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Local Government Act 2002
Specific obligations and restrictions on local authorities and other persons
Obligations and restrictions relating to provision of water services
Joint local government arrangements and joint arrangements with other entities
137: Joint local government arrangements and joint arrangements with other entities

Part 1:
Preliminary provisions

3Purpose 4Treaty of Waitangi 5Interpretation 5ATemporary definition of public notice as result of outbreak of COVID-19 6Meaning of council-controlled organisation and council organisation 7Exempted organisations 8Act binds the Crown 8AProvisions affecting application of amendments to this Act

Part 2:
Purpose of local government, and role and powers of local authorities

9Outline of Part

Purpose of local government

10Purpose of local government

Role of local authorities and related matters

11Role of local authority 11ACore services to be considered in performing role 12Status and powers 13Performance of functions under other enactments 14Principles relating to local authorities

Co-ordination of responsibilities of local authorities

15Triennial agreements 16Significant new activities proposed by regional council 17Transfer of responsibilities 17ADelivery of services

Minister and Secretary

18Responsibilities, powers, and duties of Minister 19Secretary

Part 3:
Structure and reorganisation of local government

20Outline of Part

Structure of local government

21Local authorities 22Minister is territorial authority in certain cases 23Description of local government

Reorganisation of local authorities

24AAPurpose of local government reorganisation provisions 24Scope of local government reorganisation 24ATransitional modification or suspension of certain statutory requirements after issue of reorganisation plan 25Order in Council to give effect to reorganisation plan 25AOrder in Council to give effect to reorganisation implementation scheme 26Power to amend reorganisation plans and reorganisation implementation schemes 26ADuties of local authorities in relation to local government reorganisation 27Application to be called city council or district council 27AChange of name of unitary authorities 27BOrders in Council to be published in Gazette

Local Government Commission

28Local Government Commission 29Commission is body corporate with full powers 30Functions and powers of Commission 31Report to Minister on matters relating to local government 31AMinister's expectations of Commission in relation to local government reorganisation 32Review of operation of Act and Local Electoral Act 2001 33Membership of Commission 34Additional powers of Commission 35Evidence before Commission 35AApplication of Official Information Act 1982 36Further provisions relating to Commission and its proceedings 37Appeals against decisions of Commission

Part 4:
Governance and management of local authorities and community boards

38Outline of Part

Local authorities

Local boards

48AApplication 48BInterpretation 48CPurpose of local boards 48DUnitary authority decision making shared between governing body and local boards 48EMembership of local boards 48FIndemnification and liability of local board members 48GStatus of local boards 48HFunctions, duties, and powers of local boards

Decision making

48IGeneral scheme 48JDecision-making responsibilities of governing body 48KDecision-making responsibilities of local boards 48LPrinciples for allocation of decision-making responsibilities of unitary authority

Local boards funding policy

48MLocal boards funding policy

Local board plans and agreements

48NLocal board plans 48OLocal board agreements 48PConsultation required on proposed content of local board agreement 48QApplication of Schedule 7 to local boards and their members

Disputes between local boards and governing body

48RDisputes about allocation of decision-making responsibilities or proposed bylaws 48SLocal Government Commission to determine disputes

Community boards

49Establishment of community boards 50Membership of community boards 51Status of community boards 52Role of community boards 53Powers of community boards 54Application of other provisions to community boards

Register of members’ pecuniary interests

54ARegister of members’ pecuniary interests 54BPurpose of register 54CMembers to make pecuniary interest returns 54DAccuracy of information included in pecuniary interest return 54EContents of pecuniary interest return relating to member’s position 54FContents of pecuniary interest return relating to member’s activities 54GRegistrar 54HResponsibility of members 54IDefinition of Registrar

Part 5:
Council-controlled organisations and council organisations

55Outline of Part

Establishment

56Consultation required before council-controlled organisation established

Directors

57Appointment of directors 58Role of directors of council-controlled organisations 59Principal objective of council-controlled organisation 60Decisions relating to operation of council-controlled organisations 60ASignificant decisions of council-controlled organisations affecting land or water 61Activities undertaken on behalf of local authorities 62Prohibition on guarantees, etc 63Restriction on lending to council-controlled trading organisation

