Selwyn Leads NZ in Water Reform with Launch of First Local Water Entity

In a landmark moment for local government reform in New Zealand, Selwyn District Council has officially launched Selwyn Water, the country’s first local water services entity under the Coalition Government’s new Local Water Done Well policy. This move represents a significant shift in how water services are managed, aiming to ensure safe, sustainable, and community-focused water delivery systems.

Announced by Local Government Minister Simon Watts, the launch underscores Selwyn’s leadership in adopting practical, forward-looking solutions to one of the country's most pressing infrastructure challenges—delivering reliable and affordable drinking water and wastewater services.

A Milestone in National Water Reform

Minister Watts commended the Selwyn District Council for becoming the first in New Zealand to:

• Establish a water services Council-Controlled Organisation (CCO).

• Have a Water Services Delivery Plan formally accepted by the Secretary for Local Government, Paul James.

“The launch of Selwyn District’s water service entity today marks a significant milestone of water reform,” said Watts. “Selwyn has shown that local leadership, combined with sound and practical government policy, can achieve real outcomes for communities.”

The Government’s Local Water Done Well framework empowers local councils to lead water reform efforts, in contrast to the previously proposed centralised models. Selwyn Water will now manage the district’s drinking water and wastewater operations under a more community-responsive governance model.

Addressing Financial Sustainability and Price Management

One of the standout features of Selwyn Water’s plan is its focus on financial sustainability while maintaining compliance with public health, environmental, and community standards.

Minister Watts acknowledged the challenges ahead, particularly regarding price increases during the early years of the delivery plan. However, he expressed confidence in the oversight mechanisms in place.

“I expect the Commerce Commission, as the economic regulator, will closely monitor to ensure the delivery of forecast levels of capital investment, and that any price increases are justified,” he noted.

Selwyn Water is also expected to ensure that growth-related infrastructure costs are fairly recovered from new developments, keeping the principle of “growth pays for growth” at the forefront.

Collaborative Regional Model Encouraged

While Selwyn is the first to launch its entity, the door is open for other councils to follow. Selwyn Water’s flexible constitution allows for collaboration and partnership with neighbouring districts in the future, creating opportunities for a regional CCO model that could lead to:

• Lower consumer costs

• Improved efficiency

• Shared expertise

• Standardised service delivery

Watts added that the Department of Internal Affairs would actively encourage and support councils exploring regional consolidation options.

“These future partnership opportunities have significant potential to deliver greater efficiencies, standardisation, knowledge sharing, and ultimately, lower costs for consumers.”

Government Applauds Local Vision and Speed

Minister Watts praised Selwyn Mayor Sam Broughton, councillors, and council staff for their leadership, vision, and swift action in implementing the new model.

“Selwyn’s progress demonstrates the effectiveness of local leadership when backed by sound, practical Government policy and legislation,” said Watts. “They have the Government’s congratulations for their vision and hard work.”

The move sends a clear message that water reform in New Zealand can be done with local control, fiscal responsibility, and strong public accountability. Selwyn Water is expected to become a model for other districts as they begin to chart their own water reform journeys under the Local Water Done Well initiative.

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