Additional councils may now join Central Otago in its joint delivery of water services - under the new Local Water Done Well model.

At the Central Otago District Council meeting on Wednesday, chief executive Peter Kelly said Timaru was now interested in joining, along with the existing three councils of Gore, Clutha and Waitaki.

Mackenzie and Waimate district councils had also been approached to be involved in the regional Council-Controlled Organisation (CCO), and a water services delivery plan (WSDP) needed to be finalised with the Government by September 3, 2025.

In his report to council, Peter said Otago and Southland had a recent history of working together on water service challenges, and as a result, the Otago-Southland Mayoral Forum directed chief executives to establish the Otago-Southland Local Water Done Well (LWDW)

Working Group to explore a range of regional delivery models. 

The Morrison Low report ‘Local Water Done Well Review’ was completed and presented to Otago-Southland councillors in November, and found that without structural changes, future water service delivery would become unaffordable, with 76 per cent of residential users in

the region facing doubled water bills within 10 years.

CODC chief executive Peter Kelly has given others councils until March to decide if they will join them in the region water model. FILE SHOT

Additionally, workforce shortages and infrastructure demands meant a joint asset-owning entity would be the most effective solution.

A project team has been formed to define what a joint CCO would look like and how it compared against other practicable options. 

Project costs to develop, consult and submit a WSDP for a CCO were estimated to be $540,000, and would be equally apportioned between the four (or more) councils.

Central Otago deputy mayor Neil Gillespie chaired this week’s meeting in the absence of Mayor Tamah Alley and said listening to the councillors around the table, there was definitely a commitment, not just from its council but all the councils involved, to work together to reach

a beneficial outcome for ratepayers to manage the costs of three waters delivery, and to share expertise and staff across the councils involved. 

“Therefore, a joint approach is an option we should explore, amongst any other practicable options."

A view of the water organisation delivery model options with supporting pros and cons, would be presented to the council in March for a decision on a preferred delivery services model and options to consult on.

The council also agreed to a consultation pathway via the Local Government Water Services Preliminary Arrangements Act 2024 as an alternative consultation.

All the participating councils would consult over the late April – May period with three options for each community to consider: retaining the status quo, establish a single council CCO, or join with the other councils and establish a regional CCO.

Cr Sally Feinerman questioned if costs then had to be adjusted if the new councils came onboard, and Peter confirmed they would need to “close the door” on that offer in March for them to join, in order for staff to work the new figures into the proposal.

Cr Cheryl Laws, who was on the working group, said the CCO was a good model because if they could find some savings and share areas of expertise, then it would be better for everyone in the long term.

Cr Martin McPherson said the challenge they faced was how they communicated those costs to their ratepayers, “because we struggle around this table with the complexities of it.”

Cr Tracy Paterson said regardless of the outcome, staff had to do the work because ministers and the Department of Internal Affairs had said the status quo to stay the same was not an option.

“They have told that to our faces.”

Have a story to share?

Contact [email protected]