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Local Government (Water Services) Act 2025

Provision of water services: operational matters - Development contributions - Use of development contributions

137: Use of development contributions by water organisation

You could also call this:

"Water organisations must use development contributions to build new water services, not fix old ones."

Illustration for Local Government (Water Services) Act 2025

When a water organisation gets a development contribution, they must use it for capital expenditure on water services infrastructure. This means they can use it to build or develop new infrastructure, but they cannot use it to maintain existing infrastructure. They have to use it for the specific infrastructure that the contribution was meant for.

If the rules about what infrastructure the contribution can be used for change, the water organisation might be able to use it for something different, but only if the new thing is similar to what it was originally meant for. The water organisation must follow the rules set out in section 122(1)(e)(i) and section 123(4), and make sure the schedule of assets is updated accordingly, as required by section 119(4).

The water organisation has to make sure they are using the development contribution correctly, and that they are not using it for maintenance, as stated in section 113.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004472.

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Part 3Provision of water services: operational matters
Development contributions: Use of development contributions

137Use of development contributions by water organisation

  1. A water organisation that receives a development contribution (whether received under section 113 or transferred from a territorial authority)—

  2. must use it for, or towards, the capital expenditure of the water services infrastructure for which the contribution was required, which may also include the development of the water services infrastructure; but
    1. must not use it for the maintenance of the water services infrastructure.

      1. Despite subsection (1), a water organisation may use a development contribution for or towards any assets other than those set out in the schedule of assets required by section 122(1)(e)(i) as at the time the development contribution was required if—

      2. the assets are for the same general function and purpose as those that were set out in the schedule as at the time the development contribution was required; and
        1. the schedule has been amended in accordance with section 123(4), or will be amended when the development contributions policy is next reviewed under section 119(4), to identify the assets that the development contribution has been, or is intended to be, used for or towards.

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