19 Feb 2025

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Christchurch City Council will ask residents for feedback on how the city’s three water services should be delivered in future.

The three delivery models: 

In-house model 

·   Governance and operational control remain with the Council. 

·   Funding comes from existing revenue streams with financial ring-fencing for transparency. 

·   The Council determines how services are charged, with flexibility to use general rates, targeted rates, or volumetric. 

·   Compliance responsibilities lie entirely with the Council. 

Council-Controlled Organisation (CCO) 

·   Independent governance structure, with professional boards managing operations. The board cannot contain elected members or Council staff. 

·   Assets may either remain under Council ownership or transfer to the WSCCO. 

·   Funding is separated from general Council operations, with borrowing capacity up to 500% of revenue. 

·   Charges must shift from rates to fixed fees or volumetric pricing within five years. 

·   Responsibility for complying with current and anticipated regulations. 

Two-Waters Council-Controlled Organisation (Two-Waters CCO) 

·   Water supply and wastewater managed independently by the WSCCO, while stormwater remains under Council control. 

·   Assets may either remain under Council ownership or transfer to the WSCCO for water supply and wastewater. 

·   Separate financial frameworks for WSCCO and stormwater services, with borrowing capacity of up to 500% for WSCCO-managed services.

Today the Council approved seeking public feedback on three different models for delivering water supply, wastewater and stormwater in the future.  

The options of enhancing the status quo with an in-house delivery model, a water services Council-Controlled Organisation (CCO), and a Two-Waters (water supply and wastewater) Council-Controlled Organisation were evaluated as part of the Local Water Done Well Indicative Business Case.  

The Indicative Business Case was completed in response to the Government’s Local Water Done Well (LWDW) reform, which aims to address long-standing water infrastructure challenges around the country.   

“We need to make sure water services are delivered sustainably and efficiently for the people of Christchurch who tell us time and time again how important water is to them,” Mayor Phil Mauger said. 

“No matter what model we go with, we’ll be collaborating with other Councils to reduce costs and enhance our services, so we can deliver the best outcomes for our communities through the Government’s Local Water Done Well changes.” 

"The Indicative Business Case has identified the in-house model as our proposal, but we need to hear what the public thinks.” 

“In March we’ll go out for feedback with the pros and cons of each different model outlined for the public to take into consideration,” the Mayor said.   

“We’re in a fortunate position in Christchurch where each model can be financially viable, as well as meet the strict water services quality, environmental and economic requirements that are being put in place to protect public health and ensure ratepayer money is being spent on water services.”  

“Under all the models, our services will be maintained or improved and there won’t be much difference in terms of rates,” Mayor Mauger said.  

The Government is implementing the LWDW framework in three legislative stages, each outlining specific requirements to transition to the new water services environment. 

Councils are required to select a proposed water service delivery model as part of a Water Services Delivery Plan which must be finalised and submitted to the Department of Internal Affairs by September 2025.