Final decisions made on Water Services Authority – Taumata Arowai levies

The Government has confirmed that the Water Services Authority – Taumata Arowai will be funded by a mix of Crown funding and levies payable by council or council-controlled organisation (CCOs) to help fund water services regulation.  

The new levies will come into effect on 1 July 2025. 

On Monday 19 May, Cabinet made the final decisions on the design and implementation of the proposed levies. 

The cost of the levy will be $20.658 million per annum for the next three years. This equates to an average annual cost of $4.14 (excluding GST) per person or around $11.17 (excluding GST) per average household. The levies will be charged to councils or their CCOs, who will determine the best approach for charging households and businesses. 

The Authority will also continue to receive Crown funding of $4.642 million per annum to cover functions and activities the Authority delivers that have a significant public good including supporting community-owned drinking water suppliers, public reporting and setting national standards that will achieve greater consistency and certainty for the sector and public.    

“The coming years will be a time of significant change for local government as the Government works with councils to deliver Local Water Done Well,” said Sara McFall, Head of Systems, Strategy and Performance.   

“As part of Local Water Done Well, it is important for New Zealand to have a robust and adequately funded water services authority that can work effectively with drinking water suppliers and network operators to ensure consumers have access to safe, reliable drinking water and well managed water networks.” 

“The Authority is committed to engaging proactively with councils, taking a proportionate approach to regulation and ensuring we work constructively with councils on cost-effective paths to compliance.”  

Dr McFall said regulations for the levies made under s 201 of the Water Services Act 2021 will come into force on 1 July 2025.  

The Authority received 51 submissions on the proposed design of the levies in a consultation that was conducted on behalf of the Minister of Local Government between 26 November and 24 January 2025. Views on the introduction of a levy were mixed. Most councils noted that the levy was an unbudgeted and unexpected cost. However nearly half supported a levy, noting the importance of effective regulation and the positive work of the Authority.  

“There was widespread appetite from councils to work more closely with the Authority. We look forward to doing this in the coming years.” 

You can find out more in the material referenced below. 

Links to further information

• Levies, fees and charges page on our website with final levy tables by year by council
• Summary of submissions which provides an overview of all the feedback we received and highlights the key themes that emerged
  
• Individual submissionsoutbound 
  
• Water Services (Levies on Water Services) Regulations 2025outbound
• Cabinet paperoutbound
• Cost Recovery Impact Statement (CRIS)outbound