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Local Government (Water Services) Act 2025

Provision of water services: operational matters - Development contributions - Development contributions policy

128: Territorial authority may extend development contributions policy to water organisation

You could also call this:

"Councils can share their development contribution rules with water suppliers if they don't have their own."

Illustration for Local Government (Water Services) Act 2025

If a water organisation does not have a development contributions policy, you can agree with a territorial authority to use theirs. The territorial authority's policy must include the information required by sections 122 and 125. You will need to work together to make this happen.

When a territorial authority extends its policy, it collects development contributions on behalf of the water organisation. The territorial authority gives the contributions to the water organisation as soon as possible. The territorial authority can help with the reconsideration process or objection process, but it cannot decide the outcome or be a party to any proceedings.

The water organisation and the territorial authority must make their agreement public. They must also consult on the extended policy and consider any feedback before agreeing to it. The water organisation provides the necessary information to the territorial authority, which cannot alter it without agreement.

The agreement includes how the territorial authority will consult on and administer the water organisation's development contributions. A water organisation can operate in more than one district and agree with one or more territorial authorities to extend their policy. Even if a water organisation uses a territorial authority's policy, the contributions collected are still the water organisation's revenue.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004462.

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127: Agreement to administer development contributions policy, or

"Agreement for council to help manage water organisation's development contributions"

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Part 3Provision of water services: operational matters
Development contributions: Development contributions policy

128Territorial authority may extend development contributions policy to water organisation

  1. If a water organisation does not adopt a development contributions policy, the organisation and a territorial authority in whose district the water organisation operates may agree that the territorial authority will extend its development contributions policy to also cover the operations of the water organisation.

  2. If a territorial authority extends its development contributions policy,—

  3. the policy must contain the information required to be included in a water organisation’s policy under sections 122 and 125; and
    1. if the territorial authority collects a development contribution set by the water organisation,—
      1. for the purposes of this subpart, the contribution is required by the water organisation; and
        1. the territorial authority collects the contribution on behalf of the water organisation; and
        2. the territorial authority must provide the relevant development contributions it collects to the water organisation as soon as is reasonably practicable; and
          1. although the territorial authority may administer the reconsideration process or objection process on behalf of the water organisation, the authority must not—
            1. decide the outcome of a reconsideration requested under section 131; or
              1. be a party to any proceedings in relation to an objection made under section 133; and
              2. the water organisation and the territorial authority must make the agreement publicly available.

                1. For the purposes of subsection (1),—

                2. the territorial authority must consult on the extended policy in accordance with section 106(6) of the LGA 2002 with any necessary modifications; and
                  1. the territorial authority must advise the water organisation of the feedback received from the consultation; and
                    1. the water organisation must consider the feedback and decide whether any changes are required to the policy before agreeing to it being extended to the water organisation.

                      1. For the purposes of subsection (2)(a),—

                      2. the water organisation must provide the necessary information to the territorial authority; and
                        1. the territorial authority must not alter any of the information without the water organisation’s agreement.

                          1. An agreement under subsection (1) must include how the territorial authority will consult on (in accordance with section 106(6) of the LGA 2002) and administer the water organisation’s development contributions, including the reconsideration and objection processes.

                          2. To avoid doubt,—

                          3. a water organisation that operates in the district of more than 1 territorial authority may agree with 1 or more of those territorial authorities that the territorial authority will extend its development contributions policy to cover the operations of the water organisation; and
                            1. despite a water organisation entering into an agreement under subsection (1), this subpart applies as if the water organisation had adopted the policy (for example, the contributions collected under the policy by the territorial authority on behalf of the water organisation are the revenue of the water organisation, not of the territorial authority).