Councils Consider Next Steps After Eight-Month Water Services Investigation

Councils across Rotorua, Whakatāne, Kawerau and Ōpōtiki are considering their next steps on a possible joint organisation to deliver water services, following the completion of an eight-month investigation into the proposal.

A working group of mayors and elected members from the four councils received the final technical report on 17 August.

Prepared by consultants Martin Jenkins, the report examined whether a shared Water Services Council Controlled Organisation (WSCCO) could provide better outcomes over 30 years than continuing with each council's current in-house arrangements.

The investigation was prompted by community consultation in 2025, after which the four councils agreed to explore the potential benefits of a shared approach.

Rotorua Lakes Council said the investigation had considered a range of issues, including infrastructure condition and renewals, planned investment, regulatory compliance, financial positions, Treaty settlement obligations and iwi and hapū engagement.

"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," the council said.

Three possible delivery models were assessed: continuing with an internal council business unit, establishing an asset-owning WSCCO, or creating a service-delivery-only WSCCO.

The report found the existing in-house model could meet statutory requirements over the next decade, but identified increasing long-term sustainability pressures.

An asset-owning WSCCO was assessed as having the strongest potential for future benefits, although the report said further work on financial comparisons, governance and representation would be needed before councils could fully assess its advantages and disadvantages.

The service-delivery-only model was considered less suitable, with the report finding it could introduce additional complexity and was unlikely to provide a sustainable long-term solution.

The assessment also considered whether each model could provide financially sustainable services, protect public health and the environment, improve resilience to natural hazards and climate change, support infrastructure planning, keep services affordable and meet councils' obligations to iwi and hapū.

The councils are not yet committed to establishing a joint organisation.

Each council will now consider which option best meets the needs of its community.

Where required, councils will undertake further consultation or other community engagement before making a final decision.

The four councils are expected to decide on their preferred options and proposed decision timeframes next month.

Rotorua Lakes Council said the process had demonstrated a "strong commitment to navigating a complex and evolving legislative and regulatory environment".

The final decisions will determine whether the councils continue with separate water-service arrangements or move towards a shared model, with governance, representation, financial arrangements and the future ownership of water assets among the issues still to be worked through.