Waikato Water - the region’s next billion-dollar company
Saturday, 28 June 2025
More than $1.6 billion worth of water infrastructure assets will soon be transferred to what will become one of the largest companies in the region - Waikato Water Ltd.
Before those assets are handed over to the company being formed after Waikato Water Done Well (WWDW) consultation, each council will pay set up costs of up to $16.5 million.
While ratepayers may be feeling over-watered after the previous government’s Three Waters proposal, and now the coalition government’s version - Local Water Done Well - councils in the Waikato have been scrambling to put together new water services plans before the September 3 deadline.
Local mayors and council chief executives have described the overhaul as the biggest, most important legacy decision they have had to make since council amalgamations in 1989.
Most have openly said they would have preferred more time, and councillors have voiced concerns over financial forecasts and assumptions, but the six councils expected to initially make up the new company say ratepayers will likely benefit in the long term.
The seven councils involved in WWDW are Waipā, Matamata-Piako, Hauraki, Ōtorohanga, Waitomo, South Waikato and Taupō.
The management of stormwater services will remain with individual councils.
While Taupō has opted to run its water services in-house for the time being, it has been included after signalling its intent to join Waikato Water Ltd in the future, and has until July 1, 2030 to make that decision.
Thames-Coromandel District Council will join a joint Bay of Plenty organisation with Tauranga City Council and Western Bay of Plenty District Council.
The Waikato Times has analysed initial set up documents for Waikato Water Ltd, the council-controlled organisation (CCO), which will own, manage and maintain drinking and wastewater infrastructure for around 200,000 residents, and will generate $155 million in revenue by July 2028.
Waikato Waters Ltd will initially be governed by a group of interim directors made up of the chief executives of the founding councils who will be replaced by an establishment board following the company’s incorporation.
A chairperson will be appointed by a Shareholder Representative Forum (SRF), along with two additional directors.
Each council will appoint one representative to the SRF, which provides oversight and makes strategic decisions on behalf of shareholders.
Councils will transfer their water assets, and selected staff, to the new company in stages starting with the South Waikato, Waitomo, and Waipā on July 1, 2026.
They will be followed by Matamata-Piako on October 1, 2026, and Ōtorohanga and Hauraki on July 1, 2027.
When each council completes its asset transfers it will be issued shares in proportion to the number of total water connections within each council's service area.
Councils will have to take out loans of up to $16.5 million to cover start up costs, with those loans being handed over to Waikato Water Ltd after assets have been transferred.
Waipā District Council chief executive Steph O’Sullivan is chairperson of a chief executives’ working group at the forefront of the proposal.
She said details such as where the new company will be based, who it will employ, and who ratepayers will pay their bills to, are yet to be determined but would be made within the next six to nine months.
“Those considerations will be top of mind for the interim board.
“They will want to bring their teams together and start building culture in the organisation.
“A lot of work done has been done in recent years, and now we're moving at speed.
“We need to make sure we are following really good change management disciplines and frameworks.”