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Local Government (Water Services) Act 2025

Structural arrangements for providing water services - Responsibility for providing water services - Significance and engagement policy

37: Water organisation’s policy: preparation and amendment

You could also call this:

"Water organisations must create and update their plans with the community and shareholders."

Illustration for Local Government (Water Services) Act 2025

When a water organisation is set up under section 44, it must create its first significance and engagement policy within 12 months. If the organisation was already providing water services, it has 12 months from the start date of this Act to create its policy. You need to know that the organisation must work with its shareholders, the people it serves, and the communities in its area to prepare this policy.

The organisation must get its shareholders to approve the proposed policy and work together with any territorial authorities that are shareholders. This means they must identify any overlapping matters in their policies and consider their roles and responsibilities. They must also agree on changes to minimise duplication and inconsistency between their policies.

The organisation can change its policy at any time, but it must change the policy if its responsibilities for water services change. When changing the policy, the organisation must work with its shareholders and the communities it serves, unless it already has enough information about their interests and preferences. If a territorial authority is a shareholder, the organisation must also work with the authority to minimise duplication and inconsistency between their policies.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1443242.

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36: Water organisation’s policy: specific content, or

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Part 2Structural arrangements for providing water services
Responsibility for providing water services: Significance and engagement policy

37Water organisation’s policy: preparation and amendment

  1. A water organisation must adopt its first significance and engagement policy within 12 months after the organisation is established under section 44.

  2. If the water organisation was providing water services before the commencement date of this Act, it must adopt its first significance and engagement policy within 12 months after that commencement date.

  3. When preparing a significance and engagement policy, a water organisation must—

  4. engage with—
    1. its shareholders; and
      1. the consumers in its service area; and
        1. the communities in the districts or regions of those of its shareholders that are territorial authorities; and
          1. any particular communities identified by shareholders (for example, iwi, hapū, and other Māori organisations in the organisation’s service area); and
          2. obtain its shareholders’ approval of the proposed policy.

            1. When a water organisation is preparing its significance and engagement policy, the organisation and any territorial authorities that are shareholders in the organisation must together—

            2. identify any matters addressed by the organisation’s proposed policy and 1 or more of the authorities’ significance and engagement policies; and
              1. consider the respective roles and responsibilities of the organisation and the authorities; and
                1. agree on amendments to the organisation’s proposed policy and the authorities’ policies that minimise unnecessary duplication and inconsistency between them.

                  1. An organisation—

                  2. may amend its significance and engagement policy at any time; but
                    1. must amend the policy if there is a change to the organisation’s responsibilities for water services, including when the organisation receives or returns responsibilities under a transfer agreement with a territorial authority.

                      1. When amending the policy, the organisation—

                      2. must comply with subsection (3)(a)(i) and (b); and
                        1. must comply with subsection (3)(a)(ii) to (iv) unless it considers on reasonable grounds that it has sufficient information about the interests and preferences of consumers and communities to enable the purpose of the policy to be achieved; and
                          1. must comply with subsection (4) if 1 or more territorial authorities are shareholders in the organisation.