Local Water Done Well Legislation Secures Future of NZ Water Services

Local communities across the country are set to benefit from the Government’s completion of the Local Water Done Well legislation, a reform package designed to provide safe, reliable, and financially sustainable water services. The announcement was made by Local Government Minister Simon Watts and Commerce and Consumer Affairs Minister Scott Simpson, who highlighted the new framework as a long-term solution to decades of underinvestment.

A Clear Alternative to Three Waters

The legislation replaces Labour’s repealed Three Waters policy, which was rejected by councils and communities in 2023 due to concerns about centralisation and cost. Under the new laws—the Local Government (Water Services) Act and the Local Government (Water Services) (Repeals and Amendments) Act—ownership and decision-making remain in the hands of local councils, while providing them with the tools and financial models needed to manage services sustainably.

“When we came into Government, we promised to deliver a solution that empowered local communities, protected ratepayers, and ensured future investment in water infrastructure. Local Water Done Well delivers exactly that,” Minister Watts said.

Coverage and Delivery Plans

Already, more than two million New Zealanders stand to benefit from accepted water service delivery plans. As remaining councils submit their proposals, more communities will be included under locally designed models that promote sustainability and encourage infrastructure renewal.

The legislation provides for both multi-council arrangements and single-council management, giving councils flexibility to decide what works best for their residents. Multi-council models are expected to deliver stronger financial sustainability through shared resources, while single councils retain the option to manage services independently.

Financial Sustainability and Oversight

One of the Government’s key priorities is ensuring water services are financially sustainable without imposing excessive costs on households. Minister Watts acknowledged that fixing decades of underinvestment requires significant funding, but stressed that the reforms balance cost-effectiveness with quality.

“Local Water Done Well also introduces oversight and monitoring to ensure public confidence,” Watts said. “This includes new requirements for councils to report on progress and financial management, ensuring transparency and accountability.”

To strengthen consumer protections, the legislation introduces economic regulation of water services, with the Commerce Commission tasked with overseeing fair pricing and service standards.

“Ratepayers deserve the confidence that they’re getting quality water services at a fair cost,” Minister Simpson said. “The Commerce Commission’s role will ensure this accountability, initially focusing on local government drinking water supply and wastewater services.”

Cutting Unnecessary Costs

The Government also highlighted that the legislation strips away excessive and unnecessary regulatory requirements, focusing instead on practical, safety-driven compliance. The aim is to reduce red tape for councils while maintaining essential safeguards for public health and environmental protection.

A Step Toward Growth and Housing Development

Beyond improving water services, the reforms are expected to enable housing growth across the regions by ensuring water infrastructure is able to meet future demand. Adequate and sustainable water systems are seen as essential to supporting New Zealand’s urban development and regional expansion.

Looking Ahead

With submissions for delivery plans underway, the Government has expressed confidence that most councils will embrace the framework. Minister Watts commended councils already leading the way with strong proposals, noting that flexibility is key: “Ultimately, Local Water Done Well is about giving locals choice. Whether through multi-council arrangements or stand-alone models, the focus remains on delivering safe, reliable, and affordable water services for generations to come.”

The reforms mark one of the Government’s most significant steps in infrastructure renewal, addressing decades of neglect while keeping ownership and decision-making rooted in local communities.