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Local Government (Water Services) Act 2025

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

44: Establishment of water organisation

You could also call this:

"Setting up a group to manage water services in a local area"

Illustration for Local Government (Water Services) Act 2025

You can have a water organisation set up by a territorial authority to take care of water services in their area. This means the authority is handing over the job of providing water services to the organisation. The authority can do this on its own or with other territorial authorities.

You can also have a situation where a territorial authority joins a water organisation that another authority has already set up. This allows the authority to transfer the responsibility of providing water services in their district to the organisation. The authority can become a shareholder in the organisation.

A territorial authority has some options when it comes to water organisations. It can set up one organisation or multiple organisations, and it can do this alone or with other authorities. The authority can also set up an organisation without owning any part of it.

When a territorial authority sets up a water organisation, it must prepare some important documents called foundation documents. These documents are necessary for the organisation to function properly. The authority must make sure these documents are ready.

A regional council is not allowed to set up a water organisation, but it can become a shareholder in one that has been set up by a territorial authority in its region, see subpart 2. This means the regional council can have a say in the organisation, but it cannot establish one itself. The council's role is limited to becoming a shareholder in an existing 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=LMS1008527.

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Government and voting > Local councilsEnvironment and resources > Food and water safety
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43: Application of this Act to water services role of regional councils, or

"How this law about water services applies to regional councils in New Zealand."

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45: Nature and ownership of water organisation, or

"Who owns and runs a water organisation in New Zealand"

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

44Establishment of water organisation

  1. A territorial authority may establish a water organisation for the purpose of transferring to the organisation responsibility for providing water services in the authority’s district.

  2. A territorial authority may, for the purpose of transferring responsibility for providing water services in its district, become a shareholder in a water organisation that 1 or more other territorial authorities have established under subsection (1).

  3. A territorial authority may do any of the following:

  4. establish a water organisation alone or jointly with 1 or more other territorial authorities:
    1. establish, or become a shareholder in, more than 1 water organisation:
      1. establish a water organisation without becoming a shareholder in it (because, for example, the organisation is owned by the trustees of 1 or more consumer trusts).

        1. A territorial authority must prepare foundation documents for a water organisation it establishes under this section.

        2. A regional council must not establish a water organisation, but it may become a shareholder in a water organisation established by a territorial authority whose district is located in the council’s region (see subpart 2).