Five councils firming up as water services partners

Thursday, 5 June 2025

Horowhenua deputy mayor David Allan says it’s a no-brainer to be part of a larger water services entity.

Councils in the Manawatū-Whanganui region are getting closer to “critical mass” to deliver water services, as another council voted to join a growing group that could soon be five.

Councils across the country are deciding what neighbours to work with to deliver water services for the Local Water Done Well reforms.

It had looked like Horowhenua District Council would be joining Palmerston North City Council, while Manawatū and Kāpiti Coast district councils had both opted to go it alone.

Separately, the Rangitīkei, Ruapehu and Whanganui had decided to work together. But those three could all change tack now the option of joining Palmerston North and Horowhenua had emerged.

Advice to councils had been that having more than 50,000 water connections in a larger entity should mean councils had greater savings through economies of scale and they could borrow more.

The five councils together would have more than 70,000 connections.

Horowhenua councillors voted unanimously on Wednesday for the council to be part of a council-controlled water services organisation with the Palmerston North and Rangitīkei councils, while also being open to working with the Ruapehu and Whanganui councils, if those councils were willing.

The Horowhenua District Council wants to work with more partners to deliver its water services.

Palmerston North City Council also resolved on Wednesday that its preference was work with Horowhenua and Rangitīkei, and to continue to work with Ruapehu and Whanganui should they decide to join.

Rangitīkei District Council last month decided to work with the larger group of councils, while Whanganui and Ruapehu district councils would decide their future at the end of the month.

Horowhenua mayor Bernie Wanden said ratepayers would be better off if the council reached the larger scale.

“We need to try get past that short-term view of two to three years and look at it in five to 10 and longer.”

He said the prospect of having a four-or-five council entity was more attractive over time compared with just two councils

“It feels like the political dancing around the forest, sometimes it takes a while for people to see the sunlight through the trees.”

Deputy mayor David Allan said the larger entity was a no-brainer.

“When it comes to this we do need critical mass. The key principles at the heart of this, wherever we live in New Zealand, we need access to clean and safe drinking water and effective disposal of waste water.

“This is about thinking beyond being parochial and understanding for this to happen, we need critical mass.

“We’ve done the numbers, looked at the modelling. We do need to coalesce with as many councils as possible.”

A Horowhenua District Council statement said if the five councils formed a joint organisation, it could save more than $300 million over 30 years.

It was projected to save the average Horowhenua household between $195 and $300 per year by 2027-28.

Councils needed to present a water services plant to the Government by September 3.