Local Water Done Well

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Why this matters

Councils across the country must review how they deliver water services and submit a Water Services Delivery Plan by 3 September 2025. This is part of the Government’s Local Water Done Well programme, ensuring water services remain financially sustainable, high-quality, and well-managed for the future.


Where things are at in the process (4 September 2025)

Council has approved, and signed, 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. You can read it here
  • Commitment Agreement - signed by both Western Bay and Tauranga City Councils. You can read it here


The adoption of the Water Services Delivery Plan means that Council will meet the Government’s 3 September deadline to demonstrate how they 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.


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.


The options we consulted with the community on from 24 March to 24 April 2025:

After reviewing all possible alternative options to our current model, we identified two main choices:

Option 1: Single Council Water Services Organisation

  • A separate Council Controlled Organisation is created to manage water services. This provides some financial benefits, including increased borrowing capacity. However, this option does not address the benefits that come from being part of a larger specialist organisation or sufficiently meet long-term funding, affordability and investment needs.

Option 2: Multi Council Water Services Organisation (preferred option)

  • A shared entity with potential partners such as Tauranga City Council and/or other councils. This option enhances financial sustainability while maintaining local oversight. The benefit of this over ten years could be as much as $4000-$5000 per water connection. Efficiencies would build over time, likely generating further savings for our community.

Regardless of the option, water charges will rise - but a multi council model would keep costs lower than going alone.


How do the options compare?

To plan for the future of our water services, we've assessed our infrastructure and how well we can meet the new government regulations.

We've listened to our communities and know that cost, control, ownership, and quality of our water services matter most. These priorities have guided our decision-making and form the basis for comparing each option. To see how each model measures up, we've put together an information sheet which will help you understand the benefits and trade-offs.


Comparing the options for cost:

The below table shows how each water delivery option stacks up across key financial measures - including future water charges, household affordability, and debt impacts for Western Bay.


If you're keen to do a deep dive into the detail, see the full financial data and technical reports, prepared by independent local government consultants, Martin Jenkins. (Water Services Alternative Scenarios Report, Water Services Viability and Sustainability Assessment Report, and Water Services Delivery Models for Consultation).

Why this matters

Councils across the country must review how they deliver water services and submit a Water Services Delivery Plan by 3 September 2025. This is part of the Government’s Local Water Done Well programme, ensuring water services remain financially sustainable, high-quality, and well-managed for the future.


Where things are at in the process (4 September 2025)

Council has approved, and signed, 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. You can read it here
  • Commitment Agreement - signed by both Western Bay and Tauranga City Councils. You can read it here


The adoption of the Water Services Delivery Plan means that Council will meet the Government’s 3 September deadline to demonstrate how they 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.


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.


The options we consulted with the community on from 24 March to 24 April 2025:

After reviewing all possible alternative options to our current model, we identified two main choices:

Option 1: Single Council Water Services Organisation

  • A separate Council Controlled Organisation is created to manage water services. This provides some financial benefits, including increased borrowing capacity. However, this option does not address the benefits that come from being part of a larger specialist organisation or sufficiently meet long-term funding, affordability and investment needs.

Option 2: Multi Council Water Services Organisation (preferred option)

  • A shared entity with potential partners such as Tauranga City Council and/or other councils. This option enhances financial sustainability while maintaining local oversight. The benefit of this over ten years could be as much as $4000-$5000 per water connection. Efficiencies would build over time, likely generating further savings for our community.

Regardless of the option, water charges will rise - but a multi council model would keep costs lower than going alone.


How do the options compare?

To plan for the future of our water services, we've assessed our infrastructure and how well we can meet the new government regulations.

We've listened to our communities and know that cost, control, ownership, and quality of our water services matter most. These priorities have guided our decision-making and form the basis for comparing each option. To see how each model measures up, we've put together an information sheet which will help you understand the benefits and trade-offs.


Comparing the options for cost:

The below table shows how each water delivery option stacks up across key financial measures - including future water charges, household affordability, and debt impacts for Western Bay.


If you're keen to do a deep dive into the detail, see the full financial data and technical reports, prepared by independent local government consultants, Martin Jenkins. (Water Services Alternative Scenarios Report, Water Services Viability and Sustainability Assessment Report, and Water Services Delivery Models for Consultation).