Council Votes To Establish New Water Services Organisation
The decision continues the Local Water Done Well process, as mandated by the current Government.
Mayor Nadine Taylor said it was a very important decision for the region.
'We have decided to take a once-in-a-generation opportunity to do things differently to build better three waters infrastructure and provide greater intergenerational equity, spreading the costs over the long term.'
'The Government requires councils to financially ringfence their water services and by setting up a new, water-focussed organisation it will be easier to sustainably deliver efficiencies and savings for residents on Council's drinking and wastewater supplies.'
'Costs will be spread over a longer period of time through borrowing, leading to lower water charges when compared to retaining water services internally at Council.'
'Other notable benefits are the new WSO will have a singular focus on the delivery of water infrastructure and be better positioned to attract the specialist staff we will need in the future.'
'By removing three waters debt from Council's books, we will have an improved ability to deliver other key Council activities to support the Marlborough community, including responding to and funding unforeseen circumstances such as natural disasters.'
Mayor Taylor noted that almost all of Marlborough's townships need upgrades to pipelines, pump stations and wells, with treatment plant upgrades required in Blenheim, Havelock, Riverlands and Awatere.
'Blenheim, Havelock, Riverlands, Seddon and Renwick also need wastewater upgrades. Many of Picton's and Blenheim's stormwater assets have an expected life of less than 10 years. In addition we have requests from the community to provide new water reticulation services - for example in Ward, Rarangi and Dry Hills in Blenheim.'
'While Council has done a good job of building and maintaining its current three waters infrastructure, a big step change is required if we are to face head-on the challenges of the future,' she said.
'This step change is best delivered through a new water services organisation.'
Council received 44 submissions on its Local Water Done Well proposal.
The WSO would be incorporated from 1 July 2026 with a one year transition to full operations from 1 July 2027. Marlborough District Council will be its sole shareholder, appoint its board of directors and set its direction via a binding Statement of Expectations, holding it accountable to the people of Marlborough.
Council will also establish a water services governance and oversight committee made up of the mayor, the three committee chairs and chief executive.
Notes
The Government's Local Water Done Well process requires all councils to develop a Water Services Delivery Plan (WSDP) by 3 September 2025 which describes how drinking water, wastewater and stormwater services will be delivered in ways that are financially sustainable, meet regulatory quality standards, meet water quality standards and support housing growth and urban development.
Other considerations include:
• New ring-fencing rules that require water delivery services to be financially separate from Council's other functions and activities.
• Water services being subject to new economic regulation and a consumer protection regime.
• Access to the Local Government Funding Agency to help fund the needed investment in water infrastructure.
By 2034, $410 million of investment is needed in Marlborough's water infrastructure. The renewal list for pipelines, pump stations, treatment plants and dams is considerable. About $45 million of water assets, $20 million of wastewater assets and $45 million of stormwater assets are due for replacement within the next nine years. The renewal profile will likely increase as assets built in the 1950s and 60s, including much of Blenheim and Picton's stormwater network, requires replacement over the next 40 years.
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