Council-controlled organisation planning

64Statements of intent for council-controlled organisations 64AShareholders may require additional plans 64BStatement of expectations

Monitoring and reporting

65Performance monitoring 66Half-yearly or quarterly reports 67Annual report 67AExtension of time limit for 2019/20 financial year annual reports: COVID-19 68Content of reports on operations of council-controlled organisations 69Financial statements and auditor's report 70Auditor-General is auditor of council-controlled organisations 71Protection from disclosure of sensitive information 71AApplication of Part to listed companies 71BApplication of Part to water organisations 72Application of Act to related companies

Transfer of undertakings

73Transfer of undertakings to council-controlled organisations

Application of Local Government Official Information and Meetings Act 1987 and Ombudsmen Act 1975 to council-controlled organisations

74Official information

Part 6:
Planning, decision-making, and accountability

75Outline of Part

Planning and decision-making

Significance and engagement policy

76AASignificance and engagement policy

Decision-making

76Decision-making 77Requirements in relation to decisions 78Community views in relation to decisions 79Compliance with procedures in relation to decisions 80Identification of inconsistent decisions 81Contributions to decision-making processes by Māori

Consultation

Community outcomes

91Process for identifying community outcomes 92Obligation to report against community outcomes

Planning

93Long-term plan 93AUse of special consultative procedure in relation to long-term plan 93BPurpose of consultation document for long-term plan 93CContent of consultation document for adoption of long-term plan 93DContent of consultation document for amendment of long-term plan 93DAAmendments to long-term plan after severe weather events 93DAAmendments to long-term plan during outbreak of COVID-19 93EAdditional content of consultation document for adoption or amendment of long-term plan where section 97 applies to proposed decision 93FForm and manner of presentation of consultation document 93GInformation to be adopted by local authority in relation to long-term plan and consultation document 94Audit of long-term plan 94ALong-term plan amended during recovery from severe weather events 94ALong-term plan amended during outbreak of COVID-19 95Annual plan 95AAA2023/2024 annual plan due date 95APurpose and content of consultation document for annual plan 95BCombined or concurrent consultation on long-term plan and annual plan 96Effect of resolution adopting long-term plan or annual plan 97Certain decisions to be taken only if provided for in long-term plan

Reporting

98Annual report 98AExtension of time limit for 2019/20 financial year annual reports: COVID-19 99Audit of information in annual report and summary 99APre-election report

Financial management

100Balanced budget requirement 101Financial management 101AFinancial strategy 101BInfrastructure strategy 102Funding and financial policies 103Revenue and financing policy 104Liability management policy 105Investment policy 106Policy on development contributions or financial contributions 107Policy on partnerships with private sector 108Policy on remission and postponement of rates on Māori freehold land 109Rates remission policy 110Rates postponement policy 111Information to be prepared in accordance with generally accepted accounting practice

Borrowing and security

112Interpretation

Borrowing

113Prohibition on borrowing in foreign currency 114Constraints on receiver 115Rates as security 116Register of charges maintained by local authority

Protected transactions

117Protected transactions 118Certificate of compliance 119Good faith in relation to protected transactions 120Saving provision in respect of power of court

Miscellaneous provisions

121The Crown not liable for debts 122Disclosure document and loan documents to contain statement that the Crown does not guarantee financial products or loan

Part 7:
Specific obligations and restrictions on local authorities and other persons

123Outline of Part

Specific obligation to assess certain sanitary services

124Interpretation 125Requirement to assess drinking water services 126Requirements following assessment of community drinking water service 127Duty to ensure communities have access to drinking water if existing suppliers facing significant problems 127Information required in assessment of sanitary services 128Requirement to assess certain sanitary services 128Process for making assessments 129Extent of information in assessments

Obligations and restrictions relating to provision of water services

130Obligation to maintain water services: general 130AObligation to maintain water services: Watercare

