An historic milestone for New Zealand water services

Formally approved by the Secretary for Local Government on 23 July 2025, KPMG New Zealand and Aurecon are incredibly proud to have supported Hamilton City and Waikato District Councils to achieve a significant milestone as the first councils in New Zealand to receive formal government approval for a joint water services delivery plan (WSDP).

Reflecting exceptional leadership and vision from both councils, this landmark achievement establishes the foundation for IAWAI – Flowing Waters, the country's first joint council-controlled organisation (CCO) for water services, serving 280,000 people across 91,000 connections.

"Aurecon is privileged to have supported this transformation through our partnership with KPMG,” said Dr Deborah Lind, Aurecon Water Industry Lead. “We’d like to acknowledge the exceptional leaders from both councils for contributing to the success of the WSDP.”

The councils' determination to work collaboratively under the Government's Local Water Done Well (LWDW) framework required extensive planning and coordination.

"This represents a genuine step forward for collaborative local government in New Zealand," said Keith Martin, Waikato District Council Three Waters Manager. "Our joint working group was determined to show that councils can work together effectively on complex infrastructure challenges. The specialist expertise from Aurecon and KPMG supported us in developing a plan that will deliver lasting benefits for both our communities."

Bringing together technical asset management planning and regulatory expertise, the partnership delivered the plan within demanding timelines, and ahead of government requirement, with the plan submitted in early July and approved within weeks – a testament to the councils' proactive approach and clear vision for their communities' future.

The Hamilton City and Waikato District Councils WSDP includes:

• A ten-year $3.6 billion investment plan into shared water services, with 67% driven by growth requirements
• A comprehensive transition strategy for establishing New Zealand's first joint water CCO
• A financial sustainability framework addressing affordability for ratepayers across both council areas
• Growth-enablement planning supporting new housing and business development
• Environmental protection measures for the culturally significant Waikato River.

The WSDP ensures cost increases for vital infrastructure are more affordable while delivering safe and reliable drinking water and wastewater services. It also enables both authorities to access enhanced borrowing capacity through the Local Government Funding Agency and sets IAWAI – Flowing Waters up to begin operations from July 2026. The new entity will manage critical infrastructure projects including wastewater plant upgrades, and long-term servicing strategies for high-growth areas.

Hamilton City Council and Waikato District Council have designed their collaboration as a stepping stone toward potential regional expansion, with both councils committed to considering a larger Waikato-wide model over time.

“The collaborative approach to one of New Zealand's most complex infrastructure challenges demonstrates what's possible when local government leaders commit to working together. The councils' leadership and commitment to collaboration has set a new standard for water services delivery in New Zealand,” said Mair Brooks, Partner KPMG.

"We’re pleased to have been a part of this and to have had the chance to demonstrate the effectiveness of the LWDW partnership between KPMG and Aurecon through supporting the successful delivery of the WSDP."

The momentum is building

Just days after Hamilton-Waikato received approval, Whangārei District Council voted unanimously to establish a Northland-wide CCO, bringing together three councils to serve 100,000+ consumers.

With $120+ billion needed for New Zealand's ageing water infrastructure over the next 30 years, Dr Lind notes that collaborative models provide the pathway to achieve essential upgrades while keeping costs manageable for ratepayers:

"These councils are proving that working together creates value for everyone – better services, more affordable costs, and stronger communities."

IAWAI – Flowing Waters (the new joint CCO) will be fully operational from July 2026, managing everything from wastewater plant upgrades to long-term growth strategies.

For more information and support with LWDW, head to Water - KPMG New Zealand and Water – Aurecon.

About Aurecon

Aurecon is an international design, engineering and advisory company bringing ideas to life to create a better future for people and the planet. With offices spanning the Asia-Pacific, Aurecon brings innovative and sustainable solutions to some of the world’s most complex challenges across over a dozen sectors. Our people are regularly recognised for their achievements in innovation, sustainability, technical capabilities and workplace cultures. An owner managed company, we are as diverse as we are dynamic, and as curious as we are clever. For more information about Aurecon, please visit www.aurecongroup.com.