Rates throughout Central Otago are projected to increase 80 per cent - from $1900 to over $3450 - by 2034 in order to meet estimated investment needs across three waters.

That is according to the Morrison Low report released to Otago-Southland councils in October, which prompted Central Otago mayor Tamah Alley and Gore District mayor Ben Bell to call for councils to band together for a unified approach to the future of water delivery.

Under the new government legislation, councils have until September 2025 to create plans for the future of water services - once called ‘Three Waters’ now renamed ‘Local Water Done Well.’

Consultant company Morrison Low was engaged to work on a business case to explore regional delivery models, including a joint asset owning entity for the issues that the Otago and Southland regions faced. 

Central Otago District Council’s (CODC) initial draft 2024 Long Term Plan (LTP) forecast an increase in total three waters related borrowings from approximately $55million in 2024 to about $297million in 2034.

However, the district council expected to generate significant future revenue from the development of residential and industrial land in the area.

The Morrison Low report exploring water delivery options shows a snapshot of Central Otago SUPPLIED

Central Otago has four consents that were due to expire in the next five years. The two wastewater consents were for Alexandra and Omakau. Both are currently discharged to freshwater receiving environments. 

The additional financial impact of discharging to land (if required by Government) was expected to be in the order of $60million - $70million combined.

The council was not fully compliant with its drinking water standards in 2023 - non-compliance related to a lack of protozoal barriers in its Ranfurly, Patearoa, Cromwell and Omakau supplies. 

It received five abatement notices and two infringement notices for its wastewater treatment plants in 2022/23, an increase from three abatement Notices in 2021/22. 

Two abatement notices have since been lifted, with three remaining in place as at August 2024.

However, Council’s water, wastewater and stormwater infrastructure has the second lowest average age of all of the councils in the Otago and Southland regions. 

Expected useful life of water infrastructure varied depending on a range of factors, including material, diameter, and operating conditions, however given the low average age of infrastructure, the district council was unlikely to have an immediate need for significant renewals investment.

Central Otago ratepayers will be consulted on what’s next with regard to Local Water Done Well in March 2025, including whether to join with the Gore District Council and any others that may come onboard as well.

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