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Local Government (Water Services) Act 2025

Structural arrangements for providing water services - Water organisations - Water organisations: establishment and ownership

47: Territorial authorities with existing contracts, etc, relating to water services

You could also call this:

"Rules for councils with existing water service contracts when setting up a water organisation"

Illustration for Local Government (Water Services) Act 2025

If you are a territorial authority that wants to establish a water organisation, become a shareholder in one, or transfer more responsibilities to one under section 15, and you already have a contract with someone else about water services, this section applies to you. You have contracts with other people or groups to provide water services. When you make changes, you need to think about how these contracts will work with your water organisation.

If the other party in your contract is a Māori group, like an iwi or hapū, you will work together to figure out how the contract applies to your water organisation. A Māori third party is an iwi, hapū, or other Māori organisation that you have a contract with.

In other cases, it is up to you to consider how each of your existing contracts will apply to your water organisation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1005770.

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Part 2Structural arrangements for providing water services
Water organisations: Water organisations: establishment and ownership

47Territorial authorities with existing contracts, etc, relating to water services

  1. This section applies to a territorial authority that—

  2. proposes to—
    1. establish a water organisation; or
      1. become a shareholder in a water organisation; or
        1. transfer additional responsibilities to a water organisation under section 15; and
        2. has an existing contract, agreement, or arrangement with a third party that relates to providing water services.

          1. The territorial authority and a third party that is a Māori third party must together determine how the contract, agreement, or arrangement will apply to the water organisation.

          2. In all other cases, the territorial authority must consider how each existing contract, agreement, or arrangement will apply to the water organisation.

          3. In this section, Māori third party means a third party that is an iwi, hapū, or other Māori organisation.