Southern Water Done Well

Waitaki District Council to join Southern Waters

Southern Waters’ shareholding councils have welcomed the Waitaki District Council’s decision yesterday to rejoin the partnership.

In a joint statement, Southern Waters mayors – Central Otago District Mayor Tamah Alley, Clutha District Council Jock Martin and Gore District Mayor Ben Bell – said the inclusion of Waitaki would strengthen the water services entity. Southern Waters would become the fourth-largest water services company in the South Island.

Mayor Martin said Southern Waters had always been open to working with like-minded councils to deliver positive outcomes for their communities.

“This isn’t about leveraging for advantage. It’s about building a model that is financially sustainable, protects public health and the environment, and gives our communities confidence in how their water services are delivered,” he said.

While Waitaki's decision is an important step, any expansion of Southern Waters requires approval from all three current shareholding councils.

Those decisions are scheduled for meetings on:

• 17 March – Gore District Council
• 25 March – Central Otago District Council
• 1 April – Clutha District Council

At those meetings, the councils will also consider foundational documents for Southern Waters, including the Shareholders’ Agreement and Constitution.

The mayors also acknowledged that other councils were working through their own processes.

“We respect that Timaru and Mackenzie District Councils must make decisions they believe are in the best interests of their communities. These are significant, long-term choices, and each council must weigh its options carefully.”

If all three Southern Waters councils resolve to accept Waitaki’s re-entry, further work would be undertaken to finalise documentation and transition planning.

Southern Waters announced two key roles to lead the establishment of the new water services entity. Professional director Bruce Gemmell, of Christchurch, has been appointed Establishment Chair and Fiona Smith, who has over 30 years of specialist water-sector experience in Australia, accepted the role of Programme Director.

The mayors of Southern Waters’ shareholding councils – Central Otago District Mayor Tamah Alley, Clutha District Jock Martin and Gore District Mayor Ben Bell – said, in a joint statement, that the calibre of applicants for both roles had been outstanding.

“The strong interest from across New Zealand and Australia is testament to the scale of setting up a water services company and the confidence experienced professionals have in Southern Waters as a new organisation.”

Southern Waters will be the largest joint Council water services entity in the South Island, delivering water, wastewater and stormwater services across the Central Otago, Clutha and Gore districts.

Joint Water Services Delivery Plan gets the tick of approval

Southern Waters shareholding councils – Central Otago, Clutha and Gore – have received unanimous approval for their joint Water Services Delivery Plan from the Secretary for Local Government.

The three councils’ chief executives welcomed the news, saying it marked a significant milestone in the journey to establish a successful water services entity.

From 1 July 2027, Southern Waters will deliver drinking water, wastewater and stormwater services across the three districts under the Government’s Local Water Done Well framework. It will be the largest joint Council water services entity in the South Island.

The WSDP highlights the transition from council-run water services, delivered alongside other functions, to a jointly owned entity with a singular focus – the delivery of safe, reliable and sustainable water services.

Central Otago District Council Chief Executive Peter Kelly said the process had demonstrated what could be achieved when councils worked together with a shared vision.

“This is a positive step forward. The acceptance of our plan shows that local solutions can work when there’s commitment and trust,” Mr Kelly said.

Gore District Council Chief Executive Debbie Lascelles said the milestone reflected the enormous amount of work by staff across all three councils.

“It endorses our work to put in place the foundations for a well-governed water services company that will meet the needs of our communities for decades to come,” Ms Lascelles said.

Clutha District Council Chief Executive Steve Hill said the WSDP laid out a practical roadmap.

“Our communities rely on safe and sustainable water services every day. This plan gives us a clear pathway to continue delivering that while investing in infrastructure that supports growth and environmental standards,” Mr Hill said.

The next stage of work will focus on recruiting for key leadership roles in the company and preparing its foundation documents, such as the Shareholders’ Agreement and company constitution.

Water Services Delivery Plans are a legislative requirement for councils to demonstrate how they will meet regulatory requirements, support growth and urban development, and ensure financial sustainability in the delivery of water services.

The joint Water Services Delivery Plan is available on each Council’s website:

• Local Water Done Well - Central Otago District Council AND Water Services Delivery Plan template
• Water Services Delivery Plan - Gore District Council
• Water Services Delivery Plan - Clutha District Council

September

The Southern Water Done Well delivered its Water Services Delivery Plan to the Government in time for the 3 September 2025 deadline.

Southern Water Done Well partnership signs water services plan

The Central Otago, Clutha and Gore district councils have signed off on a significant milestone in their journey to jointly delivering sustainable, locally owned water services to their communities.

