Water supply and sanitation in New Zealand is provided for most people by infrastructure owned by territorial authorities including city councils in urban areas and district councils in rural areas. As at 2021, there are 67 different asset-owning organisations. There is widespread evidence of ageing and failing infrastructure for the three waters (drinking water, stormwater and wastewater), and growing awareness of a multi-billion dollar national infrastructure deficit. In some regions there are forecast to be huge, and in some cases unaffordable cost challenges for local authorities. The challenges for local government include funding infrastructure deficits and preparing for large re-investments that are estimated to require $110 billion over the next 30 to 40 years. As one example of the scale of expenditure required, in May 2021, the Wellington City Council approved a 10-year plan that included expenditure of $2.7 billion on water pipe maintenance and upgrades in Wellington city, and an additional $147 to $208 million for plant upgrades at the Moa Point wastewater treatment plant. There are also significant challenges in meeting statutory requirements for the safety of drinking water, and the environmental expectations for management of stormwater and wastewater. Climate change adaptation, and providing for population growth add to these challenges. A major programme of nationwide reform is being developed by central government, with the aim of rationalizing the provision of services for the three waters. It is proposed that a small number of large publicly owned entities will be established to own and manage the three waters assets across the country. The reforms include complete separation of asset ownership from the existing territorial authorities. The nationwide reform programme is being developed in partnership with local government and iwi/Māori as the Crown's Treaty partner. In late October 2021, the Labour Government launched its Three Waters reform programme, which aims to centralise the management and provision of water utilities services by 2024. In mid-February 2024, the National-led coalition government repealed the Three Waters programme and announced its own water reform programme known as "Local Water Done Well." The privately owned water supply schemes that service many small rural areas are not included in the reform programme.
Access Access to water and sanitation was declared a human right by the United Nations General Assembly on 28 July 2010. The 2030 Agenda for Sustainable Development was adopted by all United Nations Member States in 2015. At its heart are 17 Sustainable Development Goals, including the sixth of the 17 goals which is to ensure availability and sustainable management of water and sanitation for all. While the New Zealand Government has expressed its commitment to meeting the Sustainable Development Goals, it is yet to announce any specific policy or data strategy for that purpose. Access to drinking water provided by registered suppliers (as opposed to self-supply) can be estimated from the reports into the safety of drinking water from registered suppliers that are published by Institute of Environmental Science and Research (ESR). As of 15 April 2020, the Drinking Water online database included records of water supplied to an estimated population of approximately 4.1 million. This indicates that around 85% of the estimated total population of New Zealand at that date receive water from a registered supplier. The balance of the population (approximately 15%) rely upon small self-managed supplies including roof rainwater collection systems. In their National Performance Review 2020–21, Water New Zealand reported that 86% of residential properties are connected to a water network, and 85% connected to a wastewater network.
Three waters assets and services Key data about the three waters (water, wastewater, and stormwater) is made publicly available in a National Performance Review undertaken by an industry body Water New Zealand. This review has been undertaken annually since 2008, to provide a performance assessment of service provision and the protection of public health and the environment. The participants in the 2020–21 review included 38 (of 64) service providers, with service areas covering 87% of the New Zealand population.
Three waters assets The 38 participants in the 2020–21 review (covering 87% of the population), manage assets with a total book value exceeding $40 billion. A summary of assets is given in the table below.
Capital and operational expenditure The 2020–21 National Performance Review provides a summary of capital and operational expenditure on the three waters assets.
Affordability Average water and wastewater charges are slightly under $850 per year. However, water and wastewater charges vary significantly around New Zealand. Consumers in some areas are paying over three times as much as for water as those in other areas ($863/year versus $262/year). For wastewater, the range in charges is even greater at over ten times as much ($1,217 versus $116/year). In the most expensive jurisdiction, the average customer will have a water and wastewater bill of over $1,700. For those who depend on the single living-alone superannuation payment, the water and wastewater bill in the most expensive region constitutes over 8% of their income. For those dependent on the sole parent support payment, it constitutes more than 10% of their income. The challenges for the affordability of modern safe water supplies in small townships were highlighted in 2021 when the Buller District Council proposed to increase the water rates in Inangahua Junction. The increased rate was proposed to be $1800 per household by 2025 (almost four times the current rate), and $2000 by 2030. A former councillor said: "Most people in Inangahua Junction are pensioners; they're on low fixed incomes and they simply have no ability to pay these sorts of fees". The mayor of Buller District said that the planned increases related to the requirements to comply with government-mandated drinking water standards for public water supplies.
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