What ‘Local Water Done Well’ means for us

Under the Government’s Local Water Done Well policy, we’re required to consider changes to the way water services are delivered in our district.

We’re required to consult with you on a minimum of two options for delivering water services in the future.

The legislation says we have to include an option similar to how we do it now – that is, keep it in-house but with some changes to meet new regulatory requirements. Or we can set up an independent water organisation owned by one or more councils to deliver water services.

Councils will be required to submit a 'water service delivery plan' by 3 September 2025 showing how the selected option will meet the new regulatory and investment requirements.

We’re consulting on two options

We’ve looked at all scenarios, and shortlisted two options for you to consider:

Option 1 ‘The One’ – Keep our water services in-house but with some changes. This is our preferred option.
Option 2 ‘The Four’ – A four council-owned water services organisation with Horowhenua, Palmerston North, and Manawatū (‘The Four’) councils. This option would require us to transfer our water assets to the new organisation of which Council would be a shareholder.

Other options we considered

Joining the Wellington region – We have historically looked to the Wellington region for jobs, entertainment, and business. We’re part of Wellington region’s public transport network and environmental management. In November 2024 Council decided against this option because the modelled costs to Kāpiti Coast ratepayers were more than double those of other options. Read the report in Related Links below.
Consumer Trust – A consumer trust (similar to the Electra power provider) was discounted due to the high set up and operational costs, and that it wouldn’t be eligible for the preferential borrowing rates available to councils and council-owned organisations through the Local Government Funding Agency.
Kāpiti-only council-owned organisation – This option was discounted due to the high set up and additional ongoing higher operating costs compared to operating an in-house model.
A two-council option with Horowhenua – The key benefits of a joint arrangement are economies of scale, but this option wouldn’t be large enough to offset the set-up and operational costs.

Our track record and preferred option

In Kāpiti we've invested a lot in our water management, security and infrastructure for our community and the environment. Find out how our water supply works.

Our council (and you, our community) own our water-related assets, which together have a value of $499 million (30 June 2024).

Because of our past and ongoing investment in our water assets, we're positioned well for the future. A 2018 Auditor-General’s report, Managing the supply of and demand for drinking water, found we're setting a good example with our future-focused approach to supplying drinking water.

Our current arrangements have served us well. For this reason, our preferred option is to keep your water services in-house (option 1 ‘The One’)

Read our consultation document and supporting material and then have your say.

The need for a referendum

When we started the water meters discussion in 2011, our community expressed strong concern that water metering was a step towards privatisation and that Council could lose control of its water services. In recognition of this concern, we updated our standing orders at that time to say that any changes to the ownership, governance, or management of the district’s water assets or services must be backed by a 75% majority of councillors and their decision should be informed by a (non-binding) referendum of the community.

Under the in-house scenario (option 1) our water assets, liabilities and operations would remain directly owned and managed by Council. Under the scenario of a joint water organisation (option 2), we would be transferring our water assets and liabilities, including water-related debt, to a council-owned organisation.

Council has decided to deal with the referendum issue once it has decided which option to pursue for three reasons:

1. If we go with our preferred option (keeping water services in-house), we won’t need a referendum.

If we go with Option 2, Council could then decide if:
the protections against privatisation embedded in the draft legislation are enough to satisfy the community’s concerns, and
if this consultation has been sufficient opportunity for you to make your views known and whether a non-binding referendum simply duplicates the process.

Read more about this on pp14-14 of the consultation document then have your say.

Next steps

There continues to be a lot of uncertainty around the requirements of the Local Water Done Well policy and legislation but we are consulting now so we can meet the tight timeframes set by Government to deliver a water services plan by 3 September 2025.

Hearings for the consultation will be held in early May. You can indicate on your submission if you wish to speak at the hearings.