Source: Hutt City Council
Wellington’s metropolitan councils have agreed to form a new jointly owned water services entity that will be more efficient, reliable, and deliver greater value for money.
Upper Hutt City Council was the final partner to vote in favour of the new entity today, following earlier support from Porirua, Lower Hutt and Wellington City Councils and Greater Wellington Regional Council.
The new entity will take over the ownership and management of drinking water, wastewater and stormwater infrastructure by 1 July 2026.
Unlike Wellington Water, the new entity will own the water infrastructure that is currently owned by councils. The entity will be able to generate its own income, manage its own debt, and will not be constrained by council funding.
Lower Hutt Mayor Campbell Barry welcomed today’s milestone saying the decision marks a reset for water services in the region.
“The new entity unlocks the financial tools needed to make smart investments in water infrastructure, without placing an unsustainable burden on ratepayers. “It will enable better decision-making across the entire network and ensure more consistent service delivery.”
Barry said it was significant that all five councils have come to the table with a shared vision.
“It shows we’re putting what’s best for our ratepayers and residents ahead of parochial politics.”
Barry said turning around historical underinvestment in water infrastructure will take time and water bills will still increase under the new entity to meet the needs of the region’s ageing network.
However, high-level modelling shows that any rise in water charges will be about 30% less than what households would face under the current model.
“Our main goal is to introduce a new way of delivering water services that allows for more investment in the network with an entity that is more efficient; while keeping costs more affordable and sustainable over the long-term,” Barry said.
The entity will be governed by a board of independent professional directors who will be appointed by a steering committee of council and iwi representatives.
The primary relationship of the entity will be with its customers (residents) not its shareholders (councils), giving the organisation the independence and accountability to deliver.
The decision comes as part of the Government’s ‘Local Water Done Well’ reform, which requires councils to decide on a long term water services model and submit delivery plans by September 2025.
