Regional council shake-up: What you need to know

Thursday, 27 November 2025

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EXPLAINER: Major reforms to regional councils mark what the Government calls the biggest shake‑up to local government in decades.

Under a two‑stage proposal, mayors would take the reins of regional councils, with the aim of merging services, improving efficiency and driving down rates through Government‑approved plans. The changes were announced on Tuesday - here’s what you need to know.

What’s the status quo?

Before we get ahead of ourselves, let’s start with the basics.

There are three types of councils; regional, territorial and unitary councils.

They make up 78 councils across the country - 11 regional, 67 territorial and six unitary, each with a separate set of councillors who are elected once every three years.

Territorial authorities consist of city councils and district councils. City councils serve predominantly urban areas, while district councils cover a mix of both urban and rural.

A unitary authority operates as an amalgamated council, with the responsibilities of both territorial authorities and regional councils.

So what exactly do regional councils do?

Formed in 1989 by the then Labour Government, regional councils were established to increase efficiency, with 850 local bodies consolidated into 86 multi-purpose local authorities.

As the name suggests, regional councils have a regional focus. They tend to focus on the big picture, managing the country’s natural resources - the land, the air, the water, while local councils focus more on individuals and property rights.

Where local councils are responsible for services such as roads, sewerage, libraries, parks and town planning, regional councils focus on environment management, biosecurity, flood protection, regional parks, public transport and water supply.

Regional councils adhere to various acts of Parliament such as the Local Government Act and the Resource Management Act.

There are 131 regional councillors - of which the pay varies depending on the area. For the chair, the salary ranges from $100,238 in the West Coast to $186,660 in Canterbury. For councillors, it ranges from $38,485 to $74,107.

So what is changing?

The Government is overhauling local government as it’s been known for the past three decades.

Under a two-step reform, regional councils will be replaced by Combined Territorial Boards (CTB), where existing mayors from territorial and unitary councils will take on the responsibilities traditionally handled by regional councils.

While the functions of regional councils will continue, the role of regional councillors will disappear.

Within two years of the reforms being in place, councils are to come up with a “regional reorganisation plan” to merge services where possible and drive down rates.

The plan would be set against criteria that supports national priorities such as housing and infrastructure, better service delivery, financial sustainability and upholding Treaty settlement commitments. The Local Government Minister is to give it the final green tick.

Options for merging services include having one council do all the back-office functions, having one council-owned organisation take charge of services for the whole region or, the $100 question, will councils decide to amalgamate and form super city unitary authorities - like Auckland did in 2010?

Will all the mayors have the same power?

Though it’s up for public consultation, the preferred option is to have the mayor’s votes weighted to population somewhat, so mayors representing larger populations will hold more sway. Protections would be built in for small towns to make sure large city mayors do not dominate.

What will happen to buses, parks and rivers?

The CTB will assume all functions traditionally carried out by a regional council, so any changes to public transport or the environment would come from a change in leadership rather than a change in the system itself.

Will I still pay regional council rates?

Currently ratepayers pay separate rates bills for their local council and regional council (unless under a unitary council). This does not change.

Bishop argues cutting councillors and streamlining regional governance will drive down rates eventually but just how much is yet to be answered.

With a plan on rates capping expected to be brought to cabinet before Christmas, it might not be long to find out what this means for your wallet.

What’s this about Government stepping in?

There are options which would see the Government sitting alongside mayors on the board. Various levels of intervention include giving a Crown Commissioner veto power or the majority vote, but it’s up for the public to decide.

How will iwi be represented?

There is no mandatory iwi representation on the new boards, with mayors expected to represent voters from the Māori and general rolls.

“The Government’s view is that we don't agree with separate representation in that regard,” Bishop said at the announcement.

Te Pati Maori has labelled the changes a “power grab”.

Existing Treaty settlement commitments administered by regional councils would continue.

What is happening to the regional councillors I elected?

The role of regional councillor will be disestablished. Bishop gave no guarantee regional councillors would keep their job for the rest of the job, only saying “it’s an option”.

What’s all this talk about amalgamation?

Amalgamation can range from a supercity like Auckland through to shared services.

The Government has long signalled the desire to amalgamate councils, and on Tuesday Bishop acknowledged that the reforms would be most effective if councils ultimately merged.

Will my regional and district boundaries change at all?

The Government is not proposing any changes to boundaries, however isolated populations - districts which have populations in more than one district - will either be adopted by a different district or be given additional representation.

When is this all happening?

The proposal is not final and could shift ahead of final implementation in 2027, after the election, but has been agreed to by the Government.

The proposals will be under public consultation until February 20 next year.