Whanganui District Council has voted to partner with Ruapehu District Council to establish a two-council Water Services Council Controlled Organisation (WS-CCO) to manage drinking water, stormwater, and wastewater services across both districts. 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 following the 2023 general election. The joint arrangement will serve approximately 25,000 water connections while keeping assets in public ownership.
The Department of Internal Affairs formally approved the joint Water Services Delivery Plan on 24 November 2025, following assessment by a panel that included representatives from funding agencies, the Commerce Commission, the Water Services Authority, and an independent observer. Secretary for Local Government Paul James acknowledged the considerable detail and effort both councils put into developing the plan. Both councils adopted the plan in August 2025 and submitted it ahead of the 3 September 2025 deadline set by central government.
The Local Water Done Well policy requires councils to demonstrate how they will meet new financial, quality, and economic standards while maintaining local control over water assets and decision-making. Unlike the previous Three Waters reforms, council water infrastructure assets will not be transferred to government-mandated entities. However, councils must comply with new rules for investment, borrowing, and pricing, and face greater regulatory scrutiny including a new economic regulation regime within the Commerce Commission. The reforms are expected to increase costs to end users compared to current projections.
The new WS-CCO is planned to be operational by July 2027. Until then, both Ruapehu District Council and Whanganui District Council will continue to manage their own water services independently. The Department of Internal Affairs will monitor progress quarterly from 2026, focusing 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.
