The 2016 campylobacter outbreak in Havelock North prompted significant reform in regulating New Zealand’s three water systems: drinking water, wastewater, and stormwater. Key milestones included:

• The establishment of Taumata Arowai through the Water Services Regulator Act 2020 to oversee water services.
• The stricter compliance standards introduced by the Water Services Act 2021, replacing parts of the Health Act 1956.
• The National Policy Statement for Freshwater Management 2020 under the Resource Management Act 1991, influencing environmental regulation.

From 2020 to 2023, the Three Waters Reforms Programme of the then Labour Government, explored future management options, including creating ten new Water Services Entities.

Following the 2023 national election, the Government repealed prior reforms in favour of a new framework, Local Water Done Well (LWDW), in February 2024.

The government has introduced three bills to implement LWDW:

1. Water Services Acts Repeal Act 2024 (17 February 2024).
2. Local Government (Water Services Preliminary Arrangements) Act 2024 (2 September 2024). The Act requires councils to submit a Water Services Delivery Plan (WSDP) by September 2025. Councils are required to consult with their community on at least two water service delivery models including an in-house standalone business unit
3. Local Government (Water Services) Bill was introduced in December 2024. The bill currently is in front of parliament and expected to be passed by mid-2025. Once enacted, the legislation will govern water services delivery arrangements.

The Water Services Delivery Plan (WSDP) is a one-off document aimed at establishing a pathway to sustainable water service management. It must be submitted to the Department of Internal Affairs by 3 September 2025.

While the WSDP has no regulatory function (the Long-Term Plan remains the primary accountability document), it must cover a 10-year timeframe, with detailed plans for the first three years. The WSDP should address:

• Assessment of three waters infrastructure
• Investment requirements
• Financing and delivery through the chosen service model
• Ensuring financial sustainability, compliance with regulatory and water quality standards, and support for future growth.

The Government has committed to keeping water services in public ownership under LWDW, prohibiting councils and water organisations from privatising them. Key protections include:

• Water assets cannot be used as security, sold, or transferred except to another water provider for specific purposes.
• Only local authorities or consumer trust trustees can own water organisation shares, which cannot be sold or transferred for profit.
• Franchise or concession agreements with third parties are not allowed.

These measures aim to safeguard public ownership and control of water services.

Council has a well-established relationship with Te Rūnanga o Arowhenua (representative of local mana whenua). This will continue under the proposed SABU model.

For water services delivered by WSCCO, it will be their responsibility to build and maintain ties with mana whenua. This process will take time and require close collaboration with the Council.

No matter which model is selected, the cost of delivering water services will be higher than what was forecasted in the LTP 2024-34.

This increase is because of the need to meet new regulations and to deliver the expected capital expenditure over the next ten years.

The average Ashburton township ratepayer in 2024/25 will pay around $1,450 for water services, broken down as follows:

• $706 for drinking water (targeted rate – meaning this is a fixed charge regardless of the value of your property)
• $604 for wastewater (targeted rate - meaning this is a fixed charge regardless of the value of your property)
• $144 for stormwater (as part of the urban amenity rate/general rate, based on the capital value of your property)

See comparison of models to see likely impact on rates based on the modelling completed.

Water Rates: Right now, you pay for water services as part of your council rates. The council decides how much you pay, and you include this payment in your rates bill. This will continue under our proposed SABU model.

Water Charges: If a Water Services Council Controlled Organisation (WSCCO) is established, it will take over setting and charging for water services. This means you'll pay directly to the WSCCO, and these payments will be called water charges, not rates.

The key difference is who charges you—council (rates) or WSCCO (charges).

If water services are delivered by a WSCCO, your rates bill would likely go down. However, you'd get a separate invoice from the WSCCO for water services.

The difference between Council's current approach to delivering water services and the proposed SABU model is outlined below:

Unchanged: Council still owns assets and manages water services, sets water rates, and elected members oversee everything. Funding is still limited by the council's borrowing limits.

New: SABU requires developing and implementing Water Services Strategy, compliance with regulators, financial ringfencing (water money spent only on water), and focused annual reporting for water services.

Water meters are installed on all connections (except Ashburton, Rakaia, and Montalto) to assist with leak detection, demand management, and water use education.

While there are no current plans to use them for charging, this could change in the future.

If SABU model is chosen: The Council might consider fixed or usage-based charges in the future, but there’s no clear indication water meters will be used for this.

If WSCCO model is selected: Within five years, the WSCCO must move to direct charging, possibly through fixed or usage-based systems, which may involve using water meters to calculate charges.

No, water collected for your own personal use is not affected by the reforms.

Council initially considered a range of options for delivering water services, including working with other Canterbury Councils. On balance, as outlined in the information provided in this consultation, the SABU model is considered the best option at this time for delivering sustainable, resilient, and high-quality water services while retaining local control and accountability.

Council initially explored an option of a Council Controlled Organisation (CCO) owned by Council and governed by the EA Networks Board as another potential option. On balance, as outlined in the information provided in this consultation, the SABU model is considered the best option at this time for delivering sustainable, resilient, and high-quality water services while retaining local control and accountability.

No, septic tanks are privately-owned and are not affected by the reforms.

Privately owned mixed-use water schemes will be unaffected by reform and will remain privately owned. Council owned mixed use water schemes will transfer over to the new water services entities but users will have opportunity to transfer ownership and operation of their scheme to the communities who use them.

Property owners in the Ashburton District are responsible for all costs associated with private bores, including permits, drilling, installation, and maintenance. This remains unchanged under the reform.

Elected members 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 by the Secretary, the new water service delivery model will be established.