Whanganui and Ruapehu councils approve water CCO

Whanganui District Council has voted to establish a two-council Water Services Council Controlled Organisation (WS-CCO) in partnership with Ruapehu District Council to manage drinking water, stormwater, and wastewater services. The decision, made on 15 July 2025, is part of the Government’s Local Water Done Well reforms, which replaced the previous Three Waters legislation after the 2023 general election. The new policy keeps water assets in local council ownership while introducing stricter financial, quality, and economic regulation overseen by the Commerce Commission.

The Department of Internal Affairs formally approved the joint Water Services Delivery Plan for both councils on 24 November 2025, following assessment by a panel including representatives from funding agencies and regulatory bodies. The plan covers around 25,000 water connections across both districts, with assets remaining in public ownership. Secretary for Local Government Paul James acknowledged the detail and effort both councils put into developing the plan, which was submitted before the 3 September 2025 deadline.

Under the Local Water Done Well framework, all councils must demonstrate how they will meet new standards for water quality and infrastructure investment while maintaining long-term financial sustainability. The legislation requires councils to ringfence water services funding and prohibits privatisation. For Whanganui and Ruapehu, the WS-CCO model provides a way to share resources and meet regulatory requirements while keeping decision-making local.

The new WS-CCO is planned to be operational by July 2027. Until then, both councils will continue managing their own water services independently. The Department of Internal Affairs will monitor progress quarterly, focusing particularly on pricing strategy and regulatory compliance projects. The government has also indicated an expectation that the WS-CCO will explore price harmonisation options and potential future collaboration with other entities to achieve economies of scale and address affordability challenges, particularly for Ruapehu District.

Read the full article at Whanganui District Council – News →

Source: Whanganui District Council – News. This summary was published by Input Ltd via amalgamation.nz, New Zealand’s central resource for local government amalgamation news and council merger updates.

Founder of amalgamation.nz, New Zealand's definitive resource for local government amalgamation and council merger news. Built to track reform proposals, merger decisions, and restructuring updates across all 78 NZ councils in real time. Part of Input Ltd's work supporting public sector organisations through digital transformation and organisational change.

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