Plain language law

New Zealand law explained for everyone

Local Government (Water Services) Act 2025

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

236: Process for making water services strategy: water organisations

You could also call this:

"How water organisations make a plan for providing water services"

Illustration for Local Government (Water Services) Act 2025

When a water organisation makes a water services strategy, you need to follow some steps. The organisation must prepare a draft strategy and give it to its shareholders to comment on. The shareholders then decide how they will be involved in making the final strategy.

The water organisation must think about the comments from its shareholders and do what they say. The organisation must also follow the rules set by its shareholders. The final strategy must be given to the shareholders before it starts.

If a water organisation is owned by consumer trusts, it must also talk to the local council about its strategy. This includes talking about how the organisation will respond to the council's plans and any big issues with water infrastructure. You can find more information about this in the LGA 2002 and section 230.

The water organisation does not always have to ask the community for their thoughts on the strategy. But it might have to if its significance and engagement policy says so, or if the shareholders want it to. The organisation must have a policy that says how it will decide what is important and how it will talk to people.

Sometimes, the water organisation must ask the public for their thoughts, like if it wants to transfer ownership of a big water asset or make a big change to the services it provides. The organisation or its shareholders must do this consultation. The organisation's policy must say how it will decide what assets are important and what changes are big.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004669.

Topics:
Government and voting > Local councilsEnvironment and resources > Food and water safety
Previous

235: Process for making water services strategy: territorial authorities, or

"How councils make a plan for water services and consult with their community"

Next

237: Amending water services strategy: territorial authority, or

"Changing the plan for water services in your area"

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

236Process for making water services strategy: water organisations

  1. A water organisation must—

  2. prepare a draft water services strategy in accordance with—
    1. this Part; and
      1. the water organisation’s significance and engagement policy; and
      2. provide the draft strategy to the organisation’s shareholders for comment no later than—
        1. 1 March in the financial year before the first financial year to which the draft strategy relates; or
          1. any other date agreed with the shareholders.

          2. The shareholders of the water organisation must determine the nature of their involvement in preparing and finalising the water services strategy, including whether—

          3. the shareholders will be able to, as necessary,—
            1. provide comments on the draft strategy:
              1. require the water organisation to amend the draft strategy:
                1. approve the final strategy; or
                2. the shareholders will be able to provide comments on the draft water services strategy but will not have the power to require changes or approve the final strategy.

                  1. However, if a shareholder that is a territorial authority is able to approve the final strategy, it must comply with the decision-making requirements in the LGA 2002.

                  2. The shareholders of the water organisation must ensure that information on the nature of their involvement in preparing and finalising the water services strategy under subsection (2) is included in the water organisation’s foundation documents.

                  3. The water organisation must—

                  4. consider any comments the shareholders provide on the draft strategy; and
                    1. comply with any requirements set by shareholders in accordance with the approach determined in the water organisation’s foundation documents; and
                      1. adopt the final water services strategy in accordance with section 230; and
                        1. provide the final water services strategy to shareholders before the start of the first financial year to which the strategy relates.

                          1. When consulting its shareholders under this section, a water organisation that is owned by the trustees of 1 or more consumer trusts must also consult each territorial authority in whose district the water organisation operates on the following content of the organisation’s water services strategy:

                          2. the territorial authority’s resource management planning and land use planning in the water organisation’s service area, including how the water organisation intends to respond to any requirements in the organisation’s statement of expectations (see section 227(1)(b)):
                            1. the information relating to expected significant water infrastructure issues that is included in the strategy under clause 2(3) of Schedule 3.

                              1. Except as required under subsection (8) or (9), this Act does not require a water organisation or its shareholders to consult communities or consumers on a draft water services strategy.

                              2. However,—

                              3. a water organisation’s significance and engagement policy may require such consultation; and
                                1. if the shareholders of a water organisation require the water organisation to consult on any proposals contained in a draft water services strategy (in addition to the shareholders commenting on the strategy), the water organisation must consult in accordance with its significance and engagement policy.

                                  1. Public consultation must be undertaken on a proposal in a water services strategy to—

                                  2. transfer ownership or control of a strategic water services asset (under section 20(3)); or
                                    1. receive a transfer of ownership or control of a strategic water services asset; or
                                      1. make a significant change to the level of service provided in relation to any water service.

                                        1. Public consultation under subsection (9) must be undertaken by—

                                        2. the organisation’s shareholders; or
                                          1. the organisation, if directed by the shareholders.

                                            1. A water organisation must ensure that its significance and engagement policy addresses all matters necessary for determining—

                                            2. whether a water services asset is a strategic water services asset; and
                                              1. whether a proposed change to the level of service is a significant change; and
                                                1. how to comply with subsections (9) and (10).