Local Government (Water Services) Act undergoes third reading

Legislation includes offences regarding plans, permits, bylaws, directions

Local Government (Water Services) Act undergoes third reading

The Local Government (Water Services) Act 2024 – which seeks to establish a framework for local government to provide water services flexibly, cost-effectively, accountably, and in a financially sustainable manner – has passed its third reading. 

According to information from the New Zealand legislation website, the new law covers: 

  • territorial authorities’ responsibility to provide water services in their districts 
  • territorial authorities’ different methods to structure service provision arrangements, including through water organisations 
  • territorial authorities’ and water organisations’ responsibilities as water service providers 
  • water service providers’ functions, duties, and powers associated with complying with their responsibilities 

The legislation specifies water service providers’ role in connection with assessing water services, ensuring water supply when a drinking water supplier is dealing with a significant or potential problem, and closing and transferring small water services. 

The new law requires water service providers, on an ongoing basis, to submit water service delivery plans if they have not transferred responsibility for providing water supply services and wastewater services to a water organisation. 

“One amendment of note is the additional requirements for councils that do not transfer responsibility for providing water services to a water organisation,” said an article on Buddle Findlay’s website. “Those councils will now need to submit further water services delivery plans by 3 September 2030, and every five years thereafter.” 

According to the New Zealand legislation website, the law aims to ensure the transparency of information about providing water services – including data regarding revenue, charging, expenditure, and levels of service – for the benefit of consumers and communities. 

The legislation includes offences relating to: 

  • infrastructure 
  • water supply, stormwater, and wastewater networks 
  • plans, permits, bylaws, directions, and compliance orders 
  • duties associated with administering the legislation 

Bill’s progress

According to information from Parliament’s website, the omnibus bill broadly intends to establish a new regulatory framework for water services delivery. 

The government: 

  • introduced the bill on 9 December 2024 
  • finished the first reading on 17 December 2024 
  • referred it to the Select Committee 
  • finished the second reading on 17 July 2025 
  • referred it to the Committee of Whole House on 13 August 2025 
  • divided the bill on 12 August 2025 

“While the Bill will soon be law, work to implement water services reform is not over yet,” Buddle Findlay’s article said. “The deadline for councils to deliver their water services delivery plans to the Secretary for Local Government by 3 September 2025 is rapidly approaching, after which councils and government will be turning their full attention towards implementation.”