Council Negotiations Take New Water Entity One Step Further

Scoop

08-07-2025

Key conditions for a Wairarapa-Tararua water entity have been negotiated by councils, including a 9-year period of non-harmonisation of prices and debt.
Now, Carterton and Masterton councils will need to confirm their participation in the joint entity, or drop out and go it alone.
South Wairarapa and Tararua councils have already formally committed to the partnership, but Carterton and Masterton both sought more clarity on price harmonisation, debt transfer, and governance matters before committing.
Masterton District Council would meet in public exclusion on Wednesday to discuss foundation principles for the proposed Wairarapa-Tararua entity.
Meanwhile, a report to Carterton District Council, which would also meet on Wednesday, outlined the terms that had been agreed upon through negotiations.
It said the proposed joint entity would be a council-owned organisation with a board of seven directors at a minimum.
These directors would be skills-based appointments and would include a member from Ngāti Kahungunu ki Wairarapa and a member from Rangitāne o Wairarapa.
All board members would be assessed against a skills matrix.
A shareholder/stakeholder council would oversee the activities of the entity, appointing and removing directors, approving the Statement of Expectations and monitoring compliance with standards, and council performance targets.
The shareholder/stakeholder council would be made up of six representatives - one representative appointed from each of the four councils, and one representative each from Ngāti Kahungunu ki Wairarapa and Rangitāne o Wairarapa.
Each would have one vote.
The four participating councils would also be allocated shares based on connected water services customers.
On this basis, 40% of shares would be allocated to Masterton, 27% to Tararua, 20% to South Wairarapa, and 13% for Carterton
Changes to the non-harmonisation rules within the first nine years would require a unanimous vote of all four councils.
Changes to the non-harmonisation rules after the first nine years would require a super majority (75%) using council shareholdings.
A nine-year period was decided upon to tie into the three-year cycle of when water services delivery plans would need to be refreshed.
A joint water services delivery plan would need to be adopted by each council in August, before being signed by the four council chief executives and submitted to the Department of Internal Affairs for consideration before September 3, 2025.
The high-level cost of establishment of the entity is estimated at $5m which was proposed to be shared equally between participating councils, meaning each council's share would be $1.25m.
In Carterton's case, council staff have recommended that establishment costs be loan-funded and that this debt be transferred to the entity along with other assets and liabilities at 'go-live'.
The participating councils have agreed that the very last date for 'go-live' can be no later than July 1, 2027.