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Local Government (Water Services) Act 2025

Provision of water services: operational matters - Development contributions

114: Limit on requiring contributions for developments

You could also call this:

"Water organisations can only charge you for some costs when you need water services for a new development"

Illustration for Local Government (Water Services) Act 2025

When you need water services for a new development, a water organisation can only charge you for the cost of providing those services in certain situations. You will only have to pay for the cost of capital expenditure if it is allowed under this Act or another law that says a water organisation can recover that cost.

If you are building something in an area where a water organisation provides services, they might charge you a fee to cover the cost of providing water services to your development. This can happen if Watercare Services Limited, also known as Watercare, had to spend money to provide water services to your development.

You might have to pay this fee even if Watercare spent the money to provide services to your development and other developments at the same time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1449406.

Topics:
Government and voting > Local councilsEnvironment and resources > Food and water safetyHousing and property > Land use
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113: Power to require contributions for developments, or

"Councils can ask you to pay a fee when you build something or connect to water services."

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115: Information sharing for development contributions, or

"Water organisations and councils must share information to help pay for new water services."

Part 3Provision of water services: operational matters
Development contributions

114Limit on requiring contributions for developments

  1. A water organisation may only recover its cost of capital expenditure necessary to service an additional or increased demand on water services infrastructure over the long term under—

  2. this Act; or
    1. any other enactment that specifically allows a water organisation to recover that cost.

      1. However, if a person is undertaking development within a water organisation’s service area, the water organisation may charge the person a fee or charge to recover the cost of capital expenditure incurred by Watercare Services Limited (Watercare) if that expenditure was necessary to service additional or increased demand on Watercare’s water services infrastructure from that development, whether Watercare incurred that expenditure—

      2. solely for that development; or
        1. jointly with other developments.