$500m Watercare Investment to Modernise Auckland’s Infrastructure, Create Jobs

Auckland’s ageing water infrastructure is set for its biggest upgrade in years, with Watercare committing $500 million over the next 18 months to renew and replace essential assets. Local Government Minister Simon Watts says the record investment will not only deliver better services but also create new jobs and economic opportunities for Aucklanders.

Tackling the Legacy of Underinvestment

For decades, Auckland’s water services have suffered from limited reinvestment, leading to mounting infrastructure challenges. The Government acknowledges that this legacy has left households vulnerable to rising costs and declining service quality.

“The Government knows that decades of underinvestment in water services have created an unavoidable cost for everyday Kiwis,” Mr Watts said. “That’s why the Watercare Charter was developed last year in partnership with Auckland Council—to make sure water services remain affordable, while at the same time guaranteeing service quality and record investment.”

The Watercare Charter, established in 2023, is expected to save households nearly $900 million over four years, even as infrastructure upgrades accelerate.

Where the Money Will Go

Watercare’s $500 million renewal programme will be divided between treatment plants, pipelines, and other assets.

• One-third of the investment will be directed toward upgrading treatment plants, ensuring cleaner and more reliable water supply.

• The remainder will fund the replacement of pipes and related infrastructure, modernising Auckland’s network to reduce leaks, breakdowns, and service interruptions.

Watts described the investment as a 44 percent increase in renewals spending compared with the previous 18-month period ending June 2025, underscoring how Government, Council, and Watercare are working together to accelerate delivery.

Keeping Water Affordable

One of the key goals of the arrangement is to shield Auckland households from steep rises in water bills. By providing Watercare with additional finance, the programme enables infrastructure upgrades while keeping water charges lower than previously forecasted.

“This arrangement means Aucklanders can keep more money in their household budgets,” Watts explained. “That makes a real difference when families are juggling the cost of groceries, healthcare, and other essentials.”

Jobs and Opportunities for Local Businesses

The scale of the investment is expected to generate significant employment opportunities. While much of the work will be carried out by Watercare’s established contractors, at least $75 million worth of pipe replacement contracts will be put out to public tender before Christmas.

This will allow smaller businesses to compete for work alongside Watercare’s approved suppliers, broadening opportunities for local companies and supporting regional economic growth.

“I’m pleased to see that my conversations with Watercare, combined with the introduction of economic regulation, are positively impacting the level of infrastructure investment,” Watts said. “This is a good outcome that supports growth, creates jobs, and delivers resilient infrastructure.”

Building Resilience for the Future

The investment is not just about fixing today’s issues but also preparing Auckland’s water network for long-term resilience. With population growth and climate change putting increasing pressure on urban infrastructure, modernisation is critical to ensuring reliable service delivery for decades to come.

“The project reflects our shared commitment to faster delivery, stronger regional economies, and improved water services for Aucklanders,” Watts added. “I look forward to further positive developments as we continue to monitor Watercare’s performance.”