Prime Minister Christopher Luxon and Local Government Minister Simeon Brown announce details of the legislation to repeal Labour’s Three Waters reforms.
Video / Mark Mitchell
Watercare has operated the district’s water, wastewater and stormwater services since October 2019 and has been treating Tuakau and Pōkeno’s water and wastewater since 2010.
This week, Watercare confirmed it would withdraw from its contract on June 30, 2026.
In a press release publicising Watercare’s withdrawal, the council said the “council will continue to deliver three waters services to the community once the contract ends”.
According to the press release, the council’s options for water services delivery could include going in-house, setting up a council-controlled organisation, or turning to another local authority or agency in central government or the private sector.
No preference for any of the options was indicated.
The council owns all of the water assets in the district.
Waikato District Council chief executive Gavin Ion said the council was disappointed the district-wide contract would end in 2026 but understood Watercare’s position.
“The combination of our local knowledge and Watercare’s expertise has worked well and the arrangement has provided learnings and information which will be used to take both organisations forward.”
The news comes after the council decided to switch from a Long-Term Plan (LTP) process to an enhanced Annual Plan for 2024-25.
Waikato District Council’s contracted water services operator Watercare has confirmed that it will withdraw from its contract in 2026.
Under the Government’s Water Service Act’s Repeal Act, the council would need to implement “Local Water Done Well” in a two-stage approach.
The initial bill, to be passed by mid-2024, establishes the framework and transitional arrangements for the new water services system.
A second bill would provide for the long-term replacement regime and would be introduced in December 2024, and enacted by mid-2025.
One option in the Government’s legislation is for councils to defer their LTP by 12 months and prepare an ‘enhanced annual plan’ for the 2024/25 financial year.
The LTP would then become a nine-year plan running from 2025 to 2034.
“Uncertainty in the waters area, including legislation still to come, is one of the reasons for this decision,” Ion said.
“The future of our relationship with Watercare is just one of those uncertainties that provide reason to defer our LTP until 2025.”
Ion said the council will now start the process of determining the future of water services provision in the district beyond June 2026.
The Local Government Act requires councils to review any services they deliver, within two years of a significant contract ending.
Ion said the council’s review would consider options to deliver water services in the future and would assist in decision-making while the council transitioned out of the Watercare contract.
