Public consultation on 'Water services delivery in Whanganui - planning for the future' has now closed. View our consultation page here.
Latest updates
Following the October 2023 general election, the new Coalition Government announced a new direction for water services (drinking water, stormwater and wastewater services) called Local Water Done Well, aimed at addressing concerns about New Zealand’s water quality and water services’ infrastructure investment, while keeping decision-making over water services and assets local.
In early 2024, it repealed the previous government's Three Waters legislation and quickly developed its replacement model that it says recognises the importance of local decision making and flexibility for communities and councils to determine how their water services will be delivered in the future.
Councils must demonstrate how they will meet new rules for financial, quality and economic standards and regulation. Council's must also choose how to set up our water service delivery to meet these new requirements.
Read the government's latest updates and media releases on Local Water Done Well
The key policy features of Local Water Done Well are:
- Council water infrastructure assets are not to be transferred to government-mandated entities, but there will be new rules for investment, borrowing and pricing. Councils have choices about how they design their service delivery to meet these new rules
- Under legislation, councils are required to formulate, adopt and submit a plan by early September 2025 for how they will deliver water services that meet water quality and infrastructure standards, while being financially sustainable in the long-term
- Plans must include an implementation plan and a commitment to give effect to it
- There is a new economic regulation regime inside the Commerce Commission overseeing these rules
- Government will also introduce new quality standards for wastewater and stormwater. There will be greater scrutiny of our compliance with the rules we have to meet for taking water and discharging wastewater.
We expect this to lead to an increase in the cost to the end user compared to what our current Long-Term Plan 2024-2034 indicates in 2034.
One of the legislative requirements for councils is to develop a one-off Water Services Delivery Plan (WSDP). The water services delivery plan must include a description of the proposed model or arrangements to deliver water services, including whether this will be achieved alone, or by working with other councils.
The government is setting a tight timeframe for the changes, with the WSDP to be submitted by 3 September 2025.
Regardless of the model chosen, in the future all water service providers (including councils) must meet clear minimum requirements set out in the legislation. These include meeting regulatory standards, financial sustainability requirements such as ringfencing of water services, and restrictions against privatisation. There are also additional requirements for water services council-controlled organisations to ensure they are operated and governed effectively.
There will also be a new approach for managing stormwater. Councils will retain legal responsibility and control of stormwater services but will have flexibility to choose the delivery arrangements that best suit their circumstances.
Changes are proposed to improve the management of overland flow paths and watercourses in urban areas (an urban area's natural drainage system). This includes clarifying council and private landowner roles and responsibilities, enabling new planning and regulatory tools, and enabling ‘service agreements’ to support the integrated management of stormwater networks.
Updated 20 May 2025
The council's decision date about its preferred model has been deferred from the planned 20 May date. This means the council now plans to adopt its Water Services Delivery Plan in July this year. Despite the new date for deliberations, the council still expects to meet the government’s legal requirements.
All of the council’s options remain under consideration and the council is carrying out further work to address concerns raised during consultation.
We are placing Te Awa Tupua at the heart of the decision-making process and incorporating information that the Local Government Funding Agency and the Commerce Commission have shared since our consultation about their requirements. Plus, we are looking at a joint council proposal which could include a non-harmonised model which would ring-fence the costs for each council but share the cost savings from scale so that no-one pays more than they would have.
For further details, please read our media release.
Updated 13 March 2025
From Monday 17 March, Whanganui District Council will consult with the community on a preferred option for water services delivery in our district. This comes as a response to Government’s new plan for managing New Zealand’s drinking water, wastewater and stormwater services, known as Local Water Done Well.
The council has put forward four delivery models for our community, all of which meet the Government’s requirements for financial resilience, affordability for ratepayers, and the ability to meet new compliance and regulatory standards. The models include the status-quo (in house), a Whanganui District Council controlled organisation, a multi council-controlled organisation with Rangitīkei and Ruapehu district councils and another with as many councils in the Manawatū-Whanganui region as possible.
Visit our have your say page to find out more and read our media release here.
Update 13 December 2024
At the full council meeting on Tuesday, 10 December, councillors decided on their preferred option for community consultation around the future delivery of water services.
The preferred option is a multi-council controlled organisation (CCO) with neighbouring district councils Rangitīkei and Ruapehu.
You may have seen the media release that we issued on 10 December. The full report that was considered by councillors can also be found in the agenda (Item 8.5) if you would like more information.
Next steps include the preparation of consultation materials which will go to a Strategy and Policy Committee early 2025 for approval with public consultation expected to be held around March/April.
On Tuesday, 10 December, the government also introduced its third Bill and the implications of this are now being considered by the Three Waters project group.