The councils’ mayors and chief executives met on Tuesday 26 August to sign the joint Water Services Delivery Plan (WSDP), a document that marks the culmination of months of planning, analysis, community conversations and decision-making.

The plan outlines the future delivery of water, wastewater, and stormwater services across the three districts. It demonstrates Southern Water Done Well’s commitment to meeting regulatory requirements, supporting growth and achieving sustainable water services through a jointly owned water services entity.

It also includes an assessment of each council's water infrastructure and future investment needs.

Core principles in the WSDP that will be reflected in the new entity include:

• No consumer pays more for their water services than they would under an in-house model for the same level of service and investment.
• Rural water is recognised as a distinct service and ’fourth water’.
• All shareholding councils have equal votes through a shareholders’ representative group.

The WSDP is a cornerstone document in the Government’s Local Water Done Well legislation.

All New Zealand councils have until 3 September to submit their plans to the Department of Internal Affairs, which will assess whether they meet legislative requirements or require resubmission.

Wednesday July 30

At the July 2025 Council meetings, Southern Water Done Well partners, Central Otago District Council, Clutha District Council and Gore District Council agreed, in principle, to present a jointly owned Council Controlled Organisation in their Water Services Delivery Plan.

The three southern councils’ support for the joint CCO is subject to further analysis of the advantages and disadvantages of a three-council model, given Waitaki’s departure from SWDW.

High level modelling from local government specialists Morrison Low Advisory indicates that the three councils can still achieve savings if they were to enter a joint CCO, albeit at a lower level than had Waitaki remained.

Councils will consider updated reports and analysis and make their final decisions at meetings in August. The Government’s Local Water Done Well programme has presented councils throughout the country with one of the most critical decisions they will face in many years.

The legislation aims to tackle New Zealand’s long-standing water infrastructure challenges by enhancing the quality, sustainability, and affordability of water services nationwide.

Councils must submit Water Services Delivery Plans to the Department of Internal Affairs by 3 September. These plans need to show how they will deliver water services that meet new water quality and infrastructure standards while being financially sustainable in the long term.

Tuesday 15 July

Third southern council supports water services delivery partnership

The Gore District Council yesterday (Monday 14 July 2025) voted to join, in principle, its partner Southern Water Done Well (SWDW) councils for the future delivery of water services.

Councillors supported a jointly owned Council Controlled Organisation (CCO) with Central Otago District Council and Clutha District Council as the water services delivery model for inclusion in their Water Services Delivery Plan.

The decision comes after both Central Otago and Clutha last week agreed in principle to this model. The only other SWDW partner, Waitaki District Council, voted to exit the group and opt for an in-house business unit.

The three southern councils’ support for the joint CCO is subject to further analysis of the advantages and disadvantages of a three-council model, given Waitaki’s departure from SWDW.

Gore District Mayor Ben Bell said the Government’s Local Water Done Well legislation presented councils nationwide with one of the most important decisions they would make in years.

“The future of water services delivery is intergenerational, and decisions made by councillors today will have a long-term impact on their communities.”

The Gore District is facing an estimated $500 million in projected infrastructure investment over the next 30 years, an expenditure that the community simply cannot afford, Mayor Bell said.

“In this instance, bigger is better in terms of economies of scale and financial sustainability.

“By working with like-minded councils, we can provide a water services delivery model that balances regional efficiency with local accountability,” he said.

SWDW chair and Central Otago District Mayor Tamah Alley welcomed Gore’s decision. It was a testament to the significant amount of work over a relatively short time that had gone into ensuring elected members and communities had what they needed to make informed decisions, she said.

“We know that together we (councils) are stronger and can deliver better long-term outcomes for our communities.

“There’s still work to be done, though, to understand what a group of three councils looks like and get a compliant Water Services Delivery Plan submitted by the deadline.”

The Gore District Council, as with its SWDW partners, recently conducted a month-long consultation on water service delivery options. The three options were a jointly owned CCO, which was the preferred option for all councils, a stand-alone CCO and an in-house business unit.

Gore received 82 submissions. There was an equal split between the joint CCO and in-house business unit - 34 submissions, or 41.5%, each.

Councils must submit Water Services Delivery Plans to the Department of Internal Affairs by 3 September. These plans need to show how they will deliver water services that meet new water quality and infrastructure standards while being financially sustainable in the long term.

The Minister of Local Government, Simon Watts, has stated in a letter to SWDW councils that there would be no time extension to submit a Plan.

