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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

21: Franchises and concession agreements prohibited

You could also call this:

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

Illustration for Local Government (Water Services) Act 2025

When you enter into a contract under section 22 or a joint water service provider arrangement under section 26, it cannot be a franchise or concession agreement. You should know that a franchise or concession agreement is when someone gets paid by someone else for providing water services, not by the water service provider. This rule applies to any contract or arrangement a water service provider makes to provide water services.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1011902.

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Government and voting > Local councilsEnvironment and resources > Food and water safety
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"Councils must keep control of water supply infrastructure to ensure people have access to water."

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22: Contracts for providing water services, or

"Agreements to help provide water services to your community"

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

21Franchises and concession agreements prohibited

  1. A contract under section 22 or a joint water service provider arrangement under section 26 entered into by a water service provider in relation to providing water services must not be a franchise or concession agreement.

  2. In this section, franchise or concession agreement, in relation to providing water services, means an agreement under which the party with which the water service provider engages is entitled to receive a payment from a person other than the water service provider for providing the water services.