By Alexandra Cain
Like many councils across Aotearoa New Zealand, Kaipara District Council is working hard to reform the delivery of its water infrastructure as new water regulations are implemented across the country.
The Aotearoa New Zealand water reform policy being ushered in under three tranches of legislation is known as Local Water Done Well (LWDW). Aside from Auckland and Wellington, water service delivery is currently the responsibility of the local government, territorial authority or council. These local councils are now being encouraged to develop their own solutions to water service delivery, including ensuring planning for the financial sustainability of the ongoing water service delivery through the development of a Water Services Delivery Plan by September 2025.
Kaipara District Council, a small, largely rural district council north of Auckland, is exploring a number of possible options to meet a huge challenge: only 30 per cent of residents are on town water supply. The council operates and maintains five water supply systems across the Kaipara District: Dargaville (including Baylys Beach), Glinks Gully, Ruawai, Maungaturoto and a scheme in the popular holiday destination Mangawhai.
In its Long Term Plan 2024–2027, Kaipara District Council has committed to investing in its water supply and increasing capacity through consent renewal, alternative water sources, and storage solutions. It’s investigating two options to achieve its goals: either connecting to the Te Tai Tokerau Water Trust or upgrading the Waiatua Dam. Current estimates for each of these options are in the tens of millions.
‘Council has discussed three potential options: a shared services arrangement with single or multiple councils, a combined Northland Council–controlled organisation, or continuing with the status quo. We have work to do to land on the best possible outcome for ratepayers and residents,’ says Jason Marris, Chief Executive, Kaipara District Council.
Consultation with Kaipara communities on the possible options for Kaipara’s water services arrangements is required by the LWDW legislation and is ongoing.
‘For us in Kaipara District, sticking to the status quo is a difficult option and not affordable. Much of our water infrastructure needs upgrading as a result of growth or is aging,’ says Marris.
‘We have a number of capital projects lined up for the next three years, mainly focused on renewals and upgrading existing infrastructure. We understand the importance of delivering safe, clean, reliable drinking water to our communities.’
The small ratepayer and revenue base is one of the main problems facing Kaipara District Council.
‘Our elected members are facing a huge amount of pressure from their communities to keep rates low and minimise any increases. Many of our assets have had, and will continue to have, their lives extended in use where possible,’ says Marris.
There are real challenges with the water supply for Dargaville and Baylys Beach, as their water supply is drawn from the Kaihu River and Waiparataniwha Stream, which dries up during summer.
Council monitors the flow rate of the Kaihu River, which can fluctuate significantly, depending on rain and run-off along the length of the river. The amount of water that the council can draw from the river is limited, and there needs to be a solution to increase its security and resilience.
‘If we do not do anything, we will continue to see our residents facing water restrictions during summer, which leads to lower business and resident confidence. That is likely to become even more critical as we are experiencing increasingly dry summers,’ says Marris.
Council also wants to make sure its water infrastructure is able to accommodate future urban developments.
‘Staff are aware of possible growth occurring with two recent Private Plan Changes in the Dargaville area, and want to ensure infrastructure is available to meet that growth,’ says Marris.
‘We also have other areas of high growth. Mangawhai has a small town supply, mostly supplying the Mangawhai Heads Holiday Park and the Wood Street commercial precinct, and is one of New Zealand’s fastest-growing towns. We do need to look to provide the facilities every modern town needs.’
As council works through the water reforms, it is simultaneously trying to extend the life of its existing water assets.
‘Under potential new arrangements, where we share services or operate under a council-controlled organisation (CCOs) with other Northland councils, we will be able to look at other options for funding and an increased ability to pool resources,’ says Marris.
‘We are exploring every possible option and arrangement under the new legislation to ensure we can get the best fit and service delivery for our communities. We are talking with neighbouring councils to explore options with them,’ he says.
It’s a similar approach at Te Kaunihera o Te Hiku o te Ika Far North District Council. Council’s head of infrastructure, Tanya Proctor, confirms that similar water service delivery options, set by statute, were presented to elected members in November 2024.
These were further workshopped with elected members in February.
‘That consultation process will be run as part of the annual plan process in April and May 2025,’ says Proctor.
Under the LWDW reforms, water assets across New Zealand may move to a CCO model. They will still be publicly owned through a shareholding arrangement among constituent councils, so they are less subject to the short‑term local government electoral cycle.
Once the CCOs are set up with independent boards as part of their governance arrangements, they will have some level of autonomy from their constituent councils. They can set up charges and rates, but the proposed economic regulator, the New Zealand Commerce Commission, will determine if they are reasonable.
Nevertheless, there is concern across the community that the CCOs will not be fully answerable to the public if the constituent councils have too much separation from them.
Steve Carne, Director and Principal of Auckland‑based niche water advisory consultancy Taonga Water Advisory, explains that among a number of objectives, the reforms are trying to ensure revenue raised from water and wastewater charging is actually used for water and wastewater infrastructure.
‘At the moment, water services revenue can go into a big pot in councils’ finances and, aside from water services, it can potentially also be used to pay for construction and maintenance of everything from parks and reserves, to libraries to cemeteries. Because most water services assets are underground, you don’t see them. So, when councils are under political and community pressure to build and maintain things you see, the necessary long-term maintenance of water services assets can take a back seat to other council priorities,’ Carne says.
As local councils work through how best to manage and operate their water assets, there is an opportunity for New Zealand to learn lessons from other jurisdictions that have already worked through water reforms. This includes making sure local environmental, public health and economic regulators talk to each other. It’s also important to heed the lessons from other markets of keeping water prices at artificially low rates, which often leads to consumers being eventually asked to absorb steep price rises.
New Zealand’s LWDW reforms have a long evolution ahead. Let’s hope they are successful in securing a more sustainable future for New Zealand’s water infrastructure.