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Local Government (Water Services) Act 2025

Structural arrangements for providing water services - Responsibility for providing water services - Transfer of responsibilities, etc, to water organisation

13: Territorial authority’s actions before entering transfer agreement

You could also call this:

"What a territorial authority must do before signing a water services agreement"

Illustration for Local Government (Water Services) Act 2025

Before you enter a transfer agreement, a territorial authority must follow some steps. You must talk to the water organisation's board, or other representatives if the board has not been appointed yet, about important matters in the agreement. You must also set up a way to resolve disputes and confirm the final version of the agreement with the water organisation.

If two or more territorial authorities are involved, you must discuss and agree on important matters with each other. You must also choose a date for the agreements to take effect and prepare documents for the water organisation. This is required under the Local Government (Water Services) Act 2025, and you can find more information in section 12(4) and section 12(5)(b).

You need to make sure you comply with these requirements before adopting a transfer agreement.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1427393.

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12: Transfer agreement with water organisation, or

"Agreeing to pass on water service responsibilities to a water organisation"

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"What a transfer agreement means and how it changes who provides your water services"

Part 2Structural arrangements for providing water services
Responsibility for providing water services: Transfer of responsibilities, etc, to water organisation

13Territorial authority’s actions before entering transfer agreement

  1. A territorial authority must comply with this section before adopting a transfer agreement under section 12(4).

  2. A territorial authority must—

  3. discuss and reach agreement with the following in relation to the significant matters to be contained in the proposed transfer agreement:
    1. the board of the water organisation:
      1. 1 or more other appropriate representatives of the water organisation if the board has not yet been appointed; and
      2. establish and use a process for—
        1. resolving any disputes that might arise in discussions under this section; and
          1. confirming the final version of the proposed transfer agreement with a representative of the water organisation.

          2. Subsection (4) applies if 2 or more territorial authorities—

          3. have established (or are in the process of establishing) a water organisation; or
            1. are, or intend to be, shareholders in a newly established water organisation.

              1. Despite section 12(5)(b), the territorial authorities must—

              2. discuss and reach agreement with each other on the significant matters to be contained in their respective agreements; and
                1. agree on a common date on which those transfer agreements will take effect (which may be on or after the date on which the final transfer agreement is entered into); and
                  1. prepare foundation documents for the water organisation.