Development Contributions consultation

Submissions close at 5.00pm on Thursday, 2 May 2024

At the same time as our Long-Term Plan consultation is underway we are also seeking feedback on some proposed changes to the Development Contributions Policy.  The change in the policy extends Development Contributions across the district, widens the scope of applicable growth-related capital projects, updates the demand measures, and adds criteria for remission for certain types of development.  


Over the next 10 years the population of Whanganui is expected to grow by 4,000 people. This growth will result in approximately 1160 additional residential dwellings across the district, within both greenfield development in urban expansion areas and infill development within existing suburbs. 

To support this growth, the council needs to provide infrastructure including new pipes, roads and community facilities. The council has three main sources of funding available to provide infrastructure for growth: rates, development contributions and third-party funding (like NZTA for roads). 

The Development Contributions Policy is a way for the council to collect revenue to pay for the infrastructure required to support growth, in a fair and equitable manner from developers, and future residents, who benefit from that growth.   

Extension of Areas 

In 2018, the council adopted the first Development Contributions Policy to cover the growth areas of Springvale Expansion Areas and Northwest Growth Area. 

Since 2018, the way our district is growing has changed, with more widespread development occurring. As a result, the council is proposing to extend the Development Contribution Policy to the whole of the Whanganui District - this includes all existing suburbs and the Mill Road Industrial Area. 

This will result in substantive changes to the capital projects included within the policy to provide for growth, and it will include eligible community infrastructure and reserve projects. Project costs have also been updated to reflect the current costs as included in the Long-Term Plan. 

Demand Measures 

Demand measures are used for calculating the level of demand a new development creates on council infrastructure. 

For residential development, the council is proposing to move from a site-based demand measure to an occupancy-based demand measure which is tied more closely to the actual demand which a new dwelling (or new additions to a dwelling) places on council infrastructure. This will mean that larger dwellings, able to accommodate more people, would pay higher levels of development contributions.    


Remissions allow the council to reduce the amount of Development Contributions for specific types of activities. The council is proposing to include remissions within the Development Contributions Policy for community groups and trusts, and social housing where there is a community benefit.

Statement of Proposal - Proposed Development Contributions Policy 2024 (PDF, 289KB)

Proposed Development Contributions Policy – 2024(PDF, 832KB)