Local Water Done Well

What is Local Water Done Well?

Local Water Done Well (LWDW), is a programme of reforms introduced by the Government in February 2024 that replaced what was known as Three Waters Reform.

The main changes from the previous water reform approach are:

• The Three Waters Reform has been repealed, and the co-governed water service entity model removed.
• Council ownership and control has been reinforced.
• Updated rules for water quality and investment in infrastructure have been set.
• Ensuring water services are financially sustainable is front of mind.

Read the Department of Internal Affairs' information for councils.

The Water Services Preliminary Arrangements Bill (Bill 2) lays out the foundations for the next stage of water reform:

• Councils must develop and submit Water Services Delivery Plans (WSDPs) within 12 months of the bill’s passing.
• Basic "economic regulation" through information disclosure requirements.
• Enabling councils to design the structure, delivery method and funding and financing arrangements for their water services.
• Councils are required to submit a one-off WSDP in mid-2025, by 3 September 2025. We need to consult with our community on the plan, which needs to demonstrate how, whatever model we go with, would achieve financial sustainability by 1 July 2028.

There are several options available for investigation and as part of this journey, we’re looking at options which involve delivering these services by ourselves as well as working with New Plymouth and South Taranaki district councils to consider what joint water services delivery could look like in Taranaki.

Legislation

• The Local Government (Water Services Preliminary Arrangements) Act was enacted on 2 September 2024.
• Bill 3 is expected to arrive in late 2024 to cover a framework for economic regulation and the more detailed powers and duties of water service delivery entities
• For more information on the Act and WSDPs go to Department of Internal Affairs website.

Decision making process

At a Policy and Services Committee meeting on 22 October 2024, the committee recommended to proceed with both joint and independent WSDPs. Read the agenda here, the report to Council is on page 63 of the agenda.

Over the following months, elected members were presented with more information on ownership/structure options, governance arrangements, timeframes and delivery costs, and transition planning.

At an Extraordinary meeting on 25 February 2025, Council discussed which of the two WSDPs will be their preferred option for public consultation. In a 7 to 4 vote a joint WSDP in the form of a regional Water Services Council Controlled Organisation (CCO) was confirmed as the preferred option for public consultation. The discussion reflected the complexity and importance of the decision before the Council, noting that both options have their advantages and disadvantages. One thing that was made clear by the Elected Members was the desire to hear from their community on what they believe is the best long-term option for the Stratford district.

On 10 March 2025, the Consultation Document was adopted by Council for public release.

The alternative option included in the Consultation Document for public opinion was keeping the ownership and delivery of water services in-house, noting that this option would still result in some change to how SDC operates water services delivery and require increased investment to meet anticipated legislative and compliance requirements.

SDC consulted the community from 30 April to 30 May.

Consultation ran parallel with neighbouring district councils and where possible resources were shared to encourage uptake in engagement across the Taranaki region. SDC utilised a wide range of media including Antenno App, print media, social media, radio and inperson engagements to encourage participation, and accepted submissions through a number of channels to maximise responses. The Consultation Document was available in hardcopy at council facilities and public meetings as well as a downloadable PDF, and provided as content on SDC’s engagement platform Your Say Stratford.

A total 185 submissions were received during the consultation period. 12 submitters supported the proposed Option A (Regional WSCCO), 170 supported Option B (stand-alone in-house business unit / Enhanced Status Quo) and 3 submitters didn’t specify a preference.

Engagement with Māori

The Water Service Delivery for Taranaki Project has had involvement and input from iwi/mana whenua by way of Post Settlement Governance Entity (PSGE) member participation in the Steering Group, Pou Taiao staff on the Project Working Group, Technical Working Group and briefings to Taranaki Iwi Chairs.

Governance considerations have been shared with Steering Group members including PSGE representatives, participating Pou Taiao staff and Iwi Chairs. Their feedback has been incorporated into delivery model development throughout the process, and were invited to make submissions during consultation.

SDC received a submission from Ngāti Ruanui as part of the public submission process, favouring Option 2 , the In-house delivery model.

Council's final decision

Elected Members heard from and deliberated on submissions received at a Policy and Services Committee meeting on 24 June 2025.

This resulted in a unanimous decision to recommend an in-house delivery model for water service delivery.

The main themes from elected members in making their decision on an in-house delivery model included:

• Overwhelming support from the community;
• SDC’s capabilities to meet current and future legislative requirements;
• Retaining local decision-making;
• SDC’s ability to manage existing debt and borrow for future infrastructure projects; and
• Collaboration is already at play and SDC will continue to identify ways of working with other councils if it’s beneficial to Stratford district residents and ratepayers.

Full Council then ratified this recommendation on 8 July 2025, formally adopting:

• An in-house stand-alone business unit as the future delivery model for Water, Wastewater and Stormwater services for the Stratford district.