130Obligation to maintain water services

1. This subpart applies to a local government organisation that provides water services to communities within its district or region—

2. at the commencement of this section:
3. at any time after the commencement of this section.

4. A local government organisation to which this section applies must continue to provide water services and maintain its capacity to meet its obligations under this subpart.

5. In order to fulfil the obligations under this subpart, a local government organisation must—

6. not use assets of its water services as security for any purpose:
7. not divest its ownership or other interest in a water service except to another local government organisation:
8. not lose control of, sell, or otherwise dispose of, the significant infrastructure necessary for providing water services in its region or district, unless, in doing so, it retains its capacity to meet its obligations:
9. not, in relation to a property to which it supplies water,—
   1. restrict the water supply unless section 193 applies; or
   2. stop the water supply unless section 25 of the Water Services Act 2021 applies.

10. This section—

11. does not prevent a local government organisation from transferring a water service to another local government organisation; and
12. does not override sections 131 to 137.

Notes

• Section 130(3)(d)(ii): amended, on 15 November 2021, by section 209 of the Water Services Act 2021 (2021 No 36).