In New Zealand, $164-180bn is needed over the next 30 years to address ageing infrastructure – an investment of $5.5-$6bn every year. Investment of this scale demands collaboration between the government (at central, local and regional tiers), private sector, and communities to ensure quality, affordable, and sustainable services while preserving resources for future generations.
Despite the complexity, one certainty remains: the water sector transcends beyond merely pipes and pumps and will be at the forefront of driving transformative change for the benefit of our communities and environment.
The New Zealand Government's Local Water Done Well (LWDW) reforms aim to address the country’s water infrastructure challenges. LWDW provides local councils with options for delivering reliable and safe water services to communities over the next 30 years and beyond.
Under LWDW, councils can choose to deliver water services themselves, either as an inhouse business unit or single council-controlled organisation (CCO), or to collaborate with other councils by setting up a complex multi-council CCO. Either path requires the development of Water Services Delivery Plans to set out a strategy that demonstrates cost-effectiveness and affordability, financial sustainability, and compliance with new regulations.
Key levers to drive change
Implementing policy reforms that support sustainable investment and asset management practices, preserve value, and ensure equitable access to resources.
What are the requirements for water and wastewater service delivery?
The service must be financially sustainable, ensuring that revenue from water services covers all associated costs, including operational, investment, and financial expenses.
Councils must ensure adequate investment to address the replacement and renewal of existing infrastructure and the construction of new facilities to meet future demands.
The service must be cost-effective and affordable, with pricing reflecting the true cost of delivery.
Funds must be ringfenced, meaning they are kept separate from other income and expenditure of the council.
Plans must leverage appropriate technology to boost efficiency and reliability, lower costs and reduce environmental impact.
Compliance with other new financial and regulatory requirements is essential
The evolving landscape and important milestones
Please click the image to view a high resolution version.
How we can help you
Wherever you are on your water journey, we’re here to help. We offer integrated services that modernise water service delivery and optimise infrastructure by balancing cost, risk, and performance. Using technology and data, we help to enhance insight, boost efficiency, and improve customer experience. Our expertise covers policy settings, regulatory frameworks, assets, investment drivers, large-scale infrastructure, and environmental management for delivering water services in various environments.
Strategic and financial planning
Strategic planning, demand and financial modelling, debt structuring, funding and financing advice.
Customer and service delivery enablement
Customer experience and water service-led operating model design for customer-centric digital transformation.
Commercial advisory
Feasibility studies, business cases, market sounding, funding applications, transactions, negotiations and contracts.
Regulatory advice
Regulatory strategy, price setting, cost benchmarking, regulatory submission development and review, and regulator engagement services.
Asset management
Optimisation of water assets, asset management systems, strategic asset management plans, investment decision making and efficiency in operations and maintenance.
Governance, controls, and assurance
Fit-for-purpose governance design and practice cadence, compliance frameworks, ownership models for risk management and controls, and oversight and assurance practices.
