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Local Government (Water Services) Act 2025

Structural arrangements for providing water services - Responsibility for providing water services - Decisions about structural arrangements

27: Application

You could also call this:

"When councils want to make big changes to water services, they must follow certain rules."

Illustration for Local Government (Water Services) Act 2025

When a territorial authority wants to make a big change to how water services are provided in its area, it must follow certain rules. You can think of a big change as a "change proposal", which might involve creating a new water organisation or becoming a shareholder in one. The authority must act in accordance with sections 30 to 32 when considering its change proposal.

If another territorial authority is involved in the change proposal, they must also follow the rules. You might see this happen when authorities are working together to provide water services. They can consider how the change will affect not just their own area, but also the areas of other authorities involved.

A water organisation might also be considering a change proposal, such as entering into a significant contract under section 22 or a joint water service provider arrangement under section 26. In this case, the organisation or its shareholders must act in accordance with sections 30 to 32. The organisation's shareholders can direct it to manage the proposal, or they can manage it themselves.

When talking about change proposals, a "collective area" refers to the combined areas of the territorial authorities involved. This can include the areas of authorities that establish a water organisation or are shareholders in it, or the areas of authorities that are party to a contract or arrangement, as mentioned in sections 32 and 33.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004318.

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"Working together with other water service providers to deliver water services"

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28: Further application, or

"More rules for councils when changing water services ownership or control"

Part 2Structural arrangements for providing water services
Responsibility for providing water services: Decisions about structural arrangements

27Application

  1. This section and sections 29 to 33 apply to a territorial authority that is considering making a structural change to the provision of water services in its district by doing 1 or more of the following (change proposal):

  2. establishing a water organisation:
    1. becoming a shareholder in a water organisation established by the territorial authority or by another territorial authority:
      1. disestablishing, or changing the shareholding arrangements in, a water organisation in which the territorial authority is a shareholder:
        1. transferring responsibility for providing water services to a water organisation (or receiving a transfer back from a water organisation), including by a transfer agreement under section 12 or 15:
          1. entering into a contract under section 22 that the territorial authority determines to be a significant contract:
            1. entering into a joint water service provider arrangement under section 26 that the territorial authority determines under that section to be a significant joint water service provider arrangement.

              1. The territorial authority must act in accordance with sections 30 to 32 in relation to its change proposal.

              2. If the territorial authority is considering making a change under subsection (1)(b) or (c), all other territorial authorities that are shareholders in the relevant water organisation must act in accordance with sections 30 to 32.

              3. For the purposes of sections 30 to 33, a territorial authority may have regard not only to impacts in its own district but also, if the change proposal involves another territorial authority, to impacts in any collective area involved in the change proposal.

              4. Subsections (6) to (8) apply if a water organisation is considering a change proposal that involves the organisation entering into—

              5. a contract under section 22 that the organisation determines to be a significant contract; or
                1. a joint water service provider arrangement under section 26 that the organisation determines to be a significant joint water service provider arrangement.

                  1. The water organisation must act in accordance with sections 30 to 32 if—

                  2. none of its shareholders is a territorial authority; or
                    1. its shareholders direct the organisation to manage the proposal.

                      1. A territorial authority that is a shareholder in the water organisation must act in accordance with sections 30 to 32 if the organisation’s shareholders are managing the proposal.

                      2. For the purposes of subsection (6), the water organisation must act in accordance with sections 30 to 32 as if it were a territorial authority (and those sections apply accordingly with all necessary modifications).

                      3. In subsection (4) and sections 32 and 33, collective area means,—

                      4. in relation to a change proposal referred to in subsection (1)(a), (b), or (c), the combined districts of the territorial authorities that establish the water organisation or are shareholders in it; or
                        1. in relation to a change proposal referred to in subsection (1)(e) or (f), the combined districts of the territorial authorities that are party to the contract or arrangement.