Southern Waters will take over drinking water, wastewater and stormwater services across three districts. (File photo) Photo: RNZ / Rebekah Parsons-King
Central Otago, Clutha and Gore district councils have received approval from the Department of Internal Affairs to create the South Island's biggest joint council water company.
The new entity called Southern Waters will take over drinking water, wastewater and stormwater services across the three districts from July 2027, under the government's Local Water Done Well framework.
The plan, published on the websites of the three shareholding councils, projected that significant capital investment would be necessary, resulting in 110 percent increases in residential water charges, on average, by 2034.
The cost of water services for the average residential household was expected to rise from $1,763 to $3,705 over that time.
Gore District Council chief executive Debbie Lascelles said the milestone reflected an enormous amount of work by staff from all three councils, which submitted the plan to the secretary for local government in August.
"It endorses our work to put in place the foundations for a well-governed water services company that will meet the needs of our communities for decades to come," she said.
Clutha District Council chief executive Steve Hill said it set out a clear pathway to keep delivering safe and sustainable water services, while also while investing in new infrastructure to meet growth and environmental standards.
Central Otago District Council chief executive Peter Kelly said it showed that local solutions could work when there was commitment and trust.
"This is a positive step forward," he said.
The Southern Waters plan included a commitment that no consumer would pay more for their water services than they would under an in-house model, for the same level of service and investment.
The councils also planned to recognise rural water as a distinct service and give each district an equal say in decisions.
Earlier, Waitaki District Council opted to back out of the partnership and create its own water services plan, leaving the remaining three councils trying to work out if the Southern Waters model would still work.
Analysis by Morrison Low Advisory, tabled at an extraordinary Clutha District Council meeting, found ratepayers across the three councils would collectively save approximately $392 million by 2054 through setting up the joint entity, compared to in-house models.
The councils said the next step for Southern Waters was to recruit senior leaders and prepare its governing documents.
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