What happened to three waters?

In August 2024 Cabinet approved a new approach to delivering water services after reversing the previous government's Three Waters reforms. Local councils will now be able to borrow for water infrastructure via the Local Government Funding Agency (LGFA). The first Local Water Done Well bill is expected to pass soon, with councils required to submit plans within a year for funding and long-term sustainability of water services.

Water funding will be ring-fenced for infrastructure and supported by borrowing through LGFA, which allows councils to borrow more than they could on their own, up to five times the revenue from water rates. The government is also exploring higher borrowing limits for high-growth councils.

Additionally, drinking water quality regulation is being amended (see previous blog).

More information will become available on the Department of Internal Affairs and Taumata Arowai websites.