We are proposing to create a water organisation jointly-owned with a number of other district councils in the Waikato.

In 2023, Waikato councils identified some common waters issues they were facing. This included ageing infrastructure, population growth, rising costs, new regulations and limited funding options.

Their response to this was to co-design a joined-up approach for water and wastewater services – Waikato Water Done Well. It is seen as a way for councils to collaborate on sustainable, high-quality waters services while still keeping a local voice. There are six other district councils who have signed a non-binding Heads of Agreement for this option. They are: Matamata-Piako, Hauraki, Ōtorohanga, Waitomo, South Waikato and Taupō.

Hamilton City and Waikato District Councils are consulting on a proposal to form a separate CCO.


Waikato Water Done Well addresses these issues by
  • Financial sustainability
  • Leading workforce
  • Customer focus
  • Local influence
  • Delivering on expectations

Finances

Rates

Water charge increases of about four percent per year for the eight years from July 2026 to the end of June 2034 are indicated. This includes the margin for inflation over that period. This is lower than other water service delivery models considered, including the status quo.


Water charges per residential connection (including GST)
2024/252029/302033/34
Waikato Waters Ltd (CCO) $1,877*$2,234$2,260
Council$1,877*$2,567$2,745
Difference - additional cost/ (saving) $0($333)($485)

* Based on the draft 2025-34 Long Term Plan

Debt

The CCO would be responsible for all water and wastewater services and assets.

The transfer of drinking water and wastewater activities to the Waikato Water Done Well CCO includes the transfer of debt the Council has that relates to those activities. That means that Council’s debt will be less than it is right now.

The forecast debt relating to those assets as at 30 June 2026 for Waipā is approximately $230 million. This debt would transfer to the water CCO. All the shareholding councils involved in establishing the CCO would do this too.

All future water and wastewater debt would be the responsibility of the CCO, this is estimated to peak at around $300 million in 2029/30. Removing the spending and forecast revenue from the Council, results in an increase of debt headroom from July 2026, which reduces financial risk.


People, place and the environment

Healthy Water, Healthy People, Te Mana o Te Wai, Te Mana o Te Tangata. That’s the vision of Waikato Water Done Well.

Under this option, the CCO would be responsible for all of the activities needed to deliver drinking water, wastewater services and, for those councils who choose to, stormwater services to their communities. This includes sourcing, treating and discharging water, planning for future repairs and upgrades.

The CCO would be a separate legal entity, owned by the shareholding councils, and employ the staff to deliver the services across the districts they serve. The CCO would also be responsible for informing the community and involving it in future water decisions, and ensuring that the enhanced environmental standards are met.

Potential pros

  • Legal compliance - meets legal requirements.
  • Financial implications - most affordable option of all options, including status quo.
  • Scale - achieving efficiencies of scale is a key objective of the CCO. This includes opportunities for service and delivery improvements through the consolidation of operations and maintenance, procurement, workforce optimisation and enhanced relationships. Efficiency gains will offset establishment costs within the first eight years of operation.
  • Climate change - with enhanced efficiencies and increased borrowing capacity, there is greater potential for improving climate change mitigation and adaptation.
  • Debt capacity - the CCO has the greatest debt capacity of all options, including status quo.
  • Workforce - sustainability, attraction and retention issues across the broader region are expected to improve, particularly in rural and provincial councils.

Potential cons

  • Perception of a loss of control - ratepayers as consumers will still have the ability to influence the Council as shareholders through its planning processes, and also have the opportunity to engage directly with the CCO. All consumers will also have rights under the Commerce Commission.
  • Will likely require complex servicing agreements with the Sub-Regional Hamilton City and Waikato District CCO to ensure that both CCOs would plan for and invest in key infrastructure across key growth areas.
  • The need for the Council to act as guarantor for the water organisation’s borrowings.

What does this mean for you?

Under the CCO model: Water services would be provided by Waikato Waters Ltd.

Under the current model: Water services are delivered by your Council.

Under the CCO model: Wastewater services would be provided by Waikato Waters Ltd

Under the current model: Wastewater services are delivered by your Council

Under the CCO model: Waikato Waters Ltd – once it is up and running. The changes will occur over time but you will always be able to call your council as your first port of call if you are unsure.

Under the current model: Your Council.

Under the CCO model: The Board makes decisions having regard to a Statement of Expectations agreed to by Councils and regulatory requirements. This is the “what, when, where and how” for future infrastructure expenditure.

Under the current model: The Mayor and councillors having regard to regulatory requirement.

Under the CCO model: Costs will increase – these costs are going up no matter what. But there will be efficiency savings and these are likely to be significant over time.

Under the current model: Costs will increase – these costs are going up no matter what. Under the current model, many councils cannot do what needs to be done in a timely way, that is affordable for their communities

Under the CCO model: Yes, there will be a separate invoice for water and wastewater services from the CCO over time.

Under the current model: No, you would continue to be charged the same way.