Govt Approves Watercare Charter, Saving Aucklanders $899 Million Over Four Years

“Watercare’s infrastructure investment will be critical to supporting Auckland’s growth, with annual investments averaging $1.3 billion to renew and maintain water systems,” Mr. Brown said.

The New Zealand Government has approved the Watercare Charter, a landmark initiative aimed at ensuring affordable water services for Aucklanders. The Charter is projected to save households approximately $899 million in water and wastewater charges over the next four years, while simultaneously boosting service quality and record investments in infrastructure to support Auckland’s growing housing demands, according to Local Government Minister Simeon Brown.

Key Benefits of the Watercare Charter: The Watercare Charter, developed through consultation between the Secretary for Local Government, the Commerce Commission, and Auckland Council, is designed to deliver significant benefits for ratepayers:

Cost Savings: Aucklanders will save an estimated $899 million in water and wastewater charges between 2025 and 2028.

Improved Service Quality: The Charter sets minimum service quality standards, focusing on faster response times and reducing service interruptions.

Infrastructure Investment: The Charter enables Watercare to invest an average of $1.3 billion annually in infrastructure between 2025 and 2028, ensuring that Auckland’s water systems are upgraded and prepared to support future housing growth.

A Rejection of Labour’s Three Waters Reform: Minister Brown highlighted that Aucklanders had overwhelmingly rejected Labour’s controversial Three Waters reform, which sought to centralize water services across the country. The Government swiftly acted to repeal those reforms and restore local control of water assets.

“By ensuring the financial separation of Watercare from Auckland Council, our Government addressed the proposed 25.8% water rate hike, protecting Aucklanders from unsustainable increases,” said Mr. Brown. “The financial separation, enabled by the Local Water Done Well plan, ensures that Watercare can operate independently and continue to provide services without the burden of excessive rates.”

Future Regulation and Oversight: Watercare, now financially separated from Auckland Council, will be subject to interim economic regulation through the Watercare Charter for three years, with full economic regulation to be introduced in 2028 by the Commerce Commission. This system of interim regulation will allow for better service delivery while maintaining a focus on Auckland's water infrastructure needs.

“Watercare’s infrastructure investment will be critical to supporting Auckland’s growth, with annual investments averaging $1.3 billion to renew and maintain water systems,” Mr Brown said. “This ensures we have the necessary capacity to support new housing developments and city expansion.”

Supporting Auckland’s Growth: The Charter will also provide Auckland Council with greater financial flexibility by freeing up its balance sheet, enabling it to invest in other critical city infrastructure projects that support growth across the region.

The Commerce Commission will monitor Watercare’s performance under the Charter until 2028, when full economic regulation will be implemented, extending to all water service providers once the Local Government Water Services Bill is passed into law in the coming year.

Collaboration for Success: Minister Brown expressed his gratitude to the officials from the Department of Internal Affairs, Auckland Council, and the Commerce Commission for their collaborative efforts in delivering the Charter. “This partnership has resulted in a solution that balances affordability for consumers with the need for substantial infrastructure investment, paving the way for Auckland’s future growth,” he concluded.