Council to extend decision on Water Services Delivery Plan
Published on 20 May 2025
Earlier today, Whanganui District councillors received an update on Local Water Done Well, the coalition government’s new plan for managing New Zealand’s drinking water, stormwater and wastewater services.
Like all district and city councils, Whanganui District Council is required to choose a delivery model for our local water services. This must be done by early September 2025.
“The adoption of a water services delivery plan for our district is one of the most significant changes to local government in decades,” says Mayor Andrew Tripe.
“Fortunately, Whanganui is in a strong position, and the council has four viable delivery options. All remain on the table as we respond to the comprehensive and thoughtful feedback from our community, while also placing Te Awa Tupua at the heart of our decision-making process.”
The four options which formed part of the community engagement were a multi council-controlled organisation with Ruapehu and Rangitīkei district councils, a Whanganui District Council council-controlled organisation, a multi council-controlled organisation with as many councils as possible, as well as an in-house business unit.
“We have heard from our community who felt we have invested well in our water assets and did not want to cross-subsidise other councils. However, we are looking at a joint council proposal which could include a non-harmonised model, ring-fencing costs for each council but giving the benefits of scale, otherwise known as Local Pricing,” says Mayor Andrew.
Local Pricing (see the graph below) would see residents within each district charged on the same basis as currently, but where savings are realised, these can be shared. All three councils’ customers in this case benefit from these savings, while paying costs that relate only to the delivery of services in their district. So customers pay less than they would have if councils were to go on their own.
“At this stage we continue to believe a three-council model provides the best level of scale for cost benefits for our community, while also maintaining local identity and voice for all three councils if we align around the Whanganui and Whangaehu catchments.”
Cost benefits of around $18,000 per Whanganui connection over 30 years, or $588 per annum have been identified, if Local Pricing is considered as part of a three-council water services council-controlled-organisation.
“That is a significant saving, and it is important to note that Local Pricing may also offer further savings to Whanganui if there is a greater scale, something which requires further investigation," says Mayor Andrew.
In addition, since the council’s community consultation process, new information has been shared by the Local Government Funding Agency and the Commerce Commission about their requirements. These guidelines have allowed for a greater understanding of the implications for the council and our community, particularly if Whanganui was to continue with an in-house business unit.
Mayor Andrew says that “these factors were not part of the equation when we went out to our community, but it is pertinent that we consider them now as considerations such as public liability and ring fencing of assets, even with an in-house model, do come at a cost.
“As a council, we believe it is vital that we do not rush this process. Our decision must be based on a full and transparent consideration of all available information. This approach will help ensure we adopt a plan that delivers the best possible outcome for our community and our awa – now and into the future."
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.
A graph showing non-harmonised costs (aka Local Pricing) for Whanganui, Ruapehu and Rangitīkei district councils
