Central Otago District Council’s partnership with Clutha and Gore to deliver local water services has been given the official go-ahead, marking a major milestone in how the region’s drinking, wastewater and stormwater systems will be managed in future. 

The Department of Internal Affairs has approved the three councils’ joint Water Services Delivery Plan, paving the way for the creation of Southern Waters - a council-owned water entity that will begin operating from July 1 under the government’s Local Water Done Well framework. 

CODC chief executive Peter Kelly said the approval showed what could be achieved when councils worked together with a shared vision. 

“The acceptance of our plan shows that local solutions can work when there’s commitment and trust,” he said. 

The plan outlines approximately $560M in capital investment between 2024 and 2034, close to 40 percent of it for renewing ageing three waters infrastructure.  

While average water charges are forecast to rise about 110 percent over that time, the partnership model aims to keep future costs lower by sharing expertise, assets and administration across districts. 

Waitaki District Council, which had initially been involved in discussions about forming a four-council Southern Water Done Well partnership, withdrew to pursue its own stand alone water plan.  

That proposal has since been rejected by the Department of Internal Affairs. 

When Central Otago committed to the joint approach earlier this year, Peter Kelly said the partnership had been designed to leave the door open for other councils to join - a move that would further improve economies of scale and benefit ratepayers. 

Southern Waters will be the largest joint council water entity in the South Island.  

Its focus will be on the safe, reliable and sustainable delivery of water services, separate from other council functions. 

The next stage of work involves recruiting key leadership roles and preparing foundation documents such as the shareholders’ agreement and company constitution. 

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