Key issues facing water service providers have included high operational and maintenance costs, chemical and E. coli contamination.
The Cabinet paper identified affordability and capability as two key challenges facing New Zealand's three waters service delivery infrastructure.
Under a co-governance structure, these entities would be managed by independent boards jointly elected by a group set up by councils and Māori iwi (tribes).
[15] From November 2021, a working group of mayors and Māori representatives reviewed issues of representation, governance and accountability, and reported back in March 2022 with 47 recommendations.
[23][24] During the 2023 New Zealand general election held on 14 October 2023, Labour lost its parliamentary majority with Prime Minister Chris Hipkins conceding defeat.
[25] The National Party led by Christopher Luxon subsequently formed a coalition government with the support of ACT and New Zealand First.
[28][4] The Technical Advisory Group's membership consisted of Castalia Limited's managing director Andreas Heuser (Chair), New Zealand Infrastructure Commission director and former Watercare chief executive Raveen Jaduram, Porirua City Council chief executive Wendy Walker, Chapman Tripp partner Mark Reese, and Whangārei District Council chief executive Simon Weston.
The repeal legislation was supported by National, ACT and New Zealand First but was opposed by the opposition Labour, the Green parties and Te Pāti Māori.
[28][2] In 8 August 2024, Brown announced that council-controlled organisations would be able to borrow money for water infrastructure from the Local Government Funding Agency.
Under the legislation, local councils would have a year to develop plans for funding water, wastewater and stormwater services that they need and ensuring their financial sustainability.
The Central Otago District Council also contracted consultant company Morrison Low to develop a business case exploring regional delivery models including maintaining the status quo of running an in-house business unit, creating a specialised council-controlled organisation and a joint asset-owning entity in the Otago and Southland Regions.
[38] By mid-December 2024, Newsroom reported that many local councils were exploring options for providing water services while managing costs and chemical and E. coli contamination issues.
It expressed concerned that the New Zealand Government had "limited consultation and engagement" with key stakeholders on the development of its policies including water services sector organisations, local councils, Māori iwi (tribes) and hapū (subgroups) and other interest groups.