111Purpose of development contributions

1. The purpose of this subpart is to enable water organisations to recover from those persons undertaking development a fair, equitable, and proportionate portion of the total cost of capital expenditure necessary to service an additional or increased demand on water services infrastructure over the long term.

2. A water organisation must only recover a cost under this subpart if it incurs the cost in relation to water services infrastructure that it owns or will own.

3. To avoid doubt, a water organisation may recover costs under this subpart for capital expenditure incurred by a territorial authority before it transferred the responsibility for the relevant water services infrastructure to the water organisation under a transfer agreement.