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Local Government (Water Services) Act 2025

Structural arrangements for providing water services - Responsibility for providing water services - Limitations on transfer agreements, contracts, and joint arrangements

20: General duty to retain ownership of infrastructure, etc

You could also call this:

"Councils must keep control of water supply infrastructure to ensure people have access to water."

Illustration for Local Government (Water Services) Act 2025

If you are a water service provider, you must not use your water services assets as security for anything. You also must not transfer your ownership of water services infrastructure or lose control of it, unless you can still meet your obligations. This means you have to keep control of the important infrastructure that provides water services in your area.

You must not restrict or stop the water supply to a property unless certain conditions apply, such as those outlined in section 214 or section 25(3) of the Water Services Act 2021. However, you can use a charge or rate that relates to providing water services as security.

There are some exceptions to these rules, such as when you are a territorial authority and you have a transfer agreement under section 12 or section 15, or when you have a contract under section 22, or a joint water service provider arrangement under section 26. If you take any action under these exceptions, you must follow your foundation documents and any transfer agreement you are a part of.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1011900.

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19: Obligation to continue water services, or

"Water service providers must keep supplying water to their area as required by law."

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"No private companies can run water services for a fee in New Zealand."

Part 2Structural arrangements for providing water services
Responsibility for providing water services: Limitations on transfer agreements, contracts, and joint arrangements

20General duty to retain ownership of infrastructure, etc

  1. A water service provider must not—

  2. use the assets of its water services networks as security for any purpose; or
    1. transfer its ownership of water services infrastructure or of any other interest in a water service; or
      1. lose control of, sell, or otherwise dispose of the significant water services infrastructure necessary for providing water services in its service area, unless it retains its capacity to meet its obligations; or
        1. in relation to a property to which the provider supplies water,—
          1. restrict the water supply, unless section 214 applies; or
            1. stop the water supply unless section 25(3) of the Water Services Act 2021 applies.

            2. Despite subsection (1)(a), a water service provider may use a charge or rate that relates to providing water services as security.

            3. Despite subsection (1)(b) and (c), a water service provider may take any of the actions set out in either or both of those paragraphs if the action is a necessary part of any of the following arrangements with that other provider:

            4. if the water service provider transferring the ownership or interest is a territorial authority, a transfer agreement under section 12 or 15:
              1. a contract under section 22:
                1. a joint water service provider arrangement under section 26.

                  1. A water service provider that is a water organisation must ensure that any action taken under subsection (3) is in accordance with—

                  2. its foundation documents; and
                    1. any transfer agreement to which the water organisation is a party.