliberate on the preferred model, and make formal decisions following hearings.
What happens next?
Your council will decide on the future of water services delivery after the consultation process is completed. Once the decision is made, the preferred option will be incorporated into the Water Services Delivery Plan as the proposed delivery model. The WSDP must be submitted to the Secretary for Local Government by 3 September 2025, and if accepted, the new entity will be established. In our modelling, we have assumed a start date for any new entity of 1 July 2026. An Establishment Plan has not yet been developed, as this must come after the consultation process and decision on the preferred option.
Still have questions? Submit one here.