IAWAI growth assumptions questioned as waters company prepares strategy
Monday, 13 April 2026
A new water agency is facing early scrutiny over how it plans to pay its way.
IAWAI is a new Government-mandated water organisation for Hamilton City and Waikato District and from July 1 becomes responsible for all drinking and wastewater in both areas.
Its new Water Services Strategy explains how it intends to do this, and public submissions on the strategy recently closed.
Although they’re not due to be revealed to the public until next month, submissions shown to the Waikato Times show concerns with IAWAI’s financial sustainability, and in particular “questionable growth data’’, and the ”premature’’ introduction of new growth charges, which might be based on “flawed’’ growth estimates.
A submission from former realtor Colin Jones argues that IAWAI’s growth modelling and subsequent forecasting to take in 14% of its revenue from Development Contributions is unreliable, noting that Hamilton City recently experienced a $350 million shortfall in development contribution revenue versus budget. Jones said central city apartment permits averaged only 21 annually despite projections “of thousands’’. He recommends IAWAI halt major projects until a full review of background data is confirmed as accurate.
IAWAI boss Peter Winder said 67 submissions were received and it was great to have a “diverse range of people and organisations take the time to give us their thoughts”. The feedback is being collated.
Another concerned party was civil engineer Bill Mitchelmore, who opposes the introduction of growth charges before IAWAI adopts its own unified Development Contribution (DC) Policy. He argues there is also a lack of evidence to support the proposed $200–$300 per unit charges suggested by a separate Financial Contributions framework (payable annually by home-owners after any required DCs have been paid by developers).
Mitchelmore expresses concern over 'DC revenue leakage' inherited from Hamilton City Council's design. Crucially, he rejects the proposal to delay asset depreciation, warning that failing to recover costs immediately will lead to an ongoing under-recovery of replacement funds and excessive debt.
Hamilton City resident Geoff Kreegher labels the proposed growth charges as 'premature' and 'poorly justified,' potentially shifting $46.3 million in costs to new builds without a demonstrated need.
Chartwell-based Ray Mudford also challenges IAWAI’s 22% growth assumption.
Mudford advocates for distributed processing through modern micro-sewage plants and better water storage at council facilities. He calls for a comprehensive investigation into baseline growth drivers and recommends suspending all capital projects until this investigation is completed.
IAWAI chief executive Peter Winder said this was the first time the organisation had presented a strategy to the community.
“It is great to see the diverse range of people and organisations take the time to give us their thoughts.
“These are significant decisions for the future of our region and the whole IAWAI team is committed to delivering water services that meet the needs of our people and rohe, now and in the future.”
The draft strategy had been developed with the company’s two shareholders, Hamilton City Council and Waikato District Council, as well as with support from its iwi partner Waikato-Tainui.
Public consultation in March and April brought in 67 submissions, and also covered IAWAI’s Significance and Engagement Policy and Waiver Policy.
Submissions received would feed into a staff report going to a May 7 meeting, when the board will decide whether to adopt the strategy and policies.
“Submissions are being collated and reviewed to develop a feedback insights document for the board, along with all submissions. These will be made available with the public agenda and reports for the board meeting,” he said.