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Local Government (Water Services) Act 2025

Provision of water services: operational matters - Development contributions

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

You could also call this:

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

Illustration for Local Government (Water Services) Act 2025

If you are part of a territorial authority, you need to know what happens when responsibility for water services is transferred to a water organisation. You have to change your policy on development contributions so it no longer applies to the water services that have been transferred. This change must be made by the governing body of your territorial authority.

When you make this change, it must take effect from the earlier of two dates: when the water organisation adopts its own development contributions policy under section 119 or section 120, or when you extend your policy to the water organisation under section 128, or the end of the calendar month after the transfer agreement takes effect. You can still require development contributions for water services infrastructure if someone applies for a resource consent, building consent, or water service connection before the earlier of these two dates. This is because the change to your policy does not prevent you from doing so.

You also have to change your policy on financial contributions to remove any contributions that are for the same purpose as development contributions required by the water organisation's policy under section 119 or section 120, or your extended policy under section 128. This change must be made by the governing body of your territorial authority and does not need to follow the process in the Resource Management Act 1991. The change takes effect from the date when the water organisation adopts its development contributions policy or your policy is extended to the water organisation.

Even after you make this change, you can still require a financial contribution for water services infrastructure if someone applies for a resource consent, building consent, or water service connection before the water organisation adopts its policy or your policy is extended. This is allowed because the change to your policy does not prevent you from requiring financial contributions in these situations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004449.

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116: Limits on power to require development contributions, or

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Part 3Provision of water services: operational matters
Development contributions

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

  1. This section applies if—

  2. a territorial authority has a policy on development contributions or financial contributions that relates to water services; and
    1. responsibility for providing those water services is transferred to a water organisation under a transfer agreement.

      1. The territorial authority must amend its policy on development contributions so that it no longer applies to the water services that have been transferred to the water organisation.

      2. However, if a territorial authority and a water organisation agree to extend the territorial authority’s policy under section 128, subsection (2) does not prevent the territorial authority’s policy from containing the information required under section 128(2)(a).

      3. The amendment—

      4. must be made by resolution of the governing body of the territorial authority; and
        1. is not required to be made using the process in the LGA 2002; and
          1. must take effect from the earlier of—
            1. the date on which—
              1. the water organisation adopts its development contributions policy under section 119 or 120; or
                1. the territorial authority extends its policy to the water organisation under section 128; and
                2. the end of the calendar month after the date on which the transfer agreement takes effect.

                3. Despite subsection (4)(c), the amendment does not prevent the territorial authority from requiring a development contribution in relation to water services infrastructure if an application for a resource consent, a building consent, or a water service connection is lodged before the earlier of—

                4. the date on which—
                  1. the water organisation adopts its development contributions policy under section 119 or 120; or
                    1. the territorial authority extends its development contributions policy to the water organisation under section 128; and
                    2. the end of the calendar month after the date on which the transfer agreement takes effect.

                      1. The territorial authority must amend its policy on financial contributions to remove financial contributions that are for the same purpose as development contributions required under a development contributions policy that—

                      2. the water organisation has adopted under section 119 or 120; or
                        1. the territorial authority has extended to the water organisation under section 128.

                          1. The amendment—

                          2. must be made by resolution of the governing body of the territorial authority; and
                            1. is not required to be made using the process in the Resource Management Act 1991; and
                              1. must take effect from the date on which—
                                1. the water organisation adopts its development contributions policy under section 119 or 120; or
                                  1. the territorial authority’s development contributions policy is extended to the water organisation under section 128.

                                  2. Despite subsection (7)(c), the amendment does not prevent the territorial authority from requiring a financial contribution in relation to water services infrastructure if an application for a resource consent, a building consent, or a water service connection is lodged before the date on which—

                                  3. the water organisation adopts its development contributions policy under section 119 or 120; or
                                    1. the territorial authority’s development contributions policy is extended to the water organisation under section 128.