The Central Otago and Gore district councils are calling on their Southern counterparts to join forces and take a unified approach to the future of water delivery.

The councils announced last night they would be working together on their water services delivery.

However Invercargill Mayor Nobby Clark said they were “jumping the gun” and the Invercargill City Council couldn’t make that decision until its own community had been consulted.

Under the new government legislation, councils have until September 2025 to create plans for the future of water services.

A key part of this process was hearing from local communities about how they wanted their water services managed.

Invercargill Mayor Nobby Clark says decisions on councils partnering on water services delivery can not be decided until after the community has been consulted. PHOTO: SUPPLIED

At its meeting on Wednesday, the Central Otago District Council considered the latest report on the Government’s Local Water Done Well.

Local Water Done Well is the Government’s plan to deliver safe drinking water, replacing Three Waters.

In his own report, Council chief executive Peter Kelly outlined the history of water services delivery up until now, after the Three Waters proposal was thrown out by the National Party when it came into power.

Labour passed into legislation the Water Services Entities Bill in December 2021, and established four asset owning entities - that were amended to 10 following public backlash.

Now under National, councils must submit a plan to the Department of Internal Affairs by September 3 outlining its model for delivery of water services with 10 years of supporting financial information.

Councils in the Otago-Southland regions have a long history of working together and have been considering collaboration in some form since May 2020. 

On February 7 the Otago-Southland Mayoral Forum directed their chief executives to form a working group that should consider regional collaboration and shared services; regional delivery models and national collaboration. 

Australasian management consulting firm Morrison Low was engaged to work on a business case to explore regional delivery models, and released its report to Otago Southland councils in October.

Peter said the review clearly demonstrated that without change, delivery of future water services and infrastructure investment would become progressively more unaffordable for Central Otago ratepayers - 76 per cent of residential water users across the Otago and Southland

regions will see their current bills doubling within the next 10 years.

The report explored a range of options, but clearly demonstrated a joint asset owning entity was the best solution for the issues that the Otago and Southland regions faced. 

He said the decision to participate in a joint asset owning entity was a significant decision and would require consultation, as set out in the legislation, with the public. 

Central Otago Mayor Tamah Alley said the Central Otago and Gore councils were leading the charge in tackling the complex issue of water services as a region.

"Gore and Central Otago can show what's possible when councils work together. This isn't just about ticking off government requirements – it's about building a future-focused, sustainable model for our region.

“Our councils are committed to a plan that looks beyond a three-year election cycle.

“This will be a huge conversation for our communities, and we need to have the best options possible out for consultation.”

Gore District Mayor Ben Bell PHOTO: SUPPLIED

Some Central Otago district councillors were not convinced they would be able to convince the public on their proposed plans.

“People are going to see this as an asset grab with no benefits,” Cr Martin McPherson said.

“It’s going to cost and it’s going to cost more… we’re going to have a real problem selling this.’’

Council’s Three Waters director Julie Muir said every single council had issues regarding their water services delivery, they were just different issues.  

“But we’re in a slightly better position than most councils,” she said.

Southland MP Joseph Mooney welcomed the news the two councils would work together and said partnership between the two councils showed the Government's model in action.

"I echo their call for more councils to join forces,’’ he said.

The Local Water Done Well model “restored local control over water assets’’ and “provided financially sustainable investment in water infrastructure, reducing the burden on ratepayers’’, he said.

“I'm glad to see councils in our region using our blueprint to deliver sustainable water services with community voices at the decision table."

The Central Otago community will be consulted on the options in March 2025.

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