Help us clarify when downstream suppliers have responsibilities under the Water Services Act 2021
We want your feedback to help clarify when downstream suppliers have responsibilities under the Water Services Act 2021
Every day, drinking water suppliers play a vital role supporting the health and wellbeing of people across New Zealand by providing them with safe, reliable drinking water. This includes downstream suppliers.
At a high level, a downstream supplier is one that connects to another drinking water supply and then on-supplies that drinking water to others. This high-level definition could cover many situations, but we are seeking to capture only those situations as suppliers where it is clearly contemplated by the Water Services Act 2021 (the Act) and provide guidance that gives greater clarity for suppliers.
The Water Services Authority – Taumata Arowai is engaging on proposed factors and scenarios to clarify when downstream drinking water supplies exist and have responsibilities under the Act. We want your feedback.
Some groups have told us the current settings are unclear
We’ve heard that developers of new subdivisions and operators of retirement villages, prisons, airports, ports and large industrial sites that receive water from another supplier want greater clarity on:
- whether they are a drinking water supplier under the law
 - what their responsibilities are
 - the extent of an upstream supplier’s responsibilities in situations where one party provides bulk supply to another supplier for distribution to their customers.
 
We’ve proposed some factors and scenarios to guide decision making, and want your feedback on them
By receiving your feedback on proposed factors and scenarios for downstream suppliers, we aim to:
- provide greater clarity about who ‘upstream’ and ‘downstream’ suppliers are, and their responsibilities
 - discuss the factors and scenarios with the sector to see if they can be refined or added to
 - enable cost-effective approaches that ensure drinking water suppliers provide good quality water to the communities they serve.
 
Find out what’s proposed
- Read the engagement document (includes questions)
 
Sign up for an information session
You’re invited to join us at an online information session where we’ll provide an overview of what’s proposed and answer your questions and here about your own situations:
- 4 November 12 noon-1pm – Register hereoutbound
 
For those who are unable to attend, we’ll record this information session and publish it here. That way you can find out more at a time that’s convenient for you.
You can find a link to our Frequently Asked Questions below.
Have your say by 28 November, 2025
This feedback period runs until 5:00pm, Friday 28 November 2025.
We encourage you to provide feedback by:
- Sending us your responses to the questions in the engagement document, or providing us with any other relevant information:  
- by email at korero@taumataarowai.govt.nz
 - by post to Level 2, 10 Brandon Street, PO Box 628, Wellington 6140, New Zealand.
 
 
Please include your name, or the name of your organisation, and contact details in your responses. Appendix 3 of the engagement document sets out in more detail our approach to release of information under the Official Information Act, the Privacy Act, and our approach to publication of responses.
Questions?
If you have questions about this engagement, or would like to talk with one of us about downstream supplies, please email us at: korero@taumataarowai.govt.nz.
Frequently Asked Questions: Downstream drinking water supplies
Why is the Water Services Authority - Taumata Arowai reviewing how ‘downstream suppliers’ are defined?
We’ve heard that there’s uncertainty about who qualifies as a drinking water supplier under the Act, especially for groups like retirement villages, new subdivisions, airports, ports, prisons and large industrial sites. This review aims to clarify when an organisation that connects to an existing drinking water supply and then provides water to others is considered a “downstream supplier”.
What is a downstream supplier?
A downstream supplier is someone who connects to a drinking water supply (called the upstream supply) and then on-supplies that water to others. However, this could technically apply to many situations, so we’re seeking to clarify what is intended to be captured by the Act and provide guidance that practically assists with greater clarity for suppliers.
What is the Authority’s goal from this work?
Our aim is to provide as much certainty as possible about when a person or organisation becomes a drinking water supplier under the Act - and when they do not. This helps reduce ambiguity and ensures consistent compliance expectations.
Who will this engagement be relevant for?
This engagement will be most relevant to:
- councils and water suppliers who provide water to multiple connected properties
 - operators of private or institutional networks such as retirement villages, prisons, industrial parks, ports, and airports
 - developers and owners of new subdivisions connecting to council networks.
 
What exactly will we be asked to comment on?
You’ll be asked to provide feedback on the factors and scenarios that outline when a downstream supply is likely to exist.
These scenarios will be high-level examples designed to test how the Act applies in practice.
How and when can stakeholders provide feedback?
Public engagement is planned to run from 23 October to 28 November 2025.
Feedback will be collected through:
- Our online engagement portal, and
 - One or more webinars for councils and downstream suppliers (excluding international ports and airports).
 
Ports and airports will be contacted directly and we’ll work with their industry associations to identify the best way to gather input.
What happens after the engagement closes?
Feedback will be used to develop a policy position on downstream supplies.
Depending on what we learn, this position may later form part of a formal consultation process, and could inform possible rule changes.
Will there be new or different rules for downstream suppliers?
We’re also considering whether there should be specific rules for downstream suppliers and their upstream suppliers as part of the second stage of the Drinking Water Quality Assurance Rules review. This is still under consideration and will depend on feedback and further analysis.
How will this affect existing suppliers or connected users?
That depends on the final policy position. The intention is not to impose unnecessary requirements, but to ensure clarity and consistency about who is responsible for managing drinking water safety and quality.
How can I find out more or ask questions?
You can:
- email korero@taumataarowai.govt.nz with any questions
 - attend the information session on 4 November, 12 noon-1pm - Register hereoutbound
 - review the discussion documents.