Read more:

Southern water services partnership takes significant step forward - Central Otago District Council

Council to choose a water delivery option - Central Otago District Council

Waitaki District Council withdraws from Southern Water Done Well - Central Otago District Council

Thursday 10 July

First step in future direction of water services delivery chosen

The Central Otago District Council (CODC) will be presenting a jointly owned Council Control Organisation option for water services delivery for consideration by the Government.

At the meeting today (Thursday 10 July 2025) the Council considered the three options in the recent public consultation which included a jointly owned Council Controlled Organisation (CCO), a stand-alone CCO, or an in-house business unit.

The Council has been investigating a partnership, Southern Water Done Well (SWDW), with neighbouring councils, Waitaki, Clutha and Gore.

Waitaki District Council met on Tuesday (8 July 2025) and decided not to progress this partnership, opting for an in-house business unit.

Clutha District Council also met today (Thursday afternoon 10) and decided to progress the joint partnership.

Read more:

Southern water services partnership takes significant step forward - Central Otago District Council

Gore District Council will meet on Monday (14 July 2025), as the third potential council in the partnership depending on the outcome of its meeting.

Councils throughout New Zealand must submit a Water Services Delivery Plan (WSDP) to the Department of Internal Affairs by 3 September. The Minister of Local Government, Simon Watts, has stated in a letter to SWDW councils that there will be no time extension to submit a plan.

Southern Water Done Well chair and Central Otago District Mayor Tamah Alley said the Government had been quite clear about its expectations for councils to work together to deliver Local Water Done Well legislation: Southern Water Done Well met those expectations and set a strategic, long-term direction for delivering financially sustainable, efficient water services while retaining local control, she said.

"Councils will need to be mindful of whether alternative options comply with Government regulations and expectations."

The Government has the power to reject a Water Services Delivery Plan and appoint a water services specialist to prepare one that meets legislative requirements. Councils would have to pay for the specialist.

A full report is in Thursday’s agenda: Meetings - Central Otago District Council

A recording of today’s Thursday’s extraordinary meeting can be watched online: Meeting and Workshop Recordings - Central Otago District Council

Monday 9 June

The Southern Water Done Well consultation is now closed.

Friday 9 May

See link to a video hosted by Central Otago Mayor Tamah Alley, Gore Mayor Ben Bell, Clutha Mayor Bryan Cadogan and Waitaki Mayor Gary Kircher, which explains the proposed partnership between the four councils in delivering water services as a joint regional partnership under the banner of Southern water down well - HERE.

Thursday 8 May

Today (Thursday 8 May 2025) the Council agreed to adopt the draft document that will give our community information on Southern Water Done Well, so you can share your thoughts on the options for delivery of water services in the future – that’s our drinking water, wastewater and stormwater. This is about how councils will be required to carry out these services under the Government’s Local Water Done Well legislation.

As you know, water services delivery was one of the items we recently consulted on in the 2025-34 Long-term Plan. At the moment all water services are managed by CODC, and in the LTP process we explored opportunities to shift water services to a separate Council Controlled Organisation (CCO) or collaborate with neighbouring councils to develop multi-council water service organisations i.e., the Clutha and Gore district councils and possibly the Waitaki District Council, to try and manage the escalating costs, share resources and know-how.

Southern Water Done Well is a more in-depth continuation of that conversation.

The draft document has information on the three options:

• Option 1- Jointly owned Council Controlled Organisation
• Option 2- Stand-alone Council Controlled Organisation
• Option 3- In-house business unit (a bit like how we deliver now but with significant changes because of the new Government regulations).

We will be letting you know about the various information sessions in the next few days.

All of this information including the opportunity to give feedback will be posted on Let's Talk.

Tuesday April 29

In just over a week (Friday 9 May 2025) we will be launching the Southern Water Done Well information period which runs until 6 June.

This is about the future delivery of water services in our district under the Government’s Local Water Done Well legislation.

The Government has made it clear that doing what we have been doing is not an option. Change has been mandated and the result is that the shape of water service deliver must change with it.

Our role is to provide our community with a background to how we have arrived at this point and why changes have to occur as a result of rising water service costs, ageing infrastructure, historical underinvestment in asset renewals and maintenance: meaning a rethink of how we deliver water services, not only now but for future generations.

The options include:

Option 1 Jointly owned Council Controlled Organisation (our preferred option, as it was in the 2025-34 Long-term Plan, with the Gore, Clutha and possibly Waitaki district councils).

Option 2 Stand-alone Council Controlled Organisation.

Option 3 In-house business unit (status quo but with significant changes).

The Let's Talk website page will go Live from 9 May: https://lets-talk.codc.govt.nz/southern-water-done....

