Metropolitan Wellington Councils Confirm New Water Services Delivery Model
The decision to move to this new model for water services delivery has been prompted by the Government's Local Water Done Well policy, which has mandated that all councils must review how water services are delivered.
In March and April 2025 the councils publicly consulted on water service delivery options. Across all five councils, submissions showed solid support for the preferred option of a multi-council-owned water organisation, ranging from 69 to 84 percent of submissions in favour.
The five councils have now all voted to go ahead with the new organisation, which will take accountability for water services on 1 July 2026.
Mana whenua iwi Ngāti Toa Rangitira and Taranaki Whānui ki Te Upoko o Te Ika support this decision and are partnering with councils on improving water services delivery.
The new organisation, with the interim name Metro Water, will own and operate public drinking water, wastewater and reticulated stormwater assets for a population of around 430,000 people.
Advisory Oversight Group chair Dame Kerry Prendergast says councils and mana whenua have been clear throughout the process that the intent is to provide better levels of service for communities through reduced leaks, outages and unplanned disruptions, while also enabling growth and delivering cleaner harbours and waterways.
"By establishing a council-owned organisation, we are ensuring assets are retained in public ownership and there is no privatisation. It also means councils, representing their communities, and mana whenua will have ongoing oversight."
"Metro Water will have the resources, independence and region-wide perspective to effectively manage and improve three waters services for current and future communities," says Dame Kerry.
The next steps are to finalise key foundation documents for the new organisation, finalise a Water Services Delivery Plan for submission to the Government, and appoint interim board directors and an interim Chief Executive.
For further information, see factsheet below or contact hannah.lawrence@poriruacity.govt.nz.
Factsheet - what's planned for water services in Metropolitan Wellington
New water organisation accountable for water services from 1 July 2026
There will be a new multi-council-owned water organisation that will take charge of drinking water, wastewater and reticulated stormwater services within the boundaries of Hutt City, Porirua City, Upper Hutt City and Wellington City, from 1 July 2026.
For planning purposes, a temporary, placeholder name of Metro Water is being used for the new organisation. This is not intended to be the permanent name.
Metro Water will have new governance and ownership arrangements, new leadership and new strategic direction that will distinguish it from Wellington Water.
To ensure ongoing service delivery and to retain expertise and experience, it is the intent of councils that Metro Water will absorb Wellington Water operational and support staff below senior management (known as tier 3 and below).
Governance and oversight
Metro Water will have an independent Board, appointed by a steering committee of representatives of the five council owners and representatives of Ngāti Toa Rangitira and Taranaki Whānui ki Te Upoko o Te Ika.
Councils and mana whenua will set the framework for Metro Water through foundation documents (currently being developed) - Stakeholder Agreement, Constitution, Statement of Expectations and Consumer Charter. These will be in final draft by October 2025 and ratified by councils in late 2025.
Metro Water will operate in line with new water services legislation and regulatory oversight will be provided by the Commerce Commission (consumer protection and charging), the Water Services Authority - Taumata Arowai (water standards) and Greater Wellington Regional Council (environmental compliance).
Charging
Metro Water will charge directly for water services. Initially, interim billing arrangements are likely to be in place until Metro Water has established systems and processes. Regardless of billing arrangements, water charges will be clearly separate from rates.
Charges will have to increase over the next decade, as the backlog of long-overdue upgrades is tackled. Economic and financial modelling indicates that Metro Water will keep costs about a third lower than would be the case if the status quo continued. That's because Metro Water will have greater ability to borrow money than councils currently do and costs can be spread over a longer period of time. It's also expected to deliver economies of scale and efficiencies.
The exact amount of water charges will be influenced by a number of factors including how costs are shared between commercial water users and households, the scheduling of upgrade works and investment, and moving to consistent charges across the metropolitan area. Currently households and commercial water users pay different amounts through rates in each city.
Water services delivery plan
All councils are required to present a Water Services Delivery Plan to Government by 3 September 2025.
The Metropolitan Wellington Water Services Delivery Plan will set out how the five councils will meet requirements of the Government's Local Water Done Well reforms, including statutory requirements under the Local Government (Water Services Preliminary Arrangements) Act 2024.
Implementation
Interim Board Directors will be appointed prior to October 2025 by the council representatives on the existing Advisory Oversight Group.
The interim board will appoint an interim Chief Executive and oversee establishment of Metro Water. In due course, the interim board will be replaced by an enduring board appointed by the Stakeholder Committee.
Some initial work is already underway on interim director recruitment and planning for IT and customer systems and processes for Metro Water.
Implementation is being jointly funded by the five councils.
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