Prior to councillors making a decision about its preferred option, information-sharing and early engagement was held with the Whanganui community. Read more about their views in Item 5.6.
Update 4 October 2024
Over the last six months we have been in a period of options appraisal to prepare for the best chance of success whatever the government’s policy decisions and to ensure our community is in the best position for the future.
This has included an assessment of ‘going it alone’ under the new rules and joining up with one or more of our regional neighbours to ensure our three waters infrastructure is sustainable and continues to meet environmental and economic regulatory requirements.
We are in a phase of appraising our options, both as an individual council and with our neighbours in the Manawatū-Whanganui region.
We have made some good investment decisions in the past compared with some other councils and have increased investment in three waters infrastructure in our Long-Term Plan for the next ten years, but the government’s new rules are expected to increase the cost for end-users, whether we continue to go alone or join up with some of our neighbours.
The council will have to take a range of factors into consideration when it makes its decision about how to proceed – the financial impact on water users, community views and the strategic benefits and disadvantages of joining up with our neighbours. Based on current plans, the financial modelling shows there is a very small difference in the costs to the end user whether we go it alone or join up with our neighbours. This will be confirmed through the work over the next few months.
Read the government's guidance for local authorities and the options
Local Water Done Well is being implemented in three stages, each with its own piece of legislation.
After the repeal of the previous government's water services legislation, the Local Government (Water Services Preliminary Arrangements) Bill was introduced to Parliament on 30 May and became law in August 2024.
Key requirements in the Act are:
- Councils must develop Water Services Delivery Plans by 3 September 2025
- Plans must outline future water services delivery arrangements, and for councils to commit to an implementation plan
- Councils’ plans must include information about their water services operations, assets, revenue, expenditure, pricing, and projected capital expenditure, as well as necessary financing arrangements, as a first step towards future economic regulation
A further Bill, providing more detail, was introduced in December 2024 and is expected to become law in mid-2025.
This will put in place the long-term requirements that Whanganui District Council will have to meet.
More information on the legislation is available from the Department of Internal Affairs.
Managing our water infrastructure is a substantial part of the council’s day-to-day operations and makes a significant contribution to the well-being of our district.
About 80% of our capital investment is being spent on water services, roading and footpaths over the next 10 years.
This includes a $30 million plus long-term programme of wastewater and stormwater network improvements across our district to improve their performance during weather events, and increased investment in the water supply to meet the new standards such as adding UV disinfection.
The quality of water we provide is regulated by Taumata Arowai – find out more about its role.
Learn more about our water services here
Drinking water
We manage five water supply schemes throughout the district, the largest of which is Whanganui’s urban water supply. The other water schemes are Fordell, Pākaraka, Mowhanau and Westmere rural water supplies.
Our water supply assets include:
• six bores
• five treatment plants, 17 pump stations, 29 reservoirs
• about 540 km of water supply pipelines
• 2199 hydrants
Stormwater
Stormwater is the water that runs off surfaces like roofs, roads, driveways and footpaths.
Our stormwater network includes:
• about 174km of pipeline
• Over 3,459 manholes
• 18km of open channel
• 11 retention and filtration basins to treat stormwater run-off and help prevent flooding
Wastewater
Wastewater is the used water that drains from your sinks, bathroom or toilet.
Wastewater reticulation systems are provided in the Whanganui urban area, Mowhanau and Marybank.
Our wastewater network includes:
• Two treatment plants (the biggest is on Airport Road)
• 38 sewer pump stations
• About 289km of pipeline
• About 4781 manholes
• An ocean outfall approximately 1.7 km off South Beach.
In 2016 a community outbreak of gastroenteritis in Havelock North resulted in about 45 hospitalisations and possibly contributed to three deaths.
The outbreak was traced to the contamination of drinking water, raising serious questions about the safety and security of New Zealand’s drinking water.
In mid-2017, following the Government Inquiry into Havelock North Drinking Water, the then government established the Three Waters Review to look at how to improve the regulation and service delivery arrangements of drinking water, wastewater and stormwater – the three waters – to better support New Zealand’s environment, health, and safety.
In July 2020, the Labour Government announced the Three Waters Reform Programme in response to mounting evidence of the challenges facing three waters service delivery nationally.
Modifications followed public feedback and legislation was passed under a renamed Water Services Reform Programme that would see councils across the country combined into 10 publicly-owned, specialised water service entities.
It was proposed Whanganui would form part of a proposed Manawatū/Whanganui water services entity, that would also include six neighbouring territorial authorities – Palmerston North City Council and Rangitikei, Ruapehu, Manawatū, Horowhenua and Tararua district councils.
Following the October 2023 general election, the new coalition government announced it was repealing the previous Three Waters legislation.
Learn more about our response to the previous Three Waters policy here
What are the three waters?
