The future of water service delivery

Central Government has set a new direction for the delivery of water services (drinking water, wastewater and stormwater services). This is called Local Water Done Well (LWDW). It is an evolution of an earlier change proposal known as Three Waters Reform.

In 2025, we will be talking to our community about what they would like to see for the future delivery of water services in Hawke’s Bay. This is an important topic that needs public voice and views.

We don’t yet know what form our future water services will take but we do know we need to change the way we do things.

The challenges facing councils include:

• The cost of maintaining and replacing aged assets. Pipes, pumps and plants are reaching end of life after many were built during a boom between the 1950s and 1970s. Councils need to find significant funding to replace them. Changing the model of water services delivery will enable the community to borrow more money to fix assets, or replace them.
• New rules and regulations around drinking water safety and security. Safety standards and environmental protection requirements are increasing and many water service providers are currently non-compliant.
• Increased investment needed to build new infrastructure as our population grows.
• Increased need to build network resilience to natural hazards and a changing climate.

Between 2018 and 2023, Central Government proposed ‘Three Waters Reform’ (later the ‘Water Services Reforms’). This would have seen waters services, currently delivered by 67 different councils across Aotearoa, brought under 10 regional entities owned by local councils on behalf of the public. Napier City Council began preparation for the transition to Tairāwhiti/Hawke’s Bay ‘Entity F’ in 2022 and 2023.
In 2023 Central Government replaced Three Waters Reform with Local Water Done Well (LWDW), including:

• Establishing a regulator to oversee water infrastructure, ensuring sustainability, fair pricing, and quality standards,
• Implementing new financial rules, requiring self-funding water services, revenue to cover maintenance, and sufficient borrowing for growth, and
• Requiring councils to submit alternative service delivery models to the Minister for approval by September 2025.

LWDW has flexibility for councils to choose the model and governance structure that works best for their community.

There is no one-size-fits-all, across the country, different councils are looking at different models. In Hawke’s Bay, we are considering ways a regional approach to water services delivery may work including joining up with other Hawke’s Bay councils to have a multi-council entity managing our water. We are also considering the implications of having a Napier-only council-controlled organisation delivering water services.

One of the most important tasks for 2025 is to work with the community to identify which is the best model for us and our needs, now and in the future.

Until decisions are made about next steps, Napier City Council will continue to provide drinking water, wastewater and stormwater services to our residents.