Closure or transfer of small water services

131Power to close down or transfer small water services 132Eligibility to vote in referendum 133Responsibility for conduct of referendum 134Criteria for closure of water service 135Criteria for transfer of water service

Contracting out of water services

136Contracts relating to provision of water services

Joint local government arrangements and joint arrangements with other entities

137Joint local government arrangements and joint arrangements with other entities

Restrictions on disposal of parks, reserves, and endowment properties

Parks and reserves

138Restriction on disposal of parks (by sale or otherwise)139Protection of regional parks 139AFurther provision in relation to regional parks

Endowment property

140Restrictions on disposal of endowment property 141Conditions applying to sale or exchange of endowment property

Public libraries

142Obligation to provide free membership of libraries

Part 8:
Regulatory, enforcement, and coercive powers of local authorities

Powers of local authorities to make bylaws

143Outline of Part 144Bylaws Act 1910

Powers of territorial authorities to make bylaws

145General bylaw-making power for territorial authorities 146Specific bylaw-making powers of territorial authorities 147Power to make bylaws for alcohol control purposes 147ACriteria for making or continuing bylaws 147BCriteria for making resolutions relating to bylaws 147CSignage for areas in which bylaws for alcohol control purposes apply 148Special requirements for bylaws relating to trade wastes

Power of regional councils to make bylaws

149Power of regional councils to make bylaws

Power of local authorities to prescribe fees

150Fees may be prescribed by bylaw 150ACosts of development contribution objections

Bylaws proposed by local boards

150BLocal boards may propose bylaw 150CLocal board must consult on proposed bylaw 150DLocal board may propose amendment to bylaw 150ELocal board may propose revocation of bylaw 150FJoint bylaw proposals

General provisions applying to bylaws made by a local authority

151General provisions applying to bylaws made under this Act 152Effect of Building Act 2004 on bylaws 152AEffect of Food Act 2014 on bylaws 152BEffect of Fire and Emergency New Zealand Act 2017 on bylaws

The Crown bound by certain bylaws

153The Crown bound by certain bylaws 154Power of exemption

Procedure for making bylaws

155Determination whether bylaw made under this Act is appropriate 156Consultation requirements when making, amending, or revoking bylaws made under this Act 157Public notice of bylaws and availability of copies

Review of bylaws made under this Act or the Local Government Act 1974

158Review of bylaws made under this Act or the Local Government Act 1974 159Further reviews of bylaws every 10 years 160Procedure for and nature of review 160ABylaw not reviewed within specified time frame revoked 160BBylaw revocation postponed as result of outbreak of COVID-19

Transfer of bylaw-making power

161Transfer of bylaw-making power

Local authority legislation

161AWhat is local authority legislation 161BInstruments that have significant legislative effect 161COther supporting definitions

Enforcement powers

Injunctions

162Injunctions restraining commission of offences and breaches of bylaws

Removal of works

163Removal of works in breach of bylaws

Seizure of property

164Seizure of property not on private land 165Seizure of property from private land 166Conditions for exercise of warrant to seize property on private land 167Return of property seized and impounded 168Power to dispose of property seized and impounded

Powers of arrest, search, and seizure in relation to liquor

169Powers of arrest, search, and seizure in relation to alcohol bans

Matters of proof in relation to bylaws prohibiting alcohol in public place

169AProving substance is alcohol in relation to alleged breach of alcohol ban 170Conditions relating to power of search

Powers of entry

171General power of entry 172Power of entry for enforcement purposes 173Power of entry in cases of emergency 174Authority to act

Recovery for damage

175Power to recover for damage by wilful or negligent behaviour 176Costs of remedying damage arising from breach of bylaw

Administration of enforcement functions

177Appointment of enforcement officer

Powers of enforcement officers

178Enforcement officers may require certain information

Administration of enforcement may be contracted out

179Contracting out administration of enforcement

Enforcement of regional council bylaws

180Enforcement and administration of regional council bylaws

Powers in relation to private land

Construction of works

181Construction of works on private land

Powers of entry

182Power of entry to check utility services

Powers relating to owners and occupiers of land

183Removal of fire hazards 184Rights and obligations if notice given under section 183(1)

