The Waitaki District Council’s revised water services delivery plan has received approval from the Department of Internal Affairs (DIA), enabling the transfer of services to the regional entity Southern Waters next year. The council announced the development earlier this week, describing it as a crucial advancement amid a decade of reform and uncertainty.

Mayor Mel Tavendale emphasized that the plan promises a more affordable and transparent future for residents. “This outcome is about putting the community first,” Tavendale said, highlighting that the plan offers households a clearer understanding of how water services will be delivered and funded. He also noted that the council can now plan more confidently for necessary infrastructure improvements in the district.

Local Government Minister Simon Watts called the approval a “milestone” for the Waitaki region and others facing similar challenges with water service affordability and reliability. Watts noted that transferring responsibilities to a regional organisation like Southern Waters allows for economies of scale, enhanced expertise, and improved access to funding. He added that around 75% of New Zealanders will soon receive water services through organisations created under the government’s Local Water Done Well reforms. Watts also acknowledged former Environment Minister Amy Adams, who was appointed as a Crown facilitator at $1,654 per day to assist Waitaki’s council in preparing the revised plan.

The transfer of staff, assets, and debt from the Waitaki District Council to Southern Waters is scheduled for July 1, 2024. The restructuring process will include consultations with affected employees. Southern Waters is a multi-district entity that also covers the Central Otago, Gore, and Clutha districts. Starting with the 2027-28 financial year, water charges will no longer appear on local rates bills; instead, residents will receive separate water invoices.

Council chief executive Alex Parmley described the move to Southern Waters as the most cost-effective approach to meeting legal requirements for water quality and upgrading aging infrastructure. The revised plan, unanimously approved by councillors last month, followed an earlier internal submission that was rejected by the DIA. The plan has been characterised as the best route to financial sustainability, with Southern Waters expected to deliver significantly lower costs compared to an in-house model.

Despite these projected savings, water charges in the Waitaki district are still expected to rise by 124% over the next decade, raising concerns about household affordability. Additional challenges remain in upgrading parts of the district’s water network to meet required standards prior to the transition.