Local Government (Water Services) Bill has first reading

The Local Government (Water Services) Bill, which had its first reading in Parliament yesterday, will establish the enduring settings for the new water services system. This includes details for a new economic regulation and consumer protection regime for drinking water and wastewater services to be implemented by the Commerce Commission.

The Commerce Commission will have a range of regulatory tools, including mandatory information disclosure, to promote transparency and ensure investments in water infrastructure and services are made where they are needed most. The Commission’s role will be critical to safeguarding consumer interests and will provide peace of mind to Kiwis that we are getting value for money from our water services.

The economic regulation regime is being progressed as part of the Local Water Done Well reforms to address New Zealand’s long-standing water infrastructure challenges while retaining local ownership and decision making.

The regime will be flexible and proportionate, in line with water services suppliers’ different needs and situations. The Commerce Commission will be able to set individual requirements for certain suppliers, and common regulations where appropriate.

Implementation will be staged, allowing the Commerce Commission to engage with the local government water services sector and assist regulated suppliers to understand their obligations. The Commerce Commission will start implementing the economic regulation regime after legislation is passed, which is expected in mid-2025.

The Ministry of Business, Innovation and Employment is currently consulting on a proposed levy to recover the cost of the Commerce Commission’s new functions to regulate water services from 1 July 2025 onwards.

Read more about the levy consultation and have your say

Read more about water services economic regulation and consumer protection

Read the Government’s most recent announcement(external link) — Beehive.govt.nz

Read the Government's August announcement(external link) — Beehive.govt.nz

Read more about Local Water Done Well, including guidance and information for councils(external link) — Department of Internal Affairs