Default by owner or occupier

185Occupier may act if owner of premises makes default 186Local authority may execute works if owner or occupier defaults

Recovery of costs

187Recovery of cost of works by local authority 188Liability for payments in respect of private land

Compulsory acquisition of land

189Power to acquire land 190Compensation payable by local authority for land taken or injuriously affected

Nuisance

191Local authority not authorised to create nuisance

Powers in relation to water services and trade wastes

Water supply

192Wastage of water 193Power to restrict water supply 194Power to stop water services

Discharge of sewage and trade wastes

195Discharge of sewage 196Discharge of trade wastes

Development contributions

197AAPurpose of development contributions 197ABDevelopment contributions principles 197Interpretation

Contributions may be required by territorial authorities

Conditions relevant to requirement for contributions

200Limitations applying to requirement for development contribution

Development contributions policy

201Contents of development contributions policy 201ASchedule of assets for which development contributions will be used 202Contents of section 201 schedule 202AReconsideration process to be in development contributions policy 203Maximum development contributions not to be exceeded

Use of development contributions

204Use of development contributions by territorial authority 205Use of development contributions for reserves 206Alternative uses of development contributions for reserves 207Power to use money collected and held under Local Government Act 1974 or Resource Management Act 1991

Development agreements

207ARequest to enter development agreement 207BResponse to request for development agreement 207CContent of development agreement 207DEffect of development agreement 207ERestrictions on use of development agreement 207FAmendment or termination of development agreement

Powers to recover unpaid development contributions

208Powers of territorial authority if development contributions not paid or made

Refund of development contributions

209Refund of money and return of land if development does not proceed 210Refund of money or return of land if not applied to specified reserve purposes 211Application of other Acts

Removal orders

212Interpretation

Application of rules of court

213Application of District Court Rules to removal orders 214Scope of rules made under section 213

Application for removal order

215Application for removal order

Making of removal orders

216Circumstances when court may make removal order

Objection to making of removal order

217Right of objection 218Consideration of objections

Right of appeal

219Appeal to High Court final

Compliance with removal order

220Compliance with removal order 221Limits to power of entry to enforce compliance

Application of certain other Acts

222Provisions of Resource Management Act 1991 and Building Act 2004 continue to apply 223Relationship with Fencing Act 1978

Part 9:
Offences, penalties, infringement offences, and legal proceedings

Offences

Offences relating to water

224Offence relating to water wastage 225Offences relating to waterworks 226Liability for cost of damage

Offences relating to water meters

227Offences relating to water meters

Offences relating to water races and private drains

228Offences relating to water races

Offence relating to obstruction of enforcement officers and others

229Obstruction of enforcement officers or agents of local authority

Offences by occupiers or owners

230Offences by occupiers 231Offences in relation to notices sent to occupiers or owners

Offences relating to property damage

232Damage to local authority works or property

Miscellaneous offences

233Offence relating to advertising 234Unauthorised use of coat of arms

Offences committed by members and officers of local authorities

235Offences by members of local authorities and local boards 236Penalty for acting without warrant

Offences committed by members and officers of Remuneration Authority

237Offence by member or officer of Remuneration Authority

Offences against Act

238Offence of failing to comply with Act

Offences against bylaws

239Offences in respect of breaches of bylaws (other than alcohol bans)239ABreaches of alcohol bans

Defences

240Defence to offences under this Act

Time for filing charging document

241Time for filing charging document

Penalties

242Penalties for offences

Infringement offences

243Interpretation 244Proceedings for infringement offences 245Issue of infringement notices 245AConstables may require certain information 246Entitlement to infringement fees

Legal proceedings

Procedure

247Proceedings in District Court

Judges not disqualified

248Judges not disqualified for being ratepayers

Representation

249Representation of local authority in proceedings

Service

250Service of legal proceedings on local authority

Evidence

251Evidence of ownership, vesting, or control

Recovery of debts

252Recovery of debts

Part 10:
Powers of Minister to act in relation to local authorities

253Outline of Part 254How this Part works 255Application of this Part 256Interpretation

