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Local Government (Water Services) Act 2025

Schedule 1: Transitional, savings, and related provisions

You could also call this:

"Rules for when water services change, like what happens to employees and how providers report their work"

Illustration for Local Government (Water Services) Act 2025

When a water service provider changes, some employees might move to a new provider. You need to know what happens to these employees. The chief executive of the old provider must identify which employees will move to the new provider. If an employee gets a job offer from the new provider, they might not get any payment or benefit if they lose their job. This only happens if the new job is similar to their old job and has the same or better pay and conditions.

Some rules apply to water service providers and how they report on their work. They must prepare a water services strategy and an annual report. These documents must be done on time and follow certain rules. You can find more information about these rules in section 230 or section 231.

There are also rules about how water service providers work with councils and other organisations. If a council-controlled organisation wants to provide water services, it must follow certain rules. You can find more information about these rules in the Local Government (Auckland Council) Act 2009.

Some notifications and plans made under the old rules will still be valid. However, new rules might apply in some cases. You can find more information about these rules in section 171(4) or section 181(5) of the LGA 2002.

Councils can amend their long-term plans to implement changes to water services. They might not need to consult with the community or have the amendments audited. However, they must follow certain rules and consider the community's views. You can find more information about these rules in section 93 of the LGA 2002.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1005039.

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Schedule 2: Contents of transfer agreements, or

"What's included in an agreement to transfer water services to a new organisation"

1Transitional, savings, and related provisions Empowered by s 5

1Provisions relating to this Act as enacted

Transfer of employees

1Identification of affected employees

  1. This clause applies when the responsibility for providing water services transfers from one water service provider (provider A) to another water service provider (provider B) (the transfer).

  2. Before the transfer takes place, the chief executive of provider A must identify—

  3. those employees of provider A whose employment at provider A relates more to the water services being transferred to provider B than to the functions that provider A will retain after the transfer; and
    1. those employees of provider A who are not identified under paragraph (a) but whose employment with provider A will cease as a result of the transfer.

      1. An employee identified under subclause (2)(a) who receives an offer of employment (whether the employee accepts the offer or not) from the chief executive of provider B is not entitled to any payment or other benefit (including redundancy), as a result of the transfer, if the offer—

      2. is for substantially the same position as the position the employee holds at provider A before the transfer; and
        1. is for employment in substantially the same general locality; and
          1. is on the same, or better, terms and conditions as the employee’s terms and conditions at provider A.

            2Continuous employment

            1. If an employee accepts an offer of employment described in clause 1(3), their employment is to be treated as continuous for the purposes of any entitlements or benefits, whether legislative or otherwise.

            2. To avoid doubt, the employment of an employee who accepts an offer of employment described in clause 1(3) by provider B does not constitute new employment for the purposes of the Holidays Act 2003 or the KiwiSaver Act 2006.

            3Application

            1. Clauses 1 and 2 only apply in relation to a transfer that takes place before the date that is 5 years after the date on which this clause comes into force.

            Act previously called Taumata Arowai–the Water Services Regulator Act 2020

            4References to previous Title

            1. Every reference in any enactment or in any document to the Taumata Arowai–the Water Services Regulator Act 2020 must, unless the context otherwise provides, be read as a reference to the Water Services Authority—Taumata Arowai Act 2020.

            2. Every reference in any enactment or in any document to Taumata Arowai–the Water Services Regulator must, unless the context otherwise provides, be read as a reference to the Water Services Authority—Taumata Arowai.

            Water services strategies

            5Timing of first water services strategies

            1. Despite Part 4 coming into force sooner,—

            2. a water service provider must prepare and adopt its first water services strategy under section 230 or 231 no later than 30 June 2027; and
              1. a water service provider’s first water services strategy must come into force on the earlier of—
                1. 1 July 2027; and
                  1. a date determined by the water service provider when it adopts the strategy.

                  2. A water service provider’s first water services strategy must—

                  3. commence on the earlier of—
                    1. 1 July 2027; and
                      1. the date determined under subclause (1)(b)(ii); and
                      2. continue in force until 30 June 2030.

                        1. However, this clause does not apply to a water organisation that is established after the date on which this clause comes into force (see section 231, which applies to a water organisation in those circumstances).

                        Water services annual report

                        6Timing of first water services annual report

                        1. Despite Part 4 coming into force sooner, a water service provider’s first water services annual report under section 243, 244, or 245 must be prepared in accordance with this clause.

                        2. If a water service provider's first water services strategy comes into force on or before 31 December 2026, the provider must prepare its first water services annual report for the period—

                        3. starting on the date on which the water services strategy comes into force; and
                          1. ending on 30 June 2027.

                            1. If a water service provider’s first water services strategy comes into force on or after 1 January 2027, the provider must prepare its first water services annual report for the period—

                            2. starting on the date on which the water services strategy comes into force; and
                              1. ending on 30 June 2028.

