Three southern councils have reaffirmed their commitment to forming a jointly-owned Council Controlled Organisation to deliver water services to their communities.
Southern Water Done Well (SWDW) partners Central Otago, Gore and Clutha district councils have officially signed off on establishing a joint Council-owned water services delivery entity and a joint Water Services Delivery Plan (WSDP).
The decision comes after modelling showed that a southern jointly owned Council Controlled Organisation (CCO) remains the most affordable option for the future delivery of water services, even following the departure of SWDW foundation partner Waitaki District Council.
Analysis by local government specialist Morrison Low Advisory identifies that, from the establishment of the new CCO through to 2054, ratepayers will collectively save $392 million.
The new organisation will be the largest joint water services entity in the South Island, bringing all water, wastewater and stormwater services provided by the three councils under one roof. The entity will serve a population of 59,000 across the three districts and look after:
- 23,814 water connections,
- 3,161km of water pipeline,
- 24 urban water supplies, and
- 10 rural water supplies.
The new entity will assume all existing water-related debt from the three councils, as well as full responsibility for setting budgets, planning capital works, and determining charges for water services.
Southern Water Done Well chair and Central Otago District Mayor, Tamah Alley said the entity will be built around a set of core principles designed to protect local communities and ensure fair, effective governance.
“The model is regionally focused, community-driven, and ensures that decisions about water services remain in local hands,” Mayor Alley said.
“We (SWDW councils) share a common goal to provide the most efficient and affordable water services for our people. Working together in a joint CCO remains the best way for councils to achieve that goal for the people of today and the generations of tomorrow.”
One key principle of the new entity is that no community will pay more for the same level of service and investment than they would have under their council’s in-house model. This means local pricing will continue for some time, Mayor Alley said.
Every shareholding council will have an equal say through a shareholders’ committee, ensuring all partners have the same voting power.
The shareholders’ committee will play a central role in governance, including recommending board appointments and setting the Statement of Expectations that will guide the entity’s operations.
Mayor Alley said the CCO model was designed to be scalable and flexible.
“We remain committed to collaboration and would welcome future conversations with any council interested in being part of a community-led, regional solution,” she said.
The new water services entity is scheduled to start operations by 1 July 2027.
