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Local Government (Water Services) Act 2025

Provision of water services: operational matters - Development contributions - Transfer to new water organisation

129: Transfer to new water organisation

You could also call this:

"When a council moves its water services job to a new organisation, it must hand over unused money and information."

Illustration for Local Government (Water Services) Act 2025

When a territorial authority decides to transfer the job of providing water services to a new water organisation, this section applies. You need to know that the territorial authority has to move some things to the new water organisation on the day the transfer agreement starts. This includes any money the territorial authority received for water services infrastructure that has not been used yet, and information about why that money was needed.

The territorial authority still has to collect money from people who are developing properties that need water services, but only for applications that were made before the transfer agreement started. This applies to people who applied for resource consents or building consents, or who were granted connections to the water services before the transfer agreement started.

After the transfer agreement starts, the territorial authority has to give the new water organisation the money it collects from these applications as soon as it can.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1446556.

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128: Territorial authority may extend development contributions policy to water organisation, or

"Councils can share their development contribution rules with water suppliers if they don't have their own."

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130: Limitation on use of transferred contributions, or

"Water organisations can only use donated money for the purpose it was given"

Part 3Provision of water services: operational matters
Development contributions: Transfer to new water organisation

129Transfer to new water organisation

  1. This section applies when a territorial authority transfers the responsibility for providing water services to a water organisation under a transfer agreement.

  2. The territorial authority must, as of the date on which the transfer agreement takes effect, transfer the following to the water organisation:

  3. any development contribution or financial contribution (or any part of a development contribution or financial contribution) that the territorial authority received in respect of the relevant water services infrastructure to which the transfer agreement relates, if the infrastructure costs are yet to be incurred:
    1. all relevant information, including the purpose for which the contribution was required.

      1. After the date on which the transfer agreement takes effect,—

      2. the territorial authority must continue to require development contributions, or financial contributions in respect of developing the water services infrastructure to which the transfer agreement relates, for—
        1. applications for resource consents or building consents that were lodged before the date on which the transfer agreement took effect; or
          1. applications for service connections that were granted before the date on which the transfer agreement took effect; and
          2. the territorial authority must, as soon as is reasonably practicable, transfer all development contributions and financial contributions received under paragraph (a) to the water organisation.