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Resource Management Act 1991

Designations and heritage orders - Designations

186: Compulsory acquisition powers

You could also call this:

"When the government needs your land for a big project, they can take it and pay you for it"

Illustration for Resource Management Act 1991

You can be forced to sell your land if it is needed for a big project. This can happen if a network utility operator wants to use your land for a project that is very important to New Zealand, as defined in section 39AAB of the Public Works Act 1981. The Minister for Land Information must agree to this. If the Minister agrees, the land will be taken from you and given to the network utility operator. You cannot stop this from happening, but you may be able to get some money for your land. The network utility operator must pay for your land, and they must also pay any costs that the Minister has to pay. Some land is protected, like land that is important to Māori people. This land cannot be taken without special permission. If you have a lease on some land, that lease can also be taken, just like the land itself. The Minister for Land Information is in charge of making sure that the network utility operator pays for the land and any costs. If the network utility operator does not pay, the Minister can take them to court to get the money. The rules about taking land for big projects are in the Public Works Act 1981, and those rules apply to network utility operators too.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM236702.

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Housing and property > Land useGovernment and voting > Government departments
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Part 8Designations and heritage orders
Designations

186Compulsory acquisition powers

  1. A network utility operator that is a requiring authority may apply to the Minister for Land Information to have land required—

  2. for a project or work that is a critical infrastructure project within the meaning of section 39AAB of the Public Works Act 1981 acquired or taken under Part 2A of that Act, and, if the Minister for Land Information agrees, that land may be taken or acquired:
    1. for any other project or work acquired or taken under Part 2 of the Public Works Act 1981 as if the project or work were a Government work within the meaning of section 2 of that Act, and, if the Minister for Land Information agrees, that land may be taken or acquired.

      1. The effect of any Proclamation taking land for the purposes of subsection (1) shall be to vest the land in the network utility operator instead of the Crown.

      2. Land which is subject to a heritage order shall not be taken without the consent of the heritage protection authority.

      3. Any land held under any enactment or in any other manner by the Crown or a local authority may, with the consent of the Crown or that authority and on such terms and conditions (including price) as may be agreed, be set apart for a project or work of a network utility operator in the manner provided in sections 50 and 52 of the Public Works Act 1981 (with the necessary modifications), but the setting apart shall not be subject to sections 40 and 41 of that Act. Any land so set apart shall vest in the network utility operator.

      4. Any claim for compensation under the Public Works Act 1981 in respect of land acquired or taken in accordance with this section shall be made against the Minister for Land Information.

      5. All costs and expenses incurred by the Minister for Land Information in respect of the acquisition or taking of land in accordance with this section (including any compensation payable by the Minister) shall be recoverable from the network utility operator as a debt due to the Crown.

      6. Sections 40 and 41 of the Public Works Act 1981 shall apply to land acquired or taken in accordance with this section as if the network utility operator concerned were the Crown.

      7. This section does not apply if—

      8. the network utility operator is a responsible SPV; and
        1. the land is protected Māori land.

          1. For the purposes of this section, an interest in land, including a leasehold interest, may be acquired or taken as if references to land were references to an interest in land.

          Notes
          • Section 186(1): replaced, on , by section 12(1) of the Public Works (Critical Infrastructure) Amendment Act 2025 (2025 No 46).
          • Section 186(5): amended, on , by section 12(2) of the Public Works (Critical Infrastructure) Amendment Act 2025 (2025 No 46).
          • Section 186(6): amended, on , by section 12(3) of the Public Works (Critical Infrastructure) Amendment Act 2025 (2025 No 46).
          • Section 186(7A): inserted, on , by section 161 of the Infrastructure Funding and Financing Act 2020 (2020 No 47).