Ministerial powers of assistance and intervention

Minister may require information from local authority

257Minister may require information

Minister may appoint Crown Review Team

258Minister may appoint Crown Review Team 258AHow Crown Review Team appointed

Minister may appoint Crown Observer

258BMinister may appoint Crown Observer 258CHow Crown Observer appointed

Minister may appoint Crown Manager

258DMinister may appoint Crown Manager 258EHow Crown Manager appointed

Minister may appoint Commission

258FMinister may appoint Commission 258GHow Commission appointed 258HApplication of this and other enactments during Commission's term of appointment 258IMinister may postpone general election when appointing Commission 258JTiming of election following postponed election 258KLocal authority members remain in office but must not act during term of Commission 258LExtraordinary vacancy when Commission appointed or during term of Commission

Minister may call general election

258MMinister may call general election

Additional ministerial powers of assistance and intervention: water services

Minister may appoint Crown facilitator—water services

258MAMinister may appoint Crown facilitator—water services 258MBHow Crown facilitator—water services is appointed

Minister may appoint Crown commissioners—water services

258MCMinister may appoint Crown commissioners—water services 258MDHow Crown commissioners—water services are appointed

Obligation to consult

258MEMinister must consult

General provisions applying to Ministerial powers conferred under subparts 1 and 1A

258NMinister may consult any person 258OMinister must publish list in Gazette 258PMinister must have regard to published list 258QNotice of proposed appointment of Ministerial body 258RNotice to local authority of proposed general election 258SNotification of appointment of Ministerial body 258TNotification of change of membership of Ministerial body 258UFinal report of Ministerial body 258VRemuneration and expenses of Ministerial appointees 258WRecovery of expenses 258XMinister may terminate Ministerial body or Ministerial appointee 258YProtection from liability for Ministerial appointees 258ZDisclosure of information held by local authority 258ZADecisions and directions remain in force

Information required for purpose of advising Minister

258ZBSecretary may require water services information

Part 11:
Regulations, other Orders in Council, and rules

Regulations

259Regulations 259ALevy to fund rules for performance measures 259BPower to refund levy 259CAuditor-General must report on disclosures made under certain regulations 259DRegulations may incorporate financial reporting standards by reference 259EEffect of amendments to, or replacement of, standards incorporated by reference in regulations 259FProof of standards incorporated by reference 259GEffect of expiry or revocation of standards incorporated by reference 259HAccess to standards incorporated by reference 259IApplication of Legislation Act 2019 to standards incorporated by reference 259JApplication of Regulations (Disallowance) Act 1989 to standards incorporated by reference

Other Orders in Council

260Amendment of Schedule 2 by Order in Council 261Circumstances when Order in Council may extend time or validate action taken

Rules for performance measures

261APurpose of rules specifying performance measures 261BSecretary must make rules specifying performance measures 261CStatus of rules

Incorporation by reference

261DIncorporation of documents by reference in rules 261EProof of material incorporated by reference 261FEffect of change to, or expiry of, material incorporated by reference 261GConsultation on proposal to incorporate material by reference 261HAccess to material incorporated by reference

Rules establishing requirements of form

261ISecretary may make rules establishing requirements of form

Part 12:
Consequential amendments, repeals, revocations, transitional provisions, and savings

Consequential amendments, repeals, and revocations

262Consequential amendments 263Water services 264Amendment to Personal Property Securities Act 1999 265New Schedule added to Receiverships Act 1993 266Repeals 267Repeal of enactments relating to special consultative procedure 268Repeal of Local Government (Prohibition of Liquor in Public Places) Amendment Act 2001 269Repeal of spent local Acts 270Repeal of provisions relating to regional parks of Wellington Regional Council 271Lake Taupo Regulations 1976 272Revocations

