Marlborough Waters Limited FAQs

Marlborough Waters Limited is Marlborough’s new dedicated water services organisation. In July 2025, Marlborough District Council decided to establish Marlborough Waters to take responsibility for providing drinking water, wastewater, and stormwater services across the district, including Blenheim, Picton, Havelock, Seddon, Renwick and some rural communities.

We are currently in an establishment period - Marlborough Waters is being set up, with the new organisation officially beginning it operations on 1 July 2027. Until then, water services continue to be delivered by Council as normal.

The Government's Local Water Done Well legislation requires all councils to establish new water services delivery arrangements - there is no option to simply continue as before without meeting the new legislative requirements.

Establishing Marlborough Waters will enable a singular focus on the delivery of water infrastructure. This will ensure that that region is better positioned to attract the specialist staff needed in the future to meet future water services and infrastructure challenges.

Marlborough's water infrastructure faces significant challenges that require a focused, long-term response:

• Many pipes are approaching mid-life, and some Blenheim and Picton stormwater assets have less than 10 years of expected life remaining.
• Multiple water supplies need upgrades to meet stricter national drinking water standards.
• Around $410 million of investment is needed over the next 10 years.
• A dedicated water services organisation can attract specialist staff and access cheaper funding than a council.

Through Marlborough Waters, costs can be spread over a longer period through borrowing, leading to lower water charges when compared to retaining water services internally at Council. By removing three waters debt from Council’s books, Council will have an improved ability to deliver its other key activities and responsibilities to support the Marlborough community.

No. Marlborough Waters will be 100% owned by Marlborough District Council. It will remain in public ownership and cannot be sold.

Privatisation would require a change to legislation - it is simply not on the table. Council ownership is protected in the organisation's founding documents, and any revenue will be reinvested into Marlborough's water network, not paid out to private shareholders.

Council is the sole shareholder of Marlborough Waters; councillors are involved in appointing the board and setting the strategic direction for the company. The day-to-day management of water services sits with Marlborough Waters, who must give effect to Council strategic direction and ensure that water services meet all regulatory requirements.

The board itself must consist of independent directors appointed based on their professional competency to deliver water services. Elected members and council employees cannot sit on the board - this is a requirement of the Local Water Done Well legislation and is designed to ensure the organisation is run by water services experts.

Water organisations will be accountable for their performance to their council shareholder, in this case Marlborough District Council. The Council as the shareholder holds accountabilities levers including appointing or removing the Board of the water organisation and monitoring their performance. MDC are accountable to the communities who elect them, and represent their interests through documents like the constitution, and the statement of expectations of the water organisation.

Local Water Done Well (LWDW) is the Government's national framework for how drinking water, wastewater, and stormwater services are delivered by local councils across New Zealand. It was established under the Local Government (Water Services Preliminary Arrangements) Act 2024.

Under LWDW, all councils must:

• Meet financial sustainability requirements, including ring-fencing water services costs from other council finances.
• Meet planning and reporting requirements,
• Comply with economic regulation and consumer protection requirements based on Part 4 of the Commerce Act.

Importantly, there is no 'do nothing' option. Even councils that keep services in-house must meet the new legislative requirements.

Local Water Done Well aims to deliver a locally led, financially sustainable, regulated and standards-driven water services system that:

• Keeps assets locally owned
• Improves the ability to fund upgrades
• Ensures fair pricing
• Meets national water quality and performance standards
• Gives councils flexibility to choose the model that suits them

All councils were required to develop a Water Services Delivery Plan (WSDP) that assesses their water infrastructure, quantifies investment needs, and explains how they plan to finance and deliver water services. The plans demonstrate council's commitment to services that meet regulatory requirements, support growth and are financially sustainable.

Marlborough District Council’s WSDP was approved by the Department of Internal Affairs in December 2025.

Marlborough Waters is being established as a Water Services Council-Controlled Organisation (WSCCO) - a company owned by Marlborough District Council and through it by the community. As a WSCCO, Marlborough Waters is accountable to Council as its sole shareholder.

A Council-Controlled Organisation (CCO) is a company in which a local authority holds a majority ownership stake. CCOs are governed by the Companies Act and are subject to the accountability requirements of the Local Government Act. Other New Zealand councils have used the CCO model successfully to deliver services such as airports, ports, and utilities.

Marlborough Waters will be led by a professionally appointed board of independent directors, selected for their expertise and competency in areas relevant to running a water services organisation. The board chair and members will be confirmed following the formal appointment process. The board will hire a chief executive who will manage a dedicated management team. A large proportion of the staff will be specialist engineers and project managers who are trained and experienced in building and running water infrastructure such as drinking water treatment plans and water treatment systems.

We are currently in the establishment period - Marlborough Waters is being established and prepared, but Council is still responsible for delivering your water services. The period from now until July 2027 is about getting everything in place so the handover is seamless.

During this time, the focus is on setting up the organisation's structure, engaging with staff and the community, and ensuring continuity of service.

During the establishment period nothing will change. Council continues to deliver your water, wastewater, and stormwater services as it always has.

When Marlborough Waters officially starts operations in July 2027, the day-to-day experience of your water services is not expected to change. No service disruptions are planned, and the transition has been designed to be as seamless as possible for residents and businesses.

Marlborough Waters will provide municipal water, wastewater, and urban stormwater services across the Marlborough district.

One of the significant changes coming is a shift from rates-based charging to metered billing for water use. This means your water costs will be based on how much water you actually use, rather than on your property's land value. Properties in Havelock and Renwick are already on meters.

Metered billing is planned for Picton and Blenheim over the next few years.

Under metering, those who use less water pay less. It also encourages water conservation and makes the true cost of water more transparent by separating it from your general rates.

Water infrastructure investment is needed across Marlborough regardless of how services are delivered. The $410 million required over the next 10 years reflects the true cost of maintaining and improving our water network to meet modern standards and replace ageing parts of the network.

Further work is required to ensure that water charges are affordable but will enable necessary investment in water infrastructure. Before any water charges are adopted, they will be consulted on as part of the Water Services Strategy. We expect this to happen sometime in February/March 2027.

Marlborough Waters’ financial model means these increases can be spread over a long period through the organisation’s greater borrowing capacity, which helps to lower annual charges compared to what would be required if Council funded the work directly.

Metered billing also puts you in control of your costs; by managing your usage, you can manage your bill.

Marlborough Waters will be required to meet all national drinking water standards set by the Water Services Authority - Taumata Arowai. Improving water quality compliance across the district is one of the key drivers for the infrastructure investment programme.

Council is committed to meeting its partnership obligations with Marlborough’s iwi. Engagement includes direct discussions, hui and participation in partnership forums.

Council asked the public for their views on a water services organisation model in 2025. Council considered the public’s feedback before deciding that establishing Marlborough Waters was the best approach to meeting the district's long-term water needs under the new legislative framework.

Ongoing engagement with the community, including public meetings and regular updates, will continue in the future.

Marlborough's business community - particularly the viticulture and food processing sectors - relies heavily on consistent, high-quality water services. Marlborough Waters will be focused solely on drinking water, wastewater and storm water, meaning greater specialist expertise and more investment capacity to maintain the reliability and quality that businesses depend on.

Direct engagement with business associations and industry groups will be part of the ongoing communications programme.