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Local Government (Water Services) Act 2025

Provision of water services: operational matters - Development contributions

116: Limits on power to require development contributions

You could also call this:

"Rules about when water organisations can ask for development contributions to help pay for water services"

Illustration for Local Government (Water Services) Act 2025

When a water organisation asks you for a development contribution, there are limits to what they can do. They cannot ask you for money if you will already pay for the water services infrastructure yourself. They also cannot ask you for money if they have already received a development contribution for the same thing from you or someone else.

If someone else has paid or will pay for the water services infrastructure, the water organisation cannot ask you for money either. However, if your development project gets bigger or more complex, the water organisation might ask you for more money to cover the extra costs.

You can choose to give the water organisation extra money for water services infrastructure if you want to. The water organisation can also ask you for a development contribution if they will use other income, like water services charges, to help pay for the infrastructure. They can do this if you have paid or will pay rates or water services charges for the infrastructure.

A territorial authority cannot ask you for a development contribution if a water organisation has already asked you for and received one for the same thing.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004448.

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115: Information sharing for development contributions, or

"Water organisations and councils must share information to help pay for new water services."

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117: Consequential limits on territorial authority’s policy on development contributions or financial contributions, or

"Rules for councils when water services are transferred to a new organisation"

Part 3Provision of water services: operational matters
Development contributions

116Limits on power to require development contributions

  1. A water organisation must not require a development contribution for water services infrastructure if, and to the extent that,—

  2. the developer will fund or otherwise provide for the same water services infrastructure; or
    1. the water organisation or a territorial authority has already required and received a development contribution for the same purpose in respect of the same work, whether on the granting of a building consent or a certificate of acceptance; or
      1. a third party has funded or provided, or undertaken to fund or provide, the same water services infrastructure.

        1. Despite subsection (1)(b), a water organisation may require an additional development contribution for the same purpose if the additional contribution is required to reflect an increase in the scale or intensity of the development since a previous contribution was required.

        2. This section does not prevent a water organisation from accepting from a person, with that person’s agreement, additional contributions for water services infrastructure.

        3. This section does not prevent a water organisation from requiring a development contribution if—

        4. income from the following is being used or will be used to meet a proportion of the capital costs of the water services infrastructure for which the development contribution will be used:
          1. water services charges (see subpart 1 of Part 3):
            1. interest and dividends from investments:
              1. borrowings:
                1. proceeds from asset sales; or
                2. a person required to make the development contribution has paid or will pay rates or water services charges in respect of the water services infrastructure.

                  1. A territorial authority must not require a development contribution or financial contribution for the same purpose for which, and to the extent that, a water organisation has required and received a development contribution.

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