Local Water Done Well

What is Local Water Done Well?

Local Water Done Well is intended to ensure water services remain financially sustainable, high-quality, and well-managed for the future. Council submitted their Water Service Delivery Plan (WSDP) in September 2025 to demonstrate how we proposed to meet these requirements. The WSDP was approved by the Secretary for Local Government.

Council intends to establish a joint Water Organisation with Tauranga City Council from 1 July 2027.

Both councils have undertaken due diligence on a range of matters as set out in the Summary Plan.

Key steps

• Before 2 April 2026: due diligence. Elected members considered the outcomes of extensive analysis and due diligence undertaken over recent months by Councils, tangata whenua partners, and council staff. This included work on governance and shareholding arrangements, financial sustainability, service delivery, and how a joint water entity would operate in practice ahead of any final decision.
• 24 March 2026 (formal Council meeting): both Councils met to consider the outcomes of the due diligence work and confirm the preferred pathway ahead of a final decision. This included considering the commercial terms and estimated costs remaining with council if the establishment of the Water Organisation proceeds. You can read the media release following this meeting here: https://www.westernbay.govt.nz/council/news-and-up...
• 2 April 2026 (formal Council meeting): both councils met to consider whether to proceed with establishing a joint Water Organisation.
• April 2026 and beyond: The new joint Water Organisation was established to deliver water services from 1 July 2027.

Establishment Chief Executive

Kevin Lavery has been appointed to lead the establishment and transition phase of the organisation, with a clear focus on ensuring it is set up to operate effectively from day one - for staff, communities, and the Councils it will serve. He will begin in the role on 13 April 2026.

You can read more here: Kevin Lavery appointed Establishment CE of joint Water Organisation - Western Bay of Plenty District Council

A new way to govern

We will be looking at how the governance framework might be shaped to ensure the new multi-council WO is set up for success. This will include the necessary skills in the Board of Directors.

Council have undertaken to enter into a phase of due diligence. If this phase confirms a multi-council WO is mutually beneficial and viable, appointments will begin once all the necessary transition steps have been taken to set it up.

Shareholding arrangements

Through a joint council document called the Statement of Expectations, the new organisation would be responsible for delivering water services. The new Board of Directors would be focused on achieving the outcomes outlined in this statement.

Under the proposed model, councils would set up the multi-council WO to operate as a separate organisation from the shareholding councils. The new organisation would be responsible for delivering water services and Councils would provide strategic direction, through the Statement of Expectations.

The shareholding arrangements will be negotiated and agreed upon as part of the transition and establishment process, if due diligence confirms the multi-council WO is a mutually beneficial option for both councils.

Why change is necessary

Staying with the current model is not an option - we must transition to a more financially viable structure to ensure we can keep delivering water services at the lowest possible cost, while maintaining local decision-making and public ownership.

• Western Bay’s water services are well-managed today, but our current model does not meet the Government’s new financial sustainability rules. The reality is, even if we wanted to, we don’t have the financial capacity to continue operating as we are.
• To secure safe, high-quality, and affordable water services for our communities, we must adopt a financially sustainable and legally compliant delivery model.

The challenges we face

• New Government rules – Councils must prove they can sustainably fund long-term water services.
• Infrastructure investment needed – Upgrading aging pipes, treatment plants, and stormwater systems will cost significantly more in the coming years.
• Population growth – More people means greater demand for water, wastewater, and stormwater services.
• Rising costs – Maintaining reliable services under stricter water quality and environmental standards means higher costs.

This isn’t a decision about whether change happens - it’s about making sure it happens in a way that works best for our community.

Council's Water Services Delivery Plan

Council's Water Services Delivery Plan has been assessed and accepted by the Local Government Secretary. The Plan outlines how water, wastewater, and stormwater services will be delivered over the next 10 years and confirms Council’s intention to establish a joint Water Organisation with Tauranga City Council from 1 July 2027.

The Plan's acceptance follows Council approving, and signing in September 2025, two key documents that confirm the pathway toward establishing a joint Water Organisation to deliver drinking water, wastewater and stormwater services from 1 July 2027.

The documents are:

• Water Services Delivery Plan (WSDP) - submitted to Government, meeting the 3 September deadline. This Plan outlines Council's intention for a multi-council Water Services Council-Controlled Organisation (WSCCO) with Tauranga City Council.
• Commitment Agreement - signed by both Western Bay and Tauranga City Councils.

The acceptance of the Water Services Delivery Plan means that Council demonstrates how we will comply with the new Local Water Done Well framework, which requires financially sustainable, legally compliant models of water service delivery by 1 July 2028.

The Plan confirms that working with Tauranga City offers the strongest pathway to long-term affordability and resilience. Financial and technical modelling showed that a multi-council Water Organisation is better placed to meet regulatory standards and future growth needs than Council operating alone.

The Commitment Agreement, approved alongside the Water Services Delivery Plan, sets out how Western Bay and Tauranga City will work together to design the new organisation. It outlines key principles including affordability, transparency, environmental guardianship, and tangata whenua involvement.

The agreement is a ’rule book for discussions’ - providing direction and structure without locking in final answers at this stage. It also establishes an elected member oversight group above the two councils’ chief executives to guide the next phase of work.

With the Plan submitted to the Department of Internal Affairs a due diligence phase will now take place, covering governance, financial, infrastructure and cultural considerations, before the Water Organisation is formally established in 2027.