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Local Government (Water Services) Act 2025

Planning, reporting, and financial management - Planning - Water services strategy

231: Water services strategy for new water organisation

You could also call this:

"New water organisations must create a plan to manage water services as soon as possible after they start."

Illustration for Local Government (Water Services) Act 2025

When a new water organisation is set up, it must create a water services strategy. You need to do this as soon as possible after the organisation is established, but before the start of its first financial year. The strategy is like a plan that outlines how the organisation will manage water services.

The water organisation and its shareholders can agree on some details, such as when the strategy will start and how long it will last. They can also decide to align the strategy with the shareholders' long-term plans, as outlined in section 93 of the LGA 2002. This means the strategy might start on a different date or last for a different amount of time.

If the water organisation is set up before its first strategy is in place, the territorial authorities that established it must agree on some temporary arrangements. These arrangements will apply until the first strategy is in place, and they might include using parts of the authorities' own plans or strategies. The temporary arrangements can also include using other business planning documents to guide the organisation's operations and monitor its performance.

The temporary arrangements will stop applying when the water organisation's first strategy comes into force. This means the organisation will then follow its own plan for managing water services. The water organisation must prepare and adopt its strategy under section 230, which outlines the requirements for creating a water services strategy.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004664.

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230: Water services strategy, or

"Plan for managing water services"

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232: Purpose of water services strategy, or

"What a water company plans to do and how it will work to provide good water services to you."

Part 4Planning, reporting, and financial management
Planning: Water services strategy

231Water services strategy 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 230, the water organisation must prepare and adopt a water services strategy under section 230—

  3. as soon as practicable after the date on which the water organisation is established; but
    1. before the start of the first financial year to which the strategy relates.

      1. The water organisation and the shareholders of the water organisation may agree to 1 or more of the following matters:

      2. that the water services strategy of the water organisation may come into force on a date other than the first day of a financial year:
        1. that the water services strategy may cover a period other than what would otherwise be required under this Act—
          1. due to the strategy having come into force on a date other than the first day of a financial year; or
            1. to enable the water organisation’s next water services strategy to align with the timing requirements for the shareholders’ long-term plans under section 93 of the LGA 2002.

            2. If a water organisation is established before its first water services strategy is in force, each territorial authority that establishes the water organisation must agree with the following parties the interim arrangements that will apply until the first water services strategy is in force:

            3. each other shareholder of the water organisation (if any):
              1. the board of the water organisation or, if the board has not yet been appointed, a representative of the water organisation.

                1. The interim arrangements may include any of the following:

                2. relevant parts of the long-term plan of each territorial authority that is a shareholder in the water organisation remain in force until the water organisation’s water services strategy comes into force:
                  1. relevant parts of the water services strategy of each territorial authority that is a shareholder in the water organisation remain in force until the water organisation’s water services strategy comes into force:
                    1. preparing or relying on any other business planning or budgetary documents that can—
                      1. guide the water organisation’s operations; and
                        1. be used for the purposes of monitoring and reporting on the water organisation’s performance.

                        2. The interim arrangements cease to apply when the water organisation’s first water services strategy comes into force.