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Local Government (Water Services) Act 2025

Planning, reporting, and financial management - Planning - Statement of expectations

225: Statement of expectations for new water organisation

You could also call this:

"What a new water organisation is expected to do"

Illustration for Local Government (Water Services) Act 2025

When a new water organisation is set up, you need to know what is expected of it. The people who own the water organisation, called shareholders, must write a statement of expectations and give it to the organisation. They have to do this as soon as possible, but no later than six months after the organisation is established.

The shareholders can also give the organisation a document that sets out what they expect from it until the statement of expectations is ready. This document is called an interim statement and it applies from the day the organisation is set up until the statement of expectations is given to the organisation. The interim statement can include what the shareholders expect from the organisation, as well as directions for how it should operate and what its priorities should be, as long as this is allowed by section 228.

The shareholders can start preparing the statement of expectations or the interim statement before the organisation is even set up. They have to follow the rules set out in section 224 when preparing the statement of expectations. The shareholders must make sure they give the statement of expectations to the organisation within the required time frame.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004656.

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Government and voting > Local councilsEnvironment and resources > Food and water safety
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224: Statement of expectations, or

"A plan outlining what shareholders expect a water organisation to achieve."

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226: Water organisation must give effect to statement of expectations, or

"Water organisations must follow the rules set by their owners."

Part 4Planning, reporting, and financial management
Planning: Statement of expectations

225Statement of expectations for new water organisation

  1. This section applies when a water organisation is established after the date on which this section comes into force.

  2. Despite anything to the contrary in section 224, the shareholders in the water organisation must prepare a statement of expectations under section 224 and provide it to the water organisation—

  3. as soon as practicable after the date on which the water organisation is established; but
    1. no later than 6 months after the date on which the water organisation is established.

      1. The shareholders may provide the water organisation with a document setting out the shareholders’ interim expectations of the water organisation (an interim statement) that applies during the period between the following:

      2. the date on which the water organisation is established:
        1. the date on which the shareholders provide the statement of expectations to the water organisation under subsection (2).

          1. In addition to the shareholders’ expectations, an interim statement may also include, to the extent permitted by section 228, either or both of the following:

          2. directions for the operation of the water organisation:
            1. priorities for the water organisation.

              1. The shareholders may start preparing the statement of expectations or an interim statement before the date on which the water organisation is established.