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Local Water Done Well

Stratford's future water services model

Stratford District Council (Council) has chosen to retain water services in-house through a dedicated Stratford Waters Internal Business Unit (SWIBU). This model keeps ownership, governance, and decision-making with Council while ensuring compliance with future requirements.

The SWIBU will operate under much stricter regulations imposed by the Commerce Commission and the Water Services Authority – Taumata Arowai.

Most of these are brand new requirements that Council is currently working behind the scenes to understand and put steps in to meet so that the SWIBU can be set up for success by 1 July 2027.

More information on how Council decided that the SWIBU would best suit the community’s needs can be found on our Decision Report for the Extraordinary Meeting held in August 2025.

What is Local Water Done Well?

Local Water Done Well is the Government's water services reform programme, introduced in 2024 to replace the previous Three Waters Reform programme.

The reforms are designed to ensure drinking water, wastewater and stormwater services remain safe, reliable, financially sustainable and compliant with regulatory requirements, while maintaining local ownership and accountability.

Under the reforms, all councils were required to assess future water service delivery options and submit a Water Services Delivery Plan demonstrating how they would meet future regulatory, infrastructure and financial sustainability requirements.

The Ministry of Cities, Environment, Regions, and Transport oversees Council’s progress against the Water Services Delivery Plan that was approved by Council.

Read the approved Water Services Delivery Plan

What does this mean for you?

For most Stratford residents, water services will continue to operate as they do today.

  • Council will continue to own local water infrastructure on behalf of our ratepayers.
  • Drinking water, wastewater and stormwater services will continue to be delivered for the Stratford district.
  • Decisions about local water services will continue to be made locally.
  • Council will continue working with neighbouring councils where collaboration provides benefits for Stratford residents and ratepayers.

  • A dedicated Stratford Waters Internal Business Unit (SWIBU) will be established to manage water, wastewater and stormwater services.
  • The SWIBU will develop its own Water Services Strategy instead of being included in Council’s Long Term Plan like other activities.
  • Water services will operate under a new national regulatory framework designed to improve transparency, accountability and long-term financial sustainability.
  • The Water Services Authority - Taumata Arowai will:
    • oversee Council’s performance against water quality and environmental performance requirements
    • develop a set of environmental performance standards that the SWIBU must meet
    • develop a new set of engineering standards to replaceNZS 4404.
  • The Commerce Commission will:
    • develop a series of information disclosure requirements, setting how the SWIBU must report on a range of asset management and financial matters
    • set revenue thresholds, defining minimum and/or maximum charges that the SWIBU can set to ensure it invests enough money in waters infrastructure
    • enforce financial separation and ring-fencing of any revenue collected for waters services to ensure it is invested back into waters
    • monitor the SWIBU against financial sustainability requirements.
  • Council will be required to meet new planning, reporting and performance requirements under theLocal Government (Water Services) Act 2025 and the Water Services Information Disclosure Determination 2026.

Like all councils across New Zealand, Stratford faces ongoing investment requirements to maintain and improve water infrastructure, meet drinking water standards and comply with future regulations.

Future costs will be considered through Council's long-term planning and budgeting processes.

Local Water Done Well aims to ensure these services remain financially sustainable over the long term.

Council’s rollout of the universal water metering project will change the rating methodology from the currently used targeted rate to a volumetric rate, meaning:

  • customers will only be charged for what they use
  • customers will have much better visibility on their water usage and trends
  • both Council and customers will be able to identify leaks better
  • landlords will be able to charge tenants for water usage subject to the requirements of the Residential Tenancies Act 1986.

This will be staged and rolled out over time, with a decision on water charges still to be made by Council. Community consultation will be carried out prior to any charges coming into effect.

  • No action is required from ratepayers and customers at this stage but keep an eye out for future opportunities to have a say on the delivery of water services when we consult on the 2027 – 2037 Water Services Strategy.
  • Council is implementing the approved Water Services Delivery Plan and establishing SWIBU ahead of 1 July 2027.
  • Updates will continue to be provided on this page and through our communications channels as the establishment progresses.

Community feedback

Council held public consultation from 30 April 2025 – 30 May 2025, where 185 submissions were made. Approximately 92% of submitters supported the SWIBU.

Option Submissions
In-house delivery model (SWIBU)
170
Regional Water Services CCO 12
No preference stated 3

More information on the consultation process can be found on YourSay.Stratford.govt.nz or in our Decision Report for the Hearings held in June 2025.

Timeline

Why Council chose the in-house model

Following consideration of community feedback, financial information, regulatory requirements and future infrastructure needs, Council unanimously supported an in-house delivery model.

Next Steps

Council is implementing SWIBU and progressing future water service improvements.

Documents and useful links

Council Decisions and Reports:

Local Water Done Well Consultation Document

Water Services Delivery Plan

Assessment of Drinking Water Services

Water Services Committee Terms of Reference

Council’s Information Disclosures

Ministry of Cities, Environment, Regions and Transport

Local Government (Water Services) Act 2025

Water Services Information Disclosure Determination 2026

Frequently Asked Questions (FAQs)

Under Local Water Done Well, all councils were required to assess how they will deliver water services in the future and prepare a Water Services Delivery Plan demonstrating how they will meet future regulatory, infrastructure and financial sustainability requirements.

Throughout the Local Water Done Well project, engagement occurred through governance groups, technical working groups, iwi chair forums and the public consultation process. Feedback helped inform development of the service delivery options considered by Council.

The Government's Local Water Done Well reforms require all councils to demonstrate how water services will remain compliant, financially sustainable and capable of meeting future regulatory requirements. As a result, councils cannot simply maintain the status quo and were required to consider future delivery arrangements through a Water Services Delivery Plan.

This was required under the Local Government (Water Services Preliminary Arrangements) Act 2024.

The Water Services Delivery Plan required Council to demonstrate that waters services is financially sustainable, how waters services will be delivered under the Local Water Done Well framework, and a plan to make this happen.

It was approved by Council resolution on 26 August 2025, submitted to the Department of Internal Affairs on 29 August 2025, and approved by the Secretary for Local Government on 28 October 2025.

This was one of the criteria that the Department of Internal Affairs assessed Council on in the Water Services Delivery Plan.

Local Water Done Well requires financial sustainability to avoid history repeating itself with a lack of investment in waters infrastructure that we have seen across Aotearoa New Zealand.

There are three statutory tests that the SWIBU will be required to meet in order to demonstrate that water services are financially sustainable:

  • Revenue sufficiency: is SWIBU collecting enough revenue to cover the debt and costs of water services delivery?
  • Investment sufficiency: is SWIBU planning to invest enough to meet levels of service, regulatory requirements and provide for growth?
  • Financing sufficiency: is the funding and finance arrangements SWIBU has in place enough to meet the planned investment requirements?

Financial ringfencing ensures that all revenue collected by Council (through SWIBU) is reinvested back into waters services and not into other services that Council delivers.

Council has not historically had the issues that these requirements are trying to avoid so this does not change how Council conducts business. The key change in the background is to meet the planning and reporting requirements and to separate the books in our systems.

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