Transitional provisions

273First triennial agreement 274First local governance statement 275First policy on appointment of directors 276First statement of intent and report and accounts of existing local authority trading enterprises 277First statement of intent of other council-controlled organisations 278First policy on significance 279Long-term council community plan 280Long-term plan for period beginning on 1 July 2006 281Annual plan 282Certain decisions to be taken only if provided for in annual plan or special consultative procedure used 283Annual reports 284First annual plan 285First assessment of water and sanitary services 286Waste management plan 287Special consultative procedure 288Decision-making processes commenced before enactment 289Special orders 289ASpecial orders on or after 1 July 2003 290Development contributions 291Reorganisation proposals 292Existing charges 293Bylaws 294Standing orders 295Communities and community boards 296Chief executive 297Members of Commission 298Community trusts 299Borrowing from sinking fund 300Cancellation of part of loan in respect of which sinking fund is held 301Consent required for release of sinking fund 302Provisions relating to Public Trust and Board of Trustees of National Provident Fund 303Public Bodies Leases Act 1969 304Sale of land purchased for commercial or industrial purposes 305Local Authorities (Employment Protection) Act 1963 306Local Authorities Loans Act 1956 307Existing proceedings 308Existing causes of action

Savings

309Saving 310Saving in respect of bylaws of Transit New Zealand 311Savings in respect of bylaws made in respect of government roads 312Savings and validation in respect of remuneration, allowances, and expenses of elected members 313Saving in respect of Infrastructure Auckland 314Prohibition of vehicles and consumption or possession of intoxicating liquor in public place

Schedule 1AA:
Application, savings, and transitional provisions

Schedule 1:
Acts under which responsibilities, powers, and duties are conferred or imposed on Minister of Local Government and Secretary for Local Government

Schedule 2:
Local authorities

Schedule 3:
Reorganisation of local authorities

Schedule 3A:
Establishment or reorganisation of local board areas in unitary authority districts

Schedule 4:
Provisions relating to Local Government Commission and its proceedings

Schedule 5:
Appeals against decisions of Local Government Commission

Schedule 6:
Constitution of communities

Schedule 7:
Local authorities, local boards, community boards, and their members

Schedule 8:
Statements of intent for council-controlled organisations

Schedule 9:
Council-controlled organisations and transfer of undertakings

Schedule 10:
Long-term plans, annual plans, and annual reports

Schedule 11:
Matters relating to rates relief on Māori freehold land

Schedule 12:
Conditions of constructing or undertaking works on private land without the owner's consent

Schedule 13:
Methodology for calculating development contributions

Schedule 13A:
Procedure relating to development contribution objections

Schedule 14:
Procedure for making removal orders

Schedule 15:
Powers of Minister

Schedule 16:
Consequential amendments

Schedule 17:
New Schedule of Receiverships Act 1993

Schedule 18:
Enactments repealed

Schedule 19:
Local Acts repealed

Schedule 20:
Orders in Council revoked

Local Government Act 2002

Specific obligations and restrictions on local authorities and other persons - Obligations and restrictions relating to provision of water services - Joint local government arrangements and joint arrangements with other entities

137: Joint local government arrangements and joint arrangements with other entities

You could also call this:

"Working together: councils and other groups making joint plans"

Illustration for Local Government Act 2002

A law called the Local Government Act 2002 has a part that was repealed. This means it is no longer a law. It was repealed on 27 August 2025 by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025. You can find more information about this change in the law by looking at the Local Government (Water Services) (Repeals and Amendments) Act 2025.

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This page was last updated on 6 October 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM172944.

Topics:

Government and voting > Local councilsEnvironment and resources > Town planning

136: Contracts relating to provision of water services, or

"Rules about contracts for water services are no longer a law"

138: Restriction on disposal of parks (by sale or otherwise), or

"Parks can't be sold or given away without asking people first"

Part 7Specific obligations and restrictions on local authorities and other persons
Obligations and restrictions relating to provision of water services: Joint local government arrangements and joint arrangements with other entities

137Joint local government arrangements and joint arrangements with other entities (Repealed)

Notes

Section 137: repealed, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).