Whakatāne District Council is continuing to make steady progress on the Government’s Local Water Done Well reforms, with a new report confirming work is on track while longer-term options remain under consideration.
The Council is progressing the establishment of a dedicated Internal Business Unit for water services, as required under the new legislation. Key milestones have already been achieved, including approval of the Council’s Water Services Delivery Plan in November 2025 and submission of its first quarterly report to the Department of Internal Affairs (DIA).
At the same time, Council is working alongside Kawerau, Ōpōtiki and Rotorua councils to explore whether a shared, multi Council-Controlled Organisation could deliver benefits for communities over the long term.
Transition Director Nic Johansson says the work is about ensuring the Council meets its obligations now, while carefully considering what will deliver the best outcomes for Whakatāne District communities in the future.
“We’re making good progress on establishing our Internal Business Unit, which is a key requirement under the reforms. At the same time, we’re taking a measured approach to understanding whether working with neighbouring councils could provide long-term benefits for our communities.”
Council previously consulted with the community in April and May 2025 on options for delivering water services, including an Internal Business Unit and a multi Council-Controlled Organisation. Following that process, councillors decided to establish the Internal Business Unit as the initial delivery model.
“That earlier consultation helped inform the Council’s decision to move ahead with the Internal Business Unit. What we’re doing now is building on that work while continuing to test whether there are future opportunities to improve how water services are delivered and cost efficiencies,” says Mr Johansson.
The latest report to the Finance, Performance and Risk Committee (Thursday, 7 May 2026) shows the Council is tracking against the key deliverables set by DIA. These include delivery of capital projects, compliance with drinking water standards and putting in place the financial frameworks required as the Council moves to operate as an Internal Business Unit.
The latest report also confirms that early financial modelling of a potential multi Council-Controlled Organisation has been completed. While initial results suggest there may be some benefits, the modelling is still high-level and indicative only.
“It’s important to understand that this is early modelling based on a 10-year view. The more detailed 30-year modelling we’re working through will give a much clearer picture of costs, benefits and long-term impacts,” says Mr Johansson.
For residents, there are no immediate changes to water services. Drinking water, wastewater and stormwater services continue to operate as usual.
The reforms do, however, introduce stricter financial requirements, including ring‑fencing water revenue.
“Ring-fencing means money collected for water services can only be used for water services. It improves transparency and helps ensure we are investing sustainably in the infrastructure our communities rely on.”
Any decisions about future service delivery models, including whether to move to a multi Council- Controlled Organisation, will be made by each council and will involve public consultation.
“No decisions have been made about changing how water services are delivered. If we do move toward a different model, our communities will have the opportunity to have their say before any final decision is made.”
Further work is now underway, including completion of detailed 30‑year financial modelling later this month. Councils are expected to consider a preferred future delivery model later in 2026, with public consultation likely to follow before the end of 2026.
