The complicated Southern Water Done Well model will soon be out for public consultation in May.

A joint Council-Controlled Organisation (CCO) with Gore, Clutha and Waitaki district councils, now without Timaru, was agreed on yesterday, but subject to community input.

The Central Otago District Council must still consult the community on three different options before providing the Government with a water service delivery plan by September 3.

Councillors were updated on the proposed costs of the different models - including an In-House Business Unit that chief executive Peter Kelly said they didn’t have the staff or expertise for.

A separate option of a Standalone CCO would see water charges rise by 195 per cent between 2025 and 2034.

Under the third and preferred option, was a Joint Water Services CCO - Southern Water Done Well, which would see charges rise 161 per cent, but give councils a greater capacity to manage debt and fund infrastructure upgrades.

Early estimates from Morrison and Low would see the cost of establishing a joint entity at around $13.8million - all shared between the councils involved.

Mayor Tamah Alley summed it up after a strong discussion around the table, saying the joint CCO effectively “removes the politics from water.”

The councils have entered into a Commitment Agreement which reflected their mutual interest to investigate the option and sets out how they will work together through the process. 

The agreement provided for individual councils to withdraw at any time as the options were further defined, and the views of communities and stakeholders became known through public consultation.

Peter admitted the process would be “intensive and intrusive,” but Mayor Tamah said there has been a commitment made by the councils that no water consumer would pay more than if the model was kept in house.

“We want to be clear that no-one will be worse off going into this.”

Hearings would be scheduled at council after the consultation period, with deliberations and decision making during June 2025.

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