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Local Government (Water Services) Act 2025

Structural arrangements for providing water services - Water organisations - Water organisations: establishment and ownership

45: Nature and ownership of water organisation

You could also call this:

"Who owns and runs a water organisation in New Zealand"

Illustration for Local Government (Water Services) Act 2025

When a water organisation is set up under section 44, it must be a company with a specific ownership structure. This company is set up under the Companies Act 1993. You can also have a different kind of ownership if the territorial authority gets an exemption, as described in section 64(2).

A water organisation is owned by local authorities, or local authorities and consumer trusts, or just consumer trusts. The ownership is usually by one or more of these groups.

If you own shares in a water organisation, you do not own any of its assets or debts, except what is stated in the organisation's foundation documents. Trustees who own shares can only sell them to a local authority or another consumer trust.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004332.

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Government and voting > Local councilsEnvironment and resources > Food and water safety
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44: Establishment of water organisation, or

"Setting up a group to manage water services in a local area"

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"What a water organisation is allowed to do"

Part 2Structural arrangements for providing water services
Water organisations: Water organisations: establishment and ownership

45Nature and ownership of water organisation

  1. A water organisation established under section 44 must be—

  2. a company incorporated under the Companies Act 1993 that has the ownership structure set out in subsection (2); or
    1. if the territorial authority establishing the water organisation receives an exemption of the kind described in section 64(2), a different kind of person or body with that ownership structure.

      1. A water organisation must be wholly owned by—

      2. 1 or more local authorities; or
        1. 1 or more local authorities and the trustees of 1 or more consumer trusts; or
          1. the trustees of 1 or more consumer trusts.

            1. Shares in a water organisation do not provide the shareholder with any right, title, or interest in the assets or liabilities of the water organisation other than any right, title, or interest specified in the organisation’s foundation documents.

            2. Trustees that hold shares in a water organisation may only transfer those shares to a local authority or the trustees of another consumer trust.