Local Water Done Well - Central Otago

Our approach

As part of the new Local Water Done Well reforms, the Council is working on options about how to deliver water services in the future.

At the November 2024 meeting, the Council discussed the options for a Water Services Delivery Plan (WSDP), to be included in next year’s 2025-2034 Long-term Plan discussions.

The Council will seek public feedback on two of the following options:

• Status quo (must be one of the options presented) – set up water services as an in-house/internal business unit. Ownership remains within the council.
• Single Council – set up a Council Controlled Organisation (CCO) with CODC 100% shareholder as an independent water service company.
• Multi Council – set up a Council Controlled Organisation (owned by multiple councils in the southern region).

The council is also looking at the option of partnering with other councils in Otago-Southland as a regional approach to managing and delivering these water services.

Read more:Local Water Done Well: Councils call for regional collaboration - Central Otago District Council

We will be consulting on the best information we have at the time, and we may follow up with a later consultation with refined costings.

How we got here

The scrapping of the previous Labour government’s three waters reform in February this year was replaced by National’s Water Services Preliminary Arrangements Act 2024.

It sets out the requirements for councils to develop a delivery plan, which needs to include:

• Financial information demonstrating that the activity is financially sustainable no later than 2028
• Consultation with the public on their preferred option and at least one other option, including the status quo.
• Formally adoption before being submitted to the Department of Internal Affairs (DIA) by 3 September 2025.

Where we want to go

For many years, Local Government has been grappling with rising costs and the affordability of aging infrastructure. As a result, rates increased markedly across the country in the 2023-24 financial year.

A review of the situation has been encapsulated in a report Local Water Done Well by specialists in government and financial services Morrison Low. You can read the report HERE. And also, the Otago-Southland overview HERE.

It clearly demonstrates that without change, delivery of future water services and infrastructure investment will become progressively more unaffordable for a vast majority of ratepayers in the next decade.

The Government has announced new financial arrangements, which would enable council-controlled organisations (CCOs) to independently borrow up to 500% of their water revenue from the Local Government Funding Agency.

The Council wants the best outcome for residents and ratepayers, and to be able to deliver safe, compliant, high-quality, affordable water services.

It would also like to:

• Hear from the community
• Foster a spirit of collaboration
• Future-proof the council’s water services for its community
• Get it right.

We will be providing information as it comes to hand for this project.

To go to the top of our Water Services page click HERE.