Local water done well
Our Water, Our Future – What is Local Water Done Well.
Far North District Council, alongside councils across Aotearoa, is considering how best to manage water services under the Government’s new Local Water Done Well policy.
Local Water Done Well replaces the previous Governments Three Waters Reform Programme and places the future of drinking water, wastewater, and stormwater services back in the hands of local councils and their communities. The focus is on ensuring that future water service delivery is financially sustainable, meets regulatory standards, and supports growth and development.
What does this mean for the Far North?
We have a proud history of working with our communities to deliver water services, but like many councils across the country, we face the challenge of ageing infrastructure, rising costs, and increasing regulatory requirements.
Under Local Water Done Well, councils must demonstrate how they will:
- Meet all relevant economic, environmental and water-quality regulatory requirements
- Ensure the financial sustainability of water services
- Support housing and urban growth aligned with the Long Term Plans
- Explore collaboration opportunities with neighbouring councils
The decision to form a Regional Water Services CCO
During the 31 July meeting, Far North District Council came to the formal decision to work towards forming a Water Services Council Controlled Organisation (CCO) with Kaipara and Whangārei district councils.
The new CCO will help to ensure all of Northland could meet the increased compliance requirements under Local Water Done Well, and address growth across the region, while ensuring charges are fair for the residents of each district.
All three councils will now work together to prepare a Water Services Delivery Plan (WSDP), which must be submitted to Central Government by 3 September 2025.
On acceptance of the WSDP, the three councils will start collaborating to establish the CCO. There is a high degree of complexity to develop and integrate such a large business. The company will have its own staff, office locations, IT & Finance systems and technical capabilities. The CCO is expected to be fully operational from July 2027.
It is expected that, during its first three years, the CCO would be able to identify and prioritise some of the critical issues each district is facing and then be in a position to review its approach to finances and water charges.
Decision Making Process
To help determine the most suitable service delivery model for the Far North, the Council carried out community consultation and jointly established a Regional Elected Member Working Group.
Consultation with the community
Between 4 April to 4 May 2025, we sought feedback from the community on two main options:
Te pēke | The bag
represents the strengthened in-house model, where services stay with the council, tightly managed and locally controlled.
Te kete | The basket
represents the three-council water services organisation, where resources and responsibility are shared for greater efficiency and wider collaboration with Kaipara and Whangārei district councils.
We received 116 submissions, ranging from short comments to detailed, multi-page responses.
In summary 68% of respondents favoured keeping water services in-house. Those favouring an in-house model generally wanted to keep decision making local, whereas those wanting a regional Council Controlled Organisation (CCO) cited ‘economies of scale’ as their primary reason.
Northland Local Water Done Well Working Group
Recognising the shared challenges across the region, the Far North, Kaipara, and Whangārei District Councils have established the Northland Water Services Elected Member Working Group. Chaired by Whangārei Mayor Vince Cocurullo, the group includes three elected members from each council. The Far North is represented by Kahika Moko Tepania, Councillor Ann Court, and Councillor John Vujcich, and is supported by council staff, representatives from the Department of Internal Affairs, and an independent technical advisor.
The Working Group met for the first time on 26 May 2025. Its purpose is to explore collaborative solutions—such as shared services or a regional Council-Controlled Organisation (CCO)—and to make recommendations to each council.
On 7 July 2025, the group unanimously recommended the establishment of a single regional CCO for all of Northland, believing it would best serve the interests of the community.
Frequently asked questions
The Government has introduced a new system for managing drinking water, wastewater, and stormwater. This is now called ‘Local Water done Well’.
Under this system, councils keep ownership of water assets, but must now meet tougher financial, environmental, and safety standards.
Every council must submit a Water Services Delivery Plan by 3 September 2025, showing how it will meet these rules.
Whatever model is chosen, the goal is the same. We need safe, reliable, and affordable water services that are well-managed and built to last.
Stormwater is closely linked to other council systems – roads, parks, and open spaces. Roads help channel rainfall, and green areas absorb water. Both play a role in managing runoff and the potential for flooding.
Far North District Council is committed to effective stormwater management and addressing climate change impacts. We are developing a stormwater strategy and updated flood models to guide long-term planning and investment. This includes work to improve drainage, clear key infrastructure, and increase the resilience of our urban areas.
Like many councils, Far North District Council faces growing pressure to improve the way we deliver water services. Spread-out communities, ageing pipes, and rising costs make providing reliable and affordable services harder.
Our district covers a vast area with a small population. This means it costs more to build, run, and maintain water infrastructure than it does in bigger cities. Some of our key treatment plants and networks are also overdue for major upgrades.
On top of this, climate change is already making its mark. Droughts and severe weather events are placing extra strain on water, wastewater, and stormwater systems. The council also carries a backlog of work due to past underinvestment.
Despite the challenges, the council is in a relatively strong financial position. Our debt levels are low, and we already separate most water revenue from other council funds, which is a key requirement under the new system.
The work has already started. We are improving asset management, investment planning, and how we meet compliance standards. This will continue, no matter which model we choose.
The Far North is expected to grow by around 12,000 people by 2054, especially in the Bay of Islands - Whangaroa Ward. The council is preparing now to make sure water services keep pace with this growth.
Across Aotearoa, ageing infrastructure, climate change, and past underinvestment have left many water systems stretched. Inconsistent service between communities and growing populations adds even more pressure.
At the same time, global standards for water quality are rising. New Zealand must catch up. Local Water Done Well aims to keep water in public hands while improving funding, accountability, and environmental protection. The council must now prove it can maintain safe, reliable, and sustainable services into the future.
This is yet to be confirmed; however, legislation provides five options for how shares can be allocated across councils. These include:
- Population allocation: Shares are allocated based on the proportionate population of its service area and updated as these figures change over time.
- Connections allocation: Shares are allocated based on the number of water connections and updated as these figures change over time.
- Net asset allocation: Shares are allocated based on the total net value of the council’s assets transferred to the CCO at the time of establishment.
- Equal proportion allocation: Shares are allocated to each council equally.
- Combination: Shares are allocated through a combination of the methods above. For example, 50% of the shares could be allocated based on number of water connections and 50% based on net asset value.
There would not be a ‘lead’ council, however legislation requires a secretariat role which could be fulfilled by a participating council, or the CCO itself.
The secretariat role is for the transition period and is expected to be WDC.
We are committed to supporting every impacted staff member through this transition if it goes ahead.
There would still be approximately two years before the CCO is established and a transition period after this, so we would use this time work through options for impacted council staff.
This proposal is limited to amalgamating drinking water and wastewater services across Northland.