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Local Government (Water Services) Act 2025

Structural arrangements for providing water services - Water organisations - Governance of water organisations: consumer trusts

54: Trust deed: specific limitations

You could also call this:

"Rules to stop councils controlling consumer trust decisions"

Illustration for Local Government (Water Services) Act 2025

When a territorial authority sets up a consumer trust, it cannot include rules that let the authority control the trustees. You cannot be told who to appoint, remove, or monitor as a trustee. The authority also cannot give directions or instructions to the trustees. However, the authority can ask the trustees to consult with them if it is necessary for the authority to meet its legal obligations.

A consumer trust must follow the rules set out in the Trusts Act 2019. It must also comply with the Local Government Official Information and Meetings Act 1987 as if it were a local authority. This means the trust must do things in a way that is open and transparent, just like a local authority would.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004346.

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Government and voting > Local councilsEnvironment and resources > Food and water safety
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53: Trust deed: general limitation, or

"Rules in a trust deed must follow the law, or they don't count"

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"Getting Secretary approval for a consumer trust deed to follow the rules"

Part 2Structural arrangements for providing water services
Water organisations: Governance of water organisations: consumer trusts

54Trust deed: specific limitations

  1. The territorial authority that establishes a consumer trust must not include in the trust deed a provision that enables the authority to—

  2. appoint, remove, or monitor trustees; or
    1. give any direction or instruction to trustees; or
      1. require the trustees to consult the authority on their roles and responsibilities as shareholders in the water organisation, unless consultation is necessary to enable the authority to meet its statutory obligations.

        1. Except as otherwise provided in this Act, a consumer trust—

        2. must operate in accordance with the Trusts Act 2019; and
          1. must comply with the Local Government Official Information and Meetings Act 1987 as if it were a local authority, and that Act applies accordingly with all necessary modifications.