The challenges for local government include funding infrastructure deficits and preparing for large re-investments that are estimated to require $110 billion over the next 30 to 40 years.

[4] There are also significant challenges in meeting statutory requirements for the safety of drinking water, and the environmental expectations for management of stormwater and wastewater.

A major programme of nationwide reform is being developed by central government, with the aim of rationalizing the provision of services for the three waters.

"[7][8] The privately owned water supply schemes that service many small rural areas are not included in the reform programme.

[10] While the New Zealand Government has expressed its commitment to meeting the Sustainable Development Goals, it is yet to announce any specific policy or data strategy for that purpose.

A former councillor said: "Most people in Inangahua Junction are pensioners; they're on low fixed incomes and they simply have no ability to pay these sorts of fees".

[15] In February 2020, the Auditor-General published a report reviewing how well public organisations are managing water resources and delivering water-related services.

In the introduction to the report, the Auditor-General observed a lack of clarity about the issues in managing the three waters, how to address them, and who will deliver programmes of work.

[16][17] On 29 January 2020, the Government announced the investment of $12 billion in the New Zealand Upgrade Programme, focussing on rail, roads, schools and hospitals.

[18] An economist from Infometrics questioned whether the investment programme was focussed in the areas of greatest need, and pointed to New Zealand's ageing water infrastructure.

However, more than half of the planned investment in waste and stormwater is to replace assets that are at the end of their working life, with only a quarter of the money allocated for additions and improvements.

The Cabinet paper identified affordability and capability as two key challenges facing New Zealand's three waters service delivery infrastructure.

[34] 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.

[39] In early 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 have a year to develop plans for funding water services they need and ensuring their financial sustainability.

[41] New Zealand enjoys high rainfall, especially within the West Coast region of the South Island and the country is notable for its many large, and sometimes braided rivers.

Some of these aquifer fed systems such as that serving Christchurch was of sufficiently good quality that no disinfection of final water was practised until the recent earthquake events.

[43] Water supplies in New Zealand generally have low concentrations of naturally-occurring fluoride, at levels that are insufficient to promote good dental health.

A report by the Office of the Prime Minister's Chief Science Advisor issued in 2021 confirmed previous studies that showed a positive impact of fluoridation on dental health, and no significant adverse effects.

[47] Stage 1 focused on identifying what happened, what caused the outbreak, and assessing the conduct of those responsible for providing safe drinking water to Havelock North.

Another key finding was that several of the parties with responsibility for the water supply regime for Havelock North had failed to adhere to the high levels of care and diligence needed to protect public health and to avoid outbreaks of serious illness.

[51]: 8 The recommendations arising from Stage 2 of the Inquiry including wide-ranging proposals for legislative and regulatory changes to drive systematic improvements in the management of drinking water nationwide.

[51] The Institute of Environmental Science and Research (ESR) carried out genome-sequencing on the campylobacter strain that was found in sick people during the outbreak.

The study suggests that the total number of campylobacteriosis cases traceable to the water contamination could be as high as 8320, with up to 2230 of these living outside of Havelock North.

[52] In September 2023, there was an outbreak of illness caused by cryptosporidium in Queenstown, with most cases located in the central business area and affecting people under the age of 40.

[56] All significant sized urban developments are served by municipal sewers which drain to modern treatment works with final discharges to river or the sea.

[58]: 10 Rural communities and isolated housing is served by septic tanks or by chemical toilets or earth closets depending on location and usage.

The 135 wastewater treatment plants discharge into the following type of environment:[59] In its summary of the findings from the National Performance Review 2018–19, Water New Zealand observed that management of stormwater quality is not yet widespread.

The main recommendations concern the need for improved investment decision making, based upon better information about flood risks, and the performance and capacity of stormwater assets.