The three waters refers to our drinking water, stormwater and wastewater as managed by the council.
Managing our water infrastructure is a substantial part of the council’s day-to-day operations and makes a significant contribution to the well-being of our district.
Drinking water
Drinking water is the water (usually from a tap) that is drunk or used for food preparation. We manage five water supply schemes throughout the district, the largest of which is Whanganui’s urban water supply. The other water schemes are Fordell, Pākaraka, Mowhanau and Westmere rural water supplies.
Stormwater
Stormwater is the water that runs off surfaces like roofs, roads, driveways and footpaths.
Wastewater
Wastewater is the used water that drains from your sinks, bathrooms or toilets Wastewater reticulation systems are provided in the Whanganui urban area, Mowhanau and Marybank.
Learn more about our water services here
What Local Water Done Well means for Whanganui
Since the October 2023 elections, the Government has repeated the need for councils to work together to achieve scale in the delivery of water services. Our modelling shows that the more people paying for water services, the better. More users (connections) enable a more efficient, effective, and sustainable water services delivery.
While we have previously stated that our preferred option is a partnership between Whanganui, Rangitīkei and Ruapehu district councils to deliver water services, all options still remain on the table. When considering options, the council will look at which one offers greater long-term financial stability, keeps decision-making within our awa catchment, and provides the opportunity to improve compliance monitoring and protect skilled local jobs.
What about Te Awa Tupua?
The Te Awa Tupua framework seeks to take a catchment-wide approach to ensure that all of the waterways which together join to form the Whanganui River are viewed and managed, not in isolation, but with reference to the whole River as an interconnected ecosystem.
In terms of Local Water Done Well, Te Awa Tupua is placed at the heart of our decision-making process as we consider our options for the adoption of a Water Services Delivery Plan.
What is a Water Services Council-Controlled Organisation
A Water Services Council-Controlled Organisation is a body that is specifically established to manage and deliver water services, where the ownership and control primarily lie with one or more councils – essentially it is a company owned by councils dedicated to providing water services to the community.
Whanganui District Council believes there is a role for Iwi representation that brings a Te Ao Māori perspective to shareholder decisions. The detail of Iwi and Hapū involvement should be addressed at the design phase of any water services council-controlled organisation and draw on existing examples of good practice from local government and the water sector.
Once a preferred model is agreed by the council, this involvement will be formalised in partnership with Iwi and Hapu. In the meantime, we will continue to work with Iwi and Hapū to identify meaningful opportunities for mana whenua input.
What are the effects on levels of service
Whanganui District Council already has agreed levels of service for its three waters. This level of service is committed to in our Long-Term Plan 2024-2034 and reported on annually. No change is forecast to levels of service for the short-term under any of the proposed models.
However, it is important to note that a multi council-controlled organisation established in response to Local Water Done Well may subsequently reprioritise or improve levels of service to ensure alignment between the geographical areas serviced by the multi council-controlled organisation.
What is a Water Services Delivery Plan?
Water Services Delivery plans are a way for councils to demonstrate their commitment to deliver water services that meet new and existing regulatory requirements, support growth and urban development, and that are financially sustainable. These plans are one-off documents that will outline the council’s path forward under Local Water Done Well. More information about the requirements of this plan can be found at: www.dia.govt.nz/Water-Services-Policy-and-Legislation
What is the impact on rates?
We have made good investment decisions in the past and have budgeted for increased investment in three waters infrastructure in the Long-Term Plan 2024-2034. Local Water Done Well requires any assets, revenue, expenses and debt associated with water services to be kept separate or ‘ring-fenced’ from the wider services of the council. The new requirements of Local Water Done Well are expected to increase the cost to deliver water services in the future.
Councils and the Government agree that water will cost all communities more in the future than what we have planned for in our Long-Term Plan – regardless of which model we proceed with. This is due to a range of things, such as mitigation for climate change to reduce the chance of flooding, population and industrial growth, replacing or upgrading ageing infrastructure, new standards increasing the cost of compliance, improvements in technology, health requirements and government policy.
If a WS-CCO was set up and charged customers directly for water, the council would no longer charge for water services in rates bills. The modelling showed that the financial impact on the cost of delivering the rest of council services is also marginal.
For further modelling information, please read our consultation document, pages 18-20.
Who will own our assets?
If a Water Services Council-Controlled Organisation (WS-CCO) is set up, assets will be transferred to that entity for ease of management, and to ensure the assets are financially separate from the rest of council. The council or councils (if we enter a multi council arrangement) will retain ownership of the assets as shareholders of the WS-CCO. They will represent community interest in this shareholder capacity.
Will they be privatised? No, there are legislative restrictions against water assets being privatised. Council will maintain ownership of water services assets in a shareholder capacity.