Local Water Done Well

In December 2023 the Coalition Government announced a new direction for water services policy and legislation for drinking water, wastewater and stormwater, called Local Water Done Well. Councillors gave careful consideration to the submissions received from the public and, in almost all cases, concluded that concerns raised were addressed in the proposed new delivery model. The policy provides for councils to determine how their water services are delivered in future, with an emphasis on meeting economic, environmental and water quality regulatory requirements. The Local Government (Water Services Preliminary Arrangements) Act and the Local Government (Water Services) Bill set out the various arrangements and requirements on councils and water services providers.

Councils were given the option of choosing one of five service delivery models: a modified status quo (in-house council department); a single council controlled organisation (CCO); a joint CCO with other councils, and two types of trusts.

On 15 April 2025 Councillors decided to support a preferred option: establishing a Council-owned water services organisation (CCO). A public consultation process took place from 24 April to 26 May, which included a questionnaire and consultation document explaining the background and options. Fouty-four submissions were received.

On 7 July 2025, Councillors approved the establishment of a new water services organisation (WSO) for Marlborough. In a media release, Mayor Nadine Taylor said Council had decided to take a once-in-a-generation opportunity to do things differently to build better three waters infrastructure and provide greater intergenerational equity, spreading the costs over the long term.

“Through the WSO, costs can be spread over a longer period of time through borrowing, leading to lower water charges when compared to retaining water services internally at Council. The WSO will have a singular focus on the delivery of water infrastructure and be better positioned to attract the specialist staff needed in the future. By removing three waters debt from Council’s books, Council will have an improved ability to deliver its other key activities and responsibilites to support the Marlborough community.”

The WSO will be incorporated from 1 July 2026 with a one year transition to full operations from 1 July 2027. Marlborough District Council will be its sole shareholder, appoint its board of directors and set its direction via a binding Statement of Expectations, holding it accountable to the people of Marlborough.

Council will also establish a water services governance and oversight committee for the transition, made up of the mayor, the three committee chairs and chief executive.