Five Million Voices

Should councils be required to produce water service delivery plans while gaining streamlined options and new financing for managing their own drinking, waste, and stormwater services?

The bill establishes preliminary arrangements under the Government's "Local Water Done Well" policy, requiring councils to develop water service delivery plans and providing streamlined processes, Crown support, and financing options for delivering drinking-water, waste-water, and stormwater services. It also amends the Water Services Act and sets up a specific model for Auckland's Watercare.

⚡ Taken under urgency

Parliament advanced this bill under urgency (first reading) — moving it through faster than usual, with less time than normal for public submissions.

MPs’ arguments for and against the bill

Why support it
  • Supporters argued the bill keeps water services under council ownership and control, letting communities choose their own delivery arrangements rather than a single centralised model.
  • Supporters said new financing through the Local Government Funding Agency lets council-controlled water organisations borrow up to 500 percent of revenue at lower interest rates, easing infrastructure investment.
  • Supporters argued it delivers a financially independent model for Auckland's Watercare that reduces projected water bill increases while retaining council ownership.
Why oppose it
  • Opponents argued the Government understated the true cost by relying on councils' 10-year plans rather than 30-year projections of up to $185 billion, making the plan look more affordable than it is.
  • Opponents said credit rating agencies, which determine borrowing costs, had cast doubt on whether the approach would work.
  • Opponents argued the bill leaves councils reliant on rates without alternative funding tools, meaning ratepayers will continue to face increases.

These are claims MPs made in Parliament’s debate — not verified facts.

Full bill summary & link to official bill page

The Local Government (Water Services Preliminary Arrangements) Bill is the first stage of the "Local Water Done Well" approach to drinking water, wastewater and stormwater. It requires every council to prepare a Water Service Delivery Plan showing how it will run these services in a financially sustainable way, either alone or jointly with neighbours. It gives councils streamlined options for delivery, such as setting up council-controlled organisations or shared arrangements, provides new financing tools, and extends the Commerce Commission's economic oversight of the sector.

This bill delivers a coalition commitment and unwinds the previous government's Three Waters (Affordable Water) reforms, repealing related provisions. Supporters argue it keeps water assets in local ownership and control, avoids forced centralisation, and pushes councils toward long-term financial sustainability while retaining flexibility. Critics, including some parties and councils, warn that many small local models risk fragmentation and uneven service, point to limited consultation with iwi and hapū, and object to removing references such as Te Mana o te Wai and to potential tension with Treaty of Waitangi obligations.

See the Parliament.nz ↗ site for the full bill.

Oppose (No) Support (Yes)

Local Government (Water Services Preliminary Arrangements) Bill · Third Reading, 27 Aug 2024
Parliament voted 68–55 — it passed.