                                1. However, this clause does not apply to a water organisation that is established after the date on which this clause comes into force (see section 244, which applies to a water organisation in those circumstances).

                                Alternative form of funding impact statement

                                7Alternative form of funding impact statement

                                1. This clause applies if, when a water service provider prepares a water services strategy or a water services annual report, regulations have not been made to prescribe the form of a funding impact statement for the purposes of (as applicable)—

                                2. clause 5(2)(e) of Schedule 3; or
                                  1. clause 5 of Schedule 4.

                                    1. A water service provider must provide a funding impact statement in the following form set out in Schedule 2 of the Local Government (Financial Reporting and Prudence) Regulations 2014:

                                    2. for the purposes of preparing a water services strategy, form 2; or
                                      1. for the purposes of preparing a water services annual report, form 4.

                                        Council-controlled organisations as water organisations

                                        8Council-controlled organisations deemed to be water organisations

                                        1. This clause applies to a council-controlled organisation that,—

                                        2. immediately before the date on which this clause comes into force,—
                                          1. was providing water services; or
                                            1. had been established for the purpose of providing water services; and
                                            2. intends to provide water services on and after the date on which this clause comes into force.

                                              1. The council-controlled organisation is taken to be a water organisation for 6 months after the date on which this clause comes into force (see the definition of water organisation in section 4).

                                              2. The council-controlled organisation will continue to be taken to be a water organisation after the expiry of the 6-month period if, within that period, the board of the organisation adopts a document that confirms that the organisation complies with the following requirements:

                                              3. the requirement that a water organisation be a company, as set out in section 45(1) (unless exempted under section 66):
                                                1. the ownership requirements for water organisations set out in section 45(2)(a), (b), or (c) (unless exempted under section 66):
                                                  1. the role requirement set out in section 46 (unless exempted under section 66):
                                                    1. the applicable requirements of board directors set out in section 48.

                                                      1. Within 3 years after the date on which this clause comes into force, each territorial authority that established the council-controlled organisation—

                                                      2. must enter into a transfer agreement under section 12 or 15 with the organisation; or
                                                        1. if the council-controlled organisation has been disestablished and replaced with 1 or more new water organisations, must enter into a transfer agreement under section 12 with each new water organisation.

                                                          1. However, this clause does not apply to an Auckland water organisation under the Local Government (Auckland Council) Act 2009.

                                                          2. Despite subclause (5), an Auckland water organisation under the Local Government (Auckland Council) Act 2009 is taken to be a water organisation under this Act.

                                                          Existing notifications under LGA 2002

                                                          9Certain notifications under LGA 2002 remain valid

                                                          1. This clause applies to—

                                                          2. a notification provided under section 171(4) of the LGA 2002 to an owner of unoccupied land or an unoccupied building; and
                                                            1. a notification of intention to enter land provided under section 181(5) of the LGA 2002 to the owner and occupier (if any) of land.

                                                              1. If a notification is in force on the date on which this clause comes into force,—

                                                              2. the notification continues to apply despite this Act coming into force; and
                                                                1. the corresponding notice provisions in this Act do not apply.

                                                                  Amendments to long-term plans

                                                                  10Amendments to long-term plans under LGA 2002

                                                                  1. This clause applies if—

                                                                  2. a territorial authority is making, or has made, a decision that relates to transferring (to or from the territorial authority) the responsibility for providing all or part of a water service in the territorial authority’s district (a transfer decision); and
                                                                    1. as a consequence of making or having made that transfer decision, the territorial authority is considering amending its long-term plan under section 93 of the LGA 2002.

                                                                      1. The territorial authority—

                                                                      2. may amend its long-term plan, as necessary, to implement a transfer decision to transfer responsibility for providing water services to a water organisation through the transfer agreement adopted under section 12 or 15; but
                                                                        1. need not—
                                                                          1. consult on the amendments to the long-term plan under section 93(5) of the LGA 2002; or
                                                                            1. have the amendments audited under section 93D(4) or 94 of the LGA 2002.

                                                                            2. However, subclause (2)(b)(i) applies—

                                                                            3. despite anything to the contrary in the territorial authority’s significance and engagement policy; and
                                                                              1. only if the territorial authority—
                                                                                1. has already consulted on a proposal that is relevant to the transfer decision; and
                                                                                  1. is satisfied that its community has a good understanding of the implications of the proposal; and
                                                                                    1. is satisfied that it understands the community’s views on the proposal.

                                                                                    2. For the purposes of subclause (2)(a), an amendment to a long-term plan may include, for example,—

                                                                                    3. an amendment needed as a result of transferring responsibilities or water services infrastructure from the territorial authority to the water organisation, as provided in a transfer agreement:
                                                                                      1. an amendment needed as part of the interim arrangements that apply until the water organisation’s first water services strategy is in force (see section 231):
                                                                                        1. an amendment relating to the resources required to establish the water organisation.