Investigations into a potential joint organisation to deliver water services across the Rotorua, Whakatāne, Kawerau and Ōpōtiki districts have now been completed as part of the Government's Local Water Done Well reforms.
A working group made up of mayors and elected members from the four councils received a final technical report on 17 August outlining the assessments and analysis undertaken over the past eight months for a joint Water Services Council Controlled Organisation (WSCCO).
Councils will now consider what approach would best serve their communities and work through the final structure of any future organisation. Each council will determine its preferred option and, where required, undertake consultation or other forms of community engagement before making a final decision.
Following community consultation in 2025, the four councils committed to investigating the merits of a potential shared approach to delivering water services.
While each district has its own unique needs and priorities, there is a shared commitment to delivering safe, reliable and affordable water services that meet community expectations, comply with Government requirements, and support the long-term sustainability of infrastructure.
Following a collaborative investigation process that demonstrated a strong commitment to navigating a complex and evolving legislative and regulatory environment, the four councils are expected to decide next month on their preferred options and decision timeframes.
The report received, prepared by consultants Martin Jenkins, tested whether a joint arrangement could deliver better outcomes for communities over a 30-year period than continuing with the current in-house delivery of drinking water, wastewater and stormwater services, by the four councils.
Investigations found that an asset-owning WSCCO offered the stronger potential to deliver against agreed objectives, with in-house delivery meeting current requirements but coming under growing pressure over time.
The report also provides an overview of current service delivery across the four districts, including water assets and infrastructure, Treaty settlement obligations, iwi and hapū engagement, asset condition and renewals, planned investment, compliance requirements, financial positions, and key risks and challenges.
Three delivery models were assessed:
- An internal business unit (the current delivery model) would meet statutory requirements over the next 10 years, but faces significant long-term sustainability challenges.
- An asset-owning WSCCO has potential for strong future benefits and detailed financial comparisons and development of possible governance and representation mechanisms will allow fuller consideration of the relative advantages and disadvantages of this option.
- A service delivery only WSCCO was considered unlikely to be a fit-for-purpose or sustainable long-term solution due to additional complexity it would introduce.
The assessment considered the extent to which each model would:
- Deliver efficient and financially sustainable water services now and into the future.
- Protect and promote public health and the environment while meeting regulatory requirements.
- Ensure water services are resilient to natural hazards, seismic risk and climate change.
- Support integrated, efficient and equitable infrastructure planning.
- Provide affordable, fit-for-purpose services that meet community needs and expectations.
- Value and honour council obligations to hapū and iwi.
- Support the ongoing viability and effectiveness of remaining council operations.
You can read the full report received by the Working Group here: ECM_23096606_v1_Final report - for endorsement - 17 August 2026
