As Local Water Done Well rolls out, many councils are moving their water services into a new kind of organisation called a water services CCO. New entities such as Waikato Waters, Tiaki Wai Metro Water and Northland Water are appearing across the country. This guide explains what a water services CCO is, how it works and what it means for the people it serves.
What CCO stands for
CCO stands for council-controlled organisation. It is an organisation that is owned by a council, or by several councils together, but runs at arm’s length from them. It has its own board of directors and its own management team, and it makes its own day-to-day operational decisions while remaining accountable to the councils that own it.
A water services CCO is simply a CCO set up specifically to deliver water services. Its focus is drinking water and wastewater. In most cases, stormwater stays with the council rather than moving across, because how stormwater is managed is closely tied to roads, parks and land use.
How it is owned and governed
A water services CCO can be owned by a single council or jointly by a group of councils. Where several councils are involved, they typically appoint a shareholder representative group, which sets expectations and monitors performance on behalf of the owning councils.
The board itself is made up of independent, professional directors chosen for their skills in areas such as infrastructure, finance and governance. The board runs the organisation, while the councils, as owners, set the broad direction through a statement of expectations.
Why councils are setting them up
There are practical reasons councils are choosing this model under Local Water Done Well.
Borrowing capacity. A water services CCO can borrow against its revenue at higher levels than a council can. This helps fund the large infrastructure investment that water services need.
Focus. A dedicated organisation concentrates entirely on water, rather than competing for attention and funding against every other council service.
Scale. When several councils combine their water services into one CCO, they can share systems, expertise and costs across a larger base.
What it means for your bill
This is the part that affects households most directly. When water services move into a CCO, the cost of water is usually separated out from general rates and charged on its own. You will often see this happen in stages, first as a separate line on your existing rates bill, and later as a charge from the water organisation itself.
It is worth being clear-eyed about one consequence. Because a CCO sets its own water charges, those charges can rise independently of any limit placed on council rates. The money still comes from the same household, but it is recovered through a different channel. That is a point worth watching as the new entities begin operating.
