Whakatāne District Council met yesterday to confirm the future direction of water services in the district.

The decision will shape how essential services – drinking water, wastewater and stormwater – are delivered in the years ahead.

The council has decided water services should be delivered by a stand-alone ring-fenced business unit, while continuing to work collaboratively with neighbouring councils to further investigate the benefits of a Multi Council-Controlled-Organisation (Multi-CCO).

Preliminary discussions are under way with Kawerau, Ōpōtiki, and Rotorua Lakes Councils to explore the creation of a new water service delivery entity over time.

In line with most submissions received, the council will, in the interim, retain water services in-house.

In preparation for upcoming legislative changes under the Local Government Water Services Bill, it will begin work to ring-fence its water services business unit.

Further investigation of the relative benefits of an Eastern Multi-CCO, and the establishment of an entity, is expected to take three years, with further consultation occurring through the 2027 draft Long-Term Plan, with establishment by July 1, 2028.    

Mayor Dr Victor Luca said the council had undertaken analysis and robust discussion to determine the best path forward.

The decision follows months of discussion and public consultation as part of the ongoing Local Water Done Well project, which resulted in 84 written submissions and nine verbal submissions.

Under the Multi-CCO model, the council would co-own a limited liability company responsible for delivering water services.

All water-related assets, revenue, and debt would transfer to the new entity, which would operate under regulatory oversight and provide services directly to customers.

A Water Services Delivery Plan will now be prepared to be approved by the council on August 14, ahead of submission to the Department of Internal Affairs by September 3. Transition planning and implementation will begin following Department of Internal Affairs approval.

The new delivery model is required to be fully implemented and operational by July 1, 2028.

The updated Water Services Programme differs from the council’s current long-term plan and infrastructure strategy. These inconsistencies will be addressed through the next long-term plan process.