Thursday 10 April

At the Council meeting Friday 4 April, councillors approved the preferred option for the upcoming Southern Water Done Well (SWDW) consultation, which opens 9 May, eight days after the conclusion of the Council's Long-term Plan consultation. This formalised the joint-council collaboration between the CODC, Clutha, Gore and Waitaki district councils.

Joint-council option to deliver water services preferred - Central Otago District Council

The Council learned this week that the Waitaki District Council, one of the four councils to have joined the SWDW, was looking at a fourth option in its consultation with the community, to explore a joint Council Controlled Organisation (CCO) arrangement with the Mackenzie, Waimate and Timaru district councils. The Timaru council recently declined joining SWDW, to explore a joint council CCO with its nearby councils, namely Waimate and Mackenzie district councils.

Preferred water services option agreed on | Otago Daily Times Online News

When the SWDW consultation opens for public consultation, the community may already be familiar with the options because of the LTP; the Council framed the question of future delivery of water services under the topic What's our plan for water. This conversation will continue in the SWDW consultation to help people make an informed choice, knowing all the facts.

Our community faces a big decision about how drinking water, wastewater, and stormwater services will be delivered in the future. Councils face a big decision in finding the best solutions that ensure sustainable, efficient, and compliant water services for their communities.

The Local Water Done Well legislation requires councils to change how they manage water services, invest more in infrastructure, and comply with stricter government regulations.

The status quo - doing things the way we have always done them isn’t an option as current operating models are likely to fall short of meeting new legislative requirements, including financial sustainability.

We know that water costs are rising due to growth, increasing infrastructure costs, higher standards, additional compliance and regulation, ageing infrastructure needing urgent investment, and measures to mitigate the impact of our changing climate.

We know that our community needs access to safe, clean drinking water, at the same time improving wastewater and stormwater management. The Havelock North gastroenteritis outbreak in August 2016, where 5,000 people fell ill and four people lost their lives due to contaminated drinking water, was a strong trigger for water reform and made us look at our water infrastructure, safety standards and regulatory oversight.

Similar to our LTP, the communities of the participating councils in Southern Water Done Well will be asked if they want to be a single council-owned CCO, or a joint council-owned CCO or retain their water services as an in-house business unit. Under this option services would continue to be delivered in-house but with a higher cost and would require significant increased investment in infrastructure and staffing levels.

We will be providing updates and links to keep the community informed.

Thursday 3 April

Our Long-term Plan has been launched and open for consultation until 1 May.

Water services feature highly as consultation items.

Long-term Plan - Central Otago District Council

Thursday March 27

In addition to the announcement there would be further delays to starting the LTP consultation - one of the nine items being the future of water delivery services in Central Otago, the Council also shared the news that the Timaru District Council had withdrawn from the discussion about being part of a multi-council organisation for the delivery of water services. A joint approach is one of the options to be consulted on with the community in both the CODC’s upcoming LTP and the wider Southern Water Done Well consultation involving Central Otago, Gore, Waitaki and Clutha district councils. Read more:

Start of LTP consultation delayed a few days - Central Otago District Council

Friday March 21

The regional collaboration is now called Southern Water Done Well, as used by Gore District Council on its Let's Talk page:

Southern Water Done Well | Let’s Talk Gore District

To read more about the two water services deliver consultations delivered through our LTP and Local Water Done Well go to:

Community feedback on water sought in two separate consultations - Central Otago District Council

Wednesday March 5

Here are the latest Media Releases regarding this water delivery option:

Timaru District Council joins southern local body collaboration

Joint Council approach to Local Water Done Well enters new phase

LTP consultation delayed until later in March pending audit

CODC prepares shortlist for draft LTP consultation document

Local Water Done Well: Councils call for regional collaboration

Background

As part of the new Local Water Done Well reforms, Council is working on options around how to deliver water services in the future.

At the November 2024 meeting, the Council discussed the options for a Water Services Delivery Plan (WSDP), to be included in next year’s 2025-2034 Long-term Plan discussions.

The Council will seek public feedback on two of the following options:

• Status quo (must be one of the options presented) – set up water services as an in-house/internal business unit. Ownership remains within the council.
• Single Council – set up a Council Controlled Organisation (CCO) with CODC 100% shareholder as an independent water service company.
• *Multi Council – set up a Council Controlled Organisation (owned by multiple councils in the southern region).

The council is also looking at the option of partnering with other councils in Otago-Southland as a regional approach to managing and delivering these water services.

Read more: Local Water Done Well: Councils call for regional collaboration - Central Otago District Council

We will be consulting on the best information we have at the time, and we may follow up with a later consultation with refined costings.