Legislative Stages of LWDW

LWDW is being implemented through three key legislative stages:

Stage 1: Repeal of Previous Water Services Legislation

Completed: February 2024

In February 2024, the Government introduced and passed the Water Services Acts Repeal Act. This Act repealed three key pieces of legislation:

• Water Services Entities Act 2022
• Water Services Legislation Act 2023
• Water Services Economic Efficiency and Consumer Protection Act 2023

Key Outcomes:

• The repeal restored local councils' ownership and control of water services, and with it, the responsibility for service delivery.
• Previous local government legislation related to water services was reinstated.
• Transitional support options were introduced to assist councils in completing their long-term plans according to local needs.
• Transitional provisions allow councils to defer reviewing their water services bylaws under the Local Government Act 2002.

Stage 2: Establish Framework & Preliminary Arrangements for New Water Entities

Enacted: 2 September 2024

The Local Government (Water Services Preliminary Arrangements) Act 2024 sets up the foundational framework for Local Water Done Well and lays out the preliminary steps for the new water services system.

Key Provisions:

• Water Services Delivery Plans (WSDP): Councils must develop these by 3 September 2025, outlining future water services delivery arrangements.
• Plans must include detailed information about water services operations, assets, revenue, expenditure, pricing, and future capital expenditure.
• Councils must also include necessary financing arrangements in their Plans to meet economic regulations.
• Streamlined consultation and decision-making processes for setting up future water services delivery systems are included.
• Interim changes to the Water Services Act ensure that when Taumata Arowai sets wastewater standards, the Te Mana o te Wai hierarchy of obligations (from the National Policy Statement for Freshwater Management) will not apply.
• Note: As part of developing a WSDP councils need to consult on their preferred Water Services Delivery Model for providing water services. This consultation will be in early 2025 (February-March).

Stage 3: Establish Enduring Settings

Introduced to Parliament December 2024 – Expected to be enacted mid-2025

In December 2024, the Government introduced a third bill, the Local Government Water Services Bill, to establish long-term settings for water services. It will apply to all local government water services providers.

Key Features:

• Three core documents: (1.) Statement of Expectations (2.) Water Services Strategy (3.) Water Services Annual Report.
• Introduction of new water services delivery models for councils to choose from, including organisations that can be owned by councils and/or consumer trusts.
• Minimum requirements for local government water services providers.
• Protection against privatisation.
• A new economic regulation regime, implemented by the Commerce Commission, to ensure the financial sustainability of water services.
  • This will ensure sufficient revenue recovery, efficient investment, and maintenance to deliver quality water services.
  • Commission will ensure water services revenue is spent appropriately and set revenue thresholds for infrastructure investment.
  • Minister of Commerce can introduce quality or price-quality regulation if needed for specific providers.
  • Commission, with experience in utility sectors, will manage economic regulation and consumer protection.
• Reforms to improve the efficiency and effectiveness of the drinking water regulatory regime, overseen by the Water Services Authority -Taumata Arowai.
• Changes to Te Mana o te Wai, (national policy statement on freshwater) affecting how it applies to drinking water suppliers, wastewater, and storm water networks.
• A new approach to urban storm water management, including reforms to manage overland flow paths and urban watercourses.
• Revised wastewater environmental performance standards and the introduction of national engineering design standards to ensure consistency across water infrastructure projects.