Local Government (Water Services) Act 2025

Provision of water services: operational matters - Development contributions - Development contributions policy

120: Initial development contributions policy

You could also call this:

"Rules for money paid when building something new in your area"

Illustration for Local Government (Water Services) Act 2025

When a water organisation is set up, it needs to have a development contributions policy. You can think of this policy like a set of rules that says how much people might need to pay when they want to build something new. The water organisation can use parts of policies that territorial authorities already had in place before they had to change them under section 117.

This only applies for a certain period of time, which starts when the water organisation takes over the job of providing water services and ends when the organisation decides to change or get rid of the policy under subsection (4). During this time, the water organisation does not need to ask for opinions before adopting its initial development contributions policy, even though section 119(5) usually says it should.

If a water organisation adopts an initial development contributions policy, it must review the policy within three years. After reviewing it, the organisation must either replace the policy with a new one under section 119 or get rid of it. If the organisation gets rid of the policy without replacing it, the old policy still applies to people who had already asked for a resource consent, building consent, or water service connection before the policy was revoked.

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This page was last updated on 31 August 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1446546.

Topics:

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119: Development contributions policy, or

"Rules for water organisations to charge developers for new water services"

121: Development contributions policy and methodology must be available for public inspection, or

"Water organisations must make their development plans and cost calculations available for you to see"

Part 3Provision of water services: operational matters
Development contributions: Development contributions policy

120Initial development contributions policy

For the purposes of adopting a policy under section 119(1), and despite anything to the contrary in this subpart, a water organisation may adopt, as its initial development contributions policy, the relevant parts of 1 or more territorial authorities’ development contributions policies that were in place immediately before the territorial authorities were required to amend their policies under section 117.
Subsection (1) applies only during the period between the following:
the date on which the responsibility for providing water services is transferred to the water organisation under a transfer agreement:
the date on which the water organisation revokes the policy (with or without a replacement) under subsection (4).

Despite section 119(5), a water organisation is not required to consult before adopting its initial development contributions policy under subsection (1).
A water organisation that adopts an initial development contributions policy under subsection (1) must, within 3 years of adopting the policy,—
review the policy under section 119(4); and
either—
1. revoke the policy and replace it with a new policy under section 119; or
2. revoke the policy without replacing it.

However, an initial development contributions policy that is revoked under subsection (4)(b)(ii) continues to apply to an application for a resource consent, a building consent, or a water service connection that is lodged before the date on which the policy is revoked.