What is Waikato Water Done Well?

Tuesday, 25 March 2025

Waipā District Council chief executive Steph O'Sullivan is chairperson of the Waikato Water Done Well chief executive working group and is at the forefront of the proposed council-controlled organisation.

First it was Three Waters, now it’s Local Water Done Well, but whatever happens between now and September 3, water services in the Waikato will never be the same.

In the coming weeks and months, about 200,000 Waikato residents will get to have their say on the draft Waikato Water Done Well (WWDW) proposal.

Last week, the Waipā District Council was the first council in Waikato, and perhaps in New Zealand, to approve consultation on the Government mandated Local Water Done Well legislation.

The proposed Waikato Water Done Well time-line. All councils in New Zealand must have submitted their plan to the Government for approval by September 3.

WWDW would see seven councils - Waipā, Matamata-Piako, Hauraki, Ōtorohanga, Waitomo, South Waikato and Taupō - form a council-controlled organisation (CCO) which will own, manage and maintain those councils’ drinking and wastewater infrastructure.

Councils will transfer any debt for these services to the new CCO, but will continue to maintain and operate their own stormwater services.

The consultation document states those seven councils serve 205,000 people, 41% of the region’s population, and 40% of the region’s water and wastewater connections.

Hamilton City and Waikato District councils are consulting on a proposal to form a separate CCO, but all councils must submit their plans for Government approval by September 3.

Waipā District Council has around $230m of debt associated with water and its delivery to residents. That debt would be swept up by the proposed council-controlled organisation.

Leading the WWDW charge is Waipā District Council chief executive Steph O’Sullivan who is chairperson of a chief executives’ working group at the forefront of the proposal.

She said many questions would be answered after the initial consultation process when they’d know exactly who was in and who was out but once established, WWDW would be the largest collective of rural and provincial councils delivering water services under the Government’s Local Water Done Well policy.

“The CCO will have an independent board of directors, appointed by shareholding councils, and be required to operate under the legislation and regulatory framework set out by the Government.”

She said the draft legislation restricts both the board and the executive from being elected members or employees of any shareholding council, and shares will be based on the number of water connections in each district.

Thames-Coromandel mayor Len Salt said his council was keeping its options open and decided not to join Waikato Water Done Well.

“Staff have had uncertainty of waters reform in their lives for more than four years – certainty once the final decisions have been made by councils will be welcomed.

“WWDW will enhance our ability to retain and attract highly skilled waters staff, and provide a solid pipeline of work for civil construction contractors.

“This certainty of investment allows them to invest in both people and plant.”

As for where it will based, that will be decided when the new CCO is up and running.

“Waikato Water Done Well has people, place and environment at its heart and we saw it as the best fit for Waipā – it was the most affordable option but also allows us to collaborate with the other rural and provincial councils who are facing similar issues to us.

“These include ageing infrastructure, population growth, rising costs, new regulations and limited funding options.”

The next step for all seven councils is public consultation but in the meantime, O’Sullivan said a transition plan is being developed.

“This will look at what is needed for Day 0 – the day the entity is stood up – and then beyond that to ensure the CCO has in place the systems and processes needed for it to take over the water activities of the first councils.”

That transition will occur from June 30, 2026.

Notable for its absence is the Thames-Coromandel District Council (TCDC), which is exploring two options - to go it alone, or to join another asset-owning water organisation.

Late last year the TCDC decided not to join WWDW, but would “explore opportunities for working arrangements, where possible, with Hauraki District Council as well as opportunities with Hamilton City Council and Tauranga City Council for a potential joint council-controlled organisation”, mayor Len Salt said.

“Our independent review shows us we are in a relatively good position with reasonable assets and lower relative debt compared to some other councils in New Zealand.”