IAWAI’s first ever Water Services Strategy in final draft

Wednesday, 13 May 2026

Water charges are being finalised for Hamilton and Waikato residents (file photo).

Water bills for Hamilton and Waikato district residents are expected to go up by a median of $174 a year under a new entity.

IAWAI will take over drinking water and wastewater services from Hamilton City Council and Waikato District Council from July 1 2026.

The final draft of its first 10-year strategy is due to be adopted in June. The strategy attracted 125 public submissions - and prompted both councils and iwi to note affordability remains a key challenge.

However, the government-mandated IAWAI has big costs ahead, with a focus on massive infrastructure investment of $3.3 billion over a decade.

‘Delivering our first strategy in this timeline has been challenging but successful,’ IAWAI chief executive Peter Winder said.

Under the strategy, water charges for homes will effectively go up by a median of $174 a year from their last yearly total.

This is less than the increase projected by partner councils for 2026/27, IAWAI chief executive Peter Winder said.

“Minimising the impact of increased costs for water services is key to the establishment of IAWAI.”

“Delivering our first strategy in this timeline has been challenging but successful.’’

The organisation’s Water Services Strategy is a roadmap for managing water across Hamilton city and Waikato District, and minor tweaks were made after public feedback.

Proposed combined water and wastewater growth charges for non-residential developments will not be applied this year. Combined waters growth charges for new papakaainga housing will be waived in the first year, to enable IAWAI to further engage with marae, hapuu and iwi before the next year’s Water Services Strategy.

“This is our first Water Services Strategy, and the views of our community helped shape the final version,” Winder said. “We greatly appreciate the feedback from our partners and our communities, and many of the issues raised will assist with the development of IAWAI’s second WSS in 2026-2027.”

“There was almost 80% support for the ‘growth pays for growth’ approach across the submissions. The combined drinking water and waste-water growth charges, of $500 for a new dwelling and $250 for a new secondary minor dwelling – or ‘granny flat’ – will be applied as an ongoing annual charge for 25 years from the time building is complete.’’

Support for that topic was not unanimous, Winder acknowledged.

“The Board considered the issues raised and noted a further strategy is being delivered next year.’’

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A submission from Hamilton development company CPL was one in dissent, pointing out the risks with implementing development contributions, growth charges and financial contributions (which HCC just released for consultation).

“There is a real risk of double or even triple charging’’ for the same infrastructure, the submission said.

Another change made after seeing submissions was that proposed waters growth charges for non-residential developments will not be applied this year, IAWAI said.

“These charges will be developed further and re-considered as part of the next year’s Water Services Strategy. In the same vein, the combined waters growth charges for new papakaainga housing will be waived in the first year, to enable IAWAI to further engage with marae, hapuu and iwi before the next year’s Water Services Strategy.’’

The board also approved other amendments to the strategy to include more explicit references to Te Mana o te Wai and Te Mana o te Moana.

“We have also included reference to carbon emissions monitoring, delivered through shared service arrangements.”

From July 1, IAWAI customers in Hamilton and Waikato District will see separate IAWAI charges for water and wastewater service alongside their rates invoice.

The final draft WSS including setting the charges will come back to the board next month for formal approval.

IAWAI is jointly owned by HCC and Waikato District Council and submissions from both councils noted concerns around affordability.

Hamilton City Council wanted future iterations of the strategy to more explicitly define how affordability will be assessed, monitored, and communicated over time.

Similarly, Waikato District Council’s submission was generally supportive but acknowledges that affordability remains a “significant challenge’’ for communities.

Waikato-Tainui has equal representation on the IAWAI board as a key strategic partner, which was recognised in the strategy document.

“Waikato-Tainui expects that partnership will extend beyond consultation to include shared influence over priorities, investment decisions, and service delivery outcomes, consistent with mana whakahaere and the principles of Te Tiriti o Waitangi.

“This includes early and sustained iwi involvement in strategic planning, infrastructure development, environmental monitoring, and operational decision-making.’’

It also says affordability “must remain a central consideration’’.