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Local Government (Water Services) Act 2025

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

145: Refund of money and return of land if development does not proceed

You could also call this:

"Getting your money back if a development project does not go ahead"

Illustration for Local Government (Water Services) Act 2025

If you have paid a development contribution for a project, you might get your money back if the project does not go ahead. This can happen if the resource consent for the project lapses under section 125 of the Resource Management Act 1991, or is surrendered under section 138 of that Act. It can also happen if the building consent for the project lapses under section 52 of the Building Act 2004.

You might also get your money back if the project does not proceed, or if the water organisation does not provide the water services infrastructure that the development contribution was for. If you have paid a development contribution that was transferred from a territorial authority to a water organisation, you can still get your money back if the project does not go ahead. The water organisation must return your development contribution, but they can keep some of the money to cover their costs.

The water organisation can keep a portion of the contribution to cover the costs they incurred for the project and its discontinuance. They must return the rest of the money to you, or to your personal representative. This rule applies to development contributions that you have made for a project that is not going ahead.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004483.

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144: Powers of water organisation if development contributions not made, or

"What happens if you don't pay development contributions when building something: a water organisation can take action."

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146: Crown exempt from development contributions, or

"The Government doesn't have to pay fees for using water services, but it can choose to pay if it wants to."

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

145Refund of money and return of land if development does not proceed

  1. This section applies if a consent holder has made a development contribution required by a water organisation and—

  2. the resource consent for the development—
    1. lapses under section 125 of the Resource Management Act 1991; or
      1. is surrendered under section 138 of that Act; or
      2. the building consent for the development lapses under section 52 of the Building Act 2004; or
        1. the development or building in respect of which the resource consent or building consent was granted does not proceed; or
          1. the water organisation does not provide the water services infrastructure for which the development contribution was required.

            1. This section also applies if—

            2. a consent holder has made a development contribution that was required by a territorial authority and transferred to a water organisation; and
              1. 1 or more of paragraphs (a) to (d) of subsection (1) apply.

                1. The water organisation—

                2. must return to the consent holder, or to their personal representative, any development contribution that the consent holder has made in relation to the relevant development; but
                  1. may retain a portion of the contribution of a value equivalent to the costs incurred by the water organisation or a territorial authority in relation to the development or building and its discontinuance.

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