Our Water Done Well

We’re proposing a change to how water supply, wastewater, and stormwater services are delivered in the future.

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Background

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What we're proposing

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Next steps

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Background on Local Water Done Well

The Local Government (Water Services Preliminary Arrangements) Act 2024 (WSPA Act) is the first legislation to support Local Water Done Well and was enacted in September 2024. The WSPA Act sets out several transitional provisions, including a requirement for all councils to prepare and submit a Water Services Delivery Plan (WSDP) to central government. This plan must describe the current state of a council’s water assets and services as well as the future arrangements for delivery of water services and must demonstrate financial sustainability of water services.  

The WSPA Act provides an opportunity for councils to review current arrangements and to consider whether there are better alternatives to provide sustainable and efficient water services, addressing current challenges and laying the foundation for future improvements. 

Further draft legislation, the Local Government (Water Services) Bill (LGWS Bill), is currently before parliament, and will provide a framework for managing and delivering water services in Aotearoa New Zealand once enacted. This will result in significant changes to the way water services are managed and reported on to their communities, similar to what is already in place for the electricity sector.

What we're proposing

After evaluating different models to determine the best way to deliver water supply, wastewater, and stormwater services in the district, our proposed model for future delivery of water services is to:

  • Establish a Water Services Council Controlled Organisation (WSCCO) to deliver water services.

The alternative would be to continue to deliver water services in-house, recognising that changes would need to be made to enable us to respond to the new regulatory environment. 

Under our proposed model, QLDC could specifically establish an independent WSCCO to deliver water services in the Queenstown Lakes District. QLDC would fully own the proposed WSCOO and be its only shareholder, and retain clear oversight of the delivery of water services.  

Specialist board members would be appointed to the new organisation based on skills and experience specific to the needs of the new WSCCO and governance of regulated water services.

With this model, the WSCCO would own water assets and associated debt and liabilities – transferred by QLDC, and manage and provide water supply, wastewater, and stormwater services to the community. Legislation specifically prevents it from being privatised or paying a dividend.

By setting up a WSCCO, the Council has the greatest opportunity to deliver high quality, resilient, sustainable, and reliable water services and provide certainty for our communities on the provision of these services.

Why are we proposing a WSCCO?

A Water Services Council Controlled Organisation offers an approach that introduces independent expert governance to exclusively prioritise and deliver water services in the best interests of the Queenstown Lakes District and free from political influence, and all while meeting regulatory requirements. 

Minimising the cost to households for water services in the long term has been an essential part of QLDC’s assessment of the different models available, given costs are already projected to increase significantly as outline in the Long Term Plan 2024-2034. Other considerations included a solution’s ability to attract and retain the best staff, adapt to changing requirements without disruption, provide for effective and efficient management and delivery of water services, maximise public value and minimise waste, and enable community interests and priorities.

With the proposed WSCCO model, we estimate household charges for water to be, on average, 5.2% higher in the medium term (2024-2034) compared with an inhouse model, but 10.1% lower on average in the long term (2034-2044) compared with that same inhouse model.

Because a WSCCO has different borrowing requirements, higher water charges would be required initially to deliver the same services and capital projects QLDC currently has planned. However, this would generate more revenue in the short-term, repaying debt faster and leaving the WSCOO with an estimated $37 million less in debt by 2034.

With less debt and less costs associated with interest on borrowing, household water charges with a WSCCO are estimated to drop below the inhouse model.

Ensure our water's done well and have your say

We would like to know your position on the following future service delivery models for water services:

  • Establish a Water Services Council Controlled Organisation to deliver water services
  • Continue to deliver water services inhouse, recognising that changes would need to be made to enable us to respond to the new regulatory environment. 
  • And any other comments you may have on the proposed model outlined in the consultation document.

From Monday 2 June 2025, feedback can be shared in any of the following ways: 

  • Online: Using the feedback form available at https://letstalk.qldc.govt.nz.  
  • By post: Sent to Queenstown Lakes District Council, Private Bag 50072, Queenstown 9348, Freepost 191078, Attention: Our Water Done Well.
  • By email: Sent to letstalk@qldc.govt.nz

Subject line: Our Water Done Well

Copies of the detailed consultation document (statement of proposal) will be available at no cost from either of the Council offices at 10 Gorge Road, Queenstown, 47 Ardmore Street, Wānaka, or any public library. 

Feedback must be received digitally or in writing by Sunday 29 June 2025. 

Next steps

Council will consider feedback on the proposed future delivery model for water services and make a decision on Thursday 31 July 2025.