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Local Government (Water Services) Act 2025

Provision of water services: operational matters - Development contributions

118: Basis on which water organisation may require development contributions

You could also call this:

"When you need to pay towards new water services for your development"

Illustration for Local Government (Water Services) Act 2025

A water organisation can ask you for a development contribution if your development needs new or bigger assets to provide water services. This means the organisation has to spend money on new infrastructure for water services, or they have to pay a development contribution to a territorial authority. You can be asked for a development contribution even if the organisation spent money on infrastructure before your development started.

The water organisation can consider how your development will affect their services, along with other developments in the area. This is called the cumulative effect, which means they look at how all the developments together will impact their services.

If you want to compare this to an older law, you can look at s 199 of the 2002 No 84 act to see the differences.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004451.

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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"

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119: Development contributions policy, or

"Rules for water organisations to charge developers for new water services"

Part 3Provision of water services: operational matters
Development contributions

118Basis on which water organisation may require development contributions

  1. A water organisation may require development contributions if—

  2. the effect of the development is to require new or additional assets or assets of increased capacity for the purposes of providing water services; and
    1. as a consequence, the water organisation—
      1. incurs capital expenditure to provide appropriately for water services infrastructure; or
        1. is liable to pay a development contribution to a territorial authority.

        2. This section does not prevent a water organisation from requiring a development contribution that is to be used to pay, in full or in part, for capital expenditure already incurred by the water organisation or a territorial authority in anticipation of the development.

        3. In subsection (1), effect includes the cumulative effects that a development may have in combination with other developments.

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