This briefing paper aims to demystify the requirements of the Local Government (Water Services Preliminary Arrangements) Act 2024 (Act) which came into force last week.

It sets out the key decisions that territorial authorities will need to make over the next 12 months in order to meet the requirement to submit a compliant Water Service Delivery Plan (WSDP) to the Secretary of Local Government by 3 September 2025.

What is a WSDP, and what are the consequences of adopting one?

A WSDP is a new type of plan, focused specifically on water service delivery. Council’s will be required to submit their WSDP by 3 September 2025, unless an extension is granted by the Minister.

The WSDP is intended to provide a single reference point that identifies the current state of your water services, and plans for delivery that will achieve all relevant standards, is financially sustainable and that supports your planned growth.

The information in WSDPs will cover three aspects: financial and asset information, investment required, and proposed service delivery arrangements. A WSDP must cover all of your water services: drinking water, wastewater and stormwater.

Once adopted and accepted by the Secretary of Local Government, a WSDP will become a blueprint for how your council (either directly, or through a water services council-controlled organisation (WSCCO)) will deliver water services in your district - which may involve partnering up with other councils in a joint arrangement. This is because councils are required to “give effect” to the proposals or undertakings set out in a WSDP.

In this way it isn’t just a plan, as it may end up informing or requiring changes to your existing LTP, Annual Plan, spatial plans and bylaws.

Decisions you need to make

While the DIA materials are a very useful starting point, in this email we identify the key actions and decisions that will need to be progressed ahead of adopting a WSDP.

Each decision will involve a range of considerations and potential analysis, which we would be happy to discuss with you.

Action / Decision	What will it involve?
Start identifying and assessing water service delivery options	Instructing staff to evaluate at least two service delivery options: your current water service delivery arrangements (ie the status quo), and establishing or amending a WSCCO or a joint arrangement with other councils. A council can, if it wishes, identify and assess other reasonably practicable options. Issues that will need to be considered as part of the service delivery option evaluation include the complexity of different delivery models; governance and accountability arrangements particularly if the proposed model involves delivery via a WSCCO; potential scope and scale benefits of entering into joint arrangement with other councils; funding and financing implications including the ability to access LGFA funding; and implications for council staff and workforce planning. Over the past few months we have been assisting ten councils in the Wellington region / lower North Island to develop and assess a new WSCCO model, and analyse the benefits of that model as compared to status quo delivery arrangements.
Decide on the proposed model or arrangements for delivering water services	Based on the options analysis, an in principle decision will need to be made on the preferred option for consultation via the draft WSDP.
If a joint arrangement is preferred, decide how a joint WSDP is to be developed	This will involve discussions and negotiations with the other participating councils, and a decision on whether or not stormwater will be part of any such arrangement or addressed separately in the WSDP.
Approve the draft WSDP (or part of it) for consultation	The Act requires that a council must consult on the part of the WSDP that sets out the anticipated or proposed model or arrangement for delivering water services, and may consult on remaining parts of the WSDP.
Adopt the WSDP
If necessary, make any amendments to other policies, including the LTP.	The Act, helpfully, allows councils to dispense with consultation on an LTP amendment that gives effect to water services delivery arrangements set out in the WSDP.
Establish any new WSCCO, or joint arrangements for water service delivery.	This will include incorporating the new entity and drafting related documents such as a constitution and, in the case of a WSCCO, a shareholders’ agreement.

While the Act provides several process modifications that streamline normal consultation and decision-making requirements and allow more onerous provisions in the Local Government Act 2002 to be bypassed, these decisions remain complex. They are critical to the effective delivery of water services into the future, and likely to be of significant public interest. 

Contact us

Simpson Grierson has a full-service team of experts to help you navigate these requirements, and deliver a robust WSDP before the 3 September 2025 deadline. We are well placed to assist you with all aspects of WSDPs, CCO establishment and governance, and joint local government arrangements.

Please get in touch with any of the contacts listed below.

Corporate (Simon Vannini | Anastasiya Gamble)
Local Government (Mike Wakefield | Padraig McNamara | Judith Cheyne)
Finance (Josh Cairns | Edward Norman)
Tax (Barney Cumberland)
Economic regulation (James Craig)
Property (Donna Hurley | Nick Wilson)