A partnership agreement between Kaipara District Council and the Te Tai Tokerau Water Trust (the Trust) to deliver a major infrastructure package for Dargaville and the Northern Wairoa Agricultural Delta has been signed.
The finalised agreement follows the announcement earlier this year by Minister Regional Development, Shane Jones that the Government would loan $17.5 mllion to the Trust to construct a pipeline connecting its Te Kopuru reservoir to Dargaville, expanding its water distribution network to extend as far as the Awakino River area on the east side of Dargaville. The pipeline construction will be combined with a major upgrade of the stopbank and land drainage systems between Dargaville and Te Kopuru.
Construction of the stopbank and pipeline is set to start immediately and will take two years to complete, the Council confirmed today.
It says the improvements in flood protection and water security unlock more economic opportunities across the district by making previously flood and drought-prone land suitable for higher value horticulture and market gardening.
Council is working with the Trust to make untreated (non-potable) water from the Trust’s network available to several industrial customers currently using council water supply. As industrial customers switch to the Trust’s supply for some or all of their water needs, more treated (potable) water will become available for households and other users. This shift is expected to ease pressure on the council supply and help reduce water restrictions in Dargaville and Baylys Beach.
Council funding for the agreement is split between the stopbank works and water supply.
Council has already committed $1 million towards the 11km stopbank, supplementing the Trust’s $7.8 million grant from the central government’s Regional Infrastructure Fund and in-kind support from landowners along the pipeline route. This investment is debt funded and initially paid through general rates.
Council will also contribute $1.5 million towards the pipeline construction costs as well as an annual contribution of up to $675,000 from around late 2027. The one-off $1.5 million cost will also be debt funded and paid through general rates, reflecting the economic development investment, while the annual contribution will be funded via targeted water rates. Water rates are expected to see an increase with less customers to share the operational costs. In time, this annual contribution could be transferred over to the regional multi-council controlled organisation (CCO) set up through the recent Local Water Done Well legislation.
Council says the partnership agreement leaves the door open for further collaboration opportunities with the Trust, such as the direct sharing of water between the two parties. To support this, a Share Option Deed has been signed, giving Council the right to purchase shares within the next two years. Any purchase of shares would require public consultation and further investigation into other options.
Alongside the partnership agreement with the Trust, Council is already taking several measures to address the regular water restrictions endured by Dargaville and Baylys Beach residents and businesses, including upgrading the pumps at Rotu, improving the Waiatua Dam, monitoring the Waiparataniwha streams to better understand their performance during droughts, and updating the drought management plan. These measures alone are anticipated to reduce the frequency of water restrictions in Dargaville and Baylys Beach from this coming summer, Council said in a statement.
Read the full council report on the Kaipara District Council website. The report will be noted at the council meeting on Wednesday 24 September.
