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What does the future of water services look like for our district?
It’s time to have your say on water.
Welcome to our consultation on the long term future of how we deliver water services in the Timaru District, and possibly beyond.
This is one of the most important consultations that we’ll undertake as it will have a critical and long lasting influence on how we deliver one of our core services.
Timaru was one of the lead campaigners against the original ‘Three Waters’ plan through Communities 4 Local Democracy, and we’re pleased that through the Local Water Done Well policy that we are able to shape our own ideas for delivering sustainable water services that continue to be locally owned and locally controlled.
It’s been a long road in enabling you to have a say in this matter, and I’m really pleased that you’re now able to today.
While Timaru District is in a good position as far as water is concerned, we face long-term challenges for affordability and ensuring that water remains a priority in the face of many other competing services. This is one of the reasons that we’re proposing moving to a Council Controlled Water Services Organisation as part of this consultation.
In this scenario, we create a professionally run council owned organisation solely focused on delivering high quality and affordable water services for urban, rural, commercial and industrial customers. One that is led by a professional board, but still owned by and accountable to the community through your elected council.
Affordability is one of the key measures of the success of our proposal. Independent modelling has shown that in the long-term water rates will be less expensive if services come from a CCO, and even cheaper if we combine services with our neighbours.
This efficiency, and the ability to share scarce staffing resources, is the reason that we’re proposing to work with neighbouring councils on a joint company that will provide services across the Central South Island region.
I feel that together we’re a lot stronger than the sum of our parts.
As you read through this page I hope you keep an open mind to the possibilities that it presents.
We’re not proposing selling off any assets or removing local control. This isn’t a pathway to privatisation or amalgamation. Our proposal is to create a council owned organisation that will be solely focused on benefiting our community and, hopefully, our neighbours as well.
Our councils have a history of working together well, whether that’s through our existing arrangements on water through the Downlands Rural Scheme to smaller collaborations on waste, roads, liquor licencing and environmental health.
As a council we fought hard for communities all over the country to have their say, so please take the time to have a read of these pages and then tell us what you think.
Our Water Options
The Government has provided councils across the country with five options for delivering water services in their districts.
None of the options would result in privatising water services. Councils have been evaluating the options to work out which is best for their communities. We have been looking closely at the options available to us, including discussing the options with our neighbouring councils and getting some expert advice. We think there are three viable options, all of which are expected to meet the Government’s requirements.
It’s important to note that under all the options considered below, the water assets remain in public ownership, either directly in the council or in a council owned organisation. The amounts quoted are estimates based on future costs and projected savings and efficiencies.
All figures below are estimates of residential water price in 2034 and are not harmonised across districts.
Option 1: Keeping Water Services in-house and overseen by our Council
Water services would continue to be delivered through the Council, but with some changes to meet the Government’s new requirements. We would probably set up an internal water services unit within the Council to help us meet these requirements.
Estimated Cost: $1,900 per year
Water services would continue to be delivered through the Council, but with some changes to meet the Government’s new requirements. We would probably set up an internal water services unit within the Council to help us meet these requirements.
Estimated Cost: $1,900 per year
Option 2: Establishing our own separate water organisation
This new water organisation would be separate from our Council, but we would own 100% of it and appoint its directors. The new organisation would be fully responsible for all day-to-day operations, maintenance, planning for future water needs, and repaying any water-related debt.
Estimated Cost: $1,860 per year
This new water organisation would be separate from our Council, but we would own 100% of it and appoint its directors. The new organisation would be fully responsible for all day-to-day operations, maintenance, planning for future water needs, and repaying any water-related debt.
Estimated Cost: $1,860 per year
Option 3: Joining with neighbouring councils to set up a new water services organisation (Preferred)
The new joint organisation would own, operate, and maintain water services for all the shareholding councils. We would own part of this organisation with the partner councils. We would also give it direction through a special “Statement
of Expectations”, which the councils would develop jointly, and which the organisation would need to give effect to.
We’ve modelled two potential combinations:
Option 3a Option 3b Waimate, Mackenzie and Timaru Districts Waimate, Mackenzie, Timaru and Waitaki Districts Estimated Cost: $1,670 per year
Estimated Cost: $1,640 per year
The new joint organisation would own, operate, and maintain water services for all the shareholding councils. We would own part of this organisation with the partner councils. We would also give it direction through a special “Statement
of Expectations”, which the councils would develop jointly, and which the organisation would need to give effect to.
We’ve modelled two potential combinations:
| Option 3a | Option 3b |
|---|---|
| Waimate, Mackenzie and Timaru Districts | Waimate, Mackenzie, Timaru and Waitaki Districts |
Estimated Cost: $1,670 per year | Estimated Cost: $1,640 per year |
Other Options Considered
We also considered the option of establishing a consumer trust organisation, either partly owned by the Council and partly by a trust, or wholly owned by a trust.
We decided these options weren’t right for us as the organisation would probably have to borrow money from banks, which would be more expensive than borrowing through the Local Government Funding Agency. Under these options, we would also have less control over critical decisions affecting water services compared with the other options.
We also considered the option of establishing a consumer trust organisation, either partly owned by the Council and partly by a trust, or wholly owned by a trust.
We decided these options weren’t right for us as the organisation would probably have to borrow money from banks, which would be more expensive than borrowing through the Local Government Funding Agency. Under these options, we would also have less control over critical decisions affecting water services compared with the other options.
We think option 3 would best support our community
Option 3 is our preferred option because it provides us with the best long-term benefits. We think it would enable more investment, better spread out fixed costs such as compliance, and joining with others would create efficiencies that would help to drive down prices.
There is potential for a different mix of councils to join in this water organisation, and we have outlined the two options that we think are more likely to happen. If we do continue with this option, who we work with will also depend on the outcomes of their consultation.
Full Consultation Document
Background Information and External Links
What is Local Water Done Well? (External Link)
Video of Public Workshop on Local Water Done Well (External Link)
Video of Selection of Preferred Option for Consultation (External Link)
Last updated: 15 May 2025