Current Work Being Undertaken

New Zealand’s local councils are advancing through the Local Water Done Well reform process, and at this stage, they should be making a key decision on how to deliver water services going forward.

Councils have two primary options: proceeding independently or partnering with others to establish a Council-Controlled Organisation (CCO).

Each option carries significant considerations, and councils need to ensure they are making informed choices that align with long-term sustainability, efficiency and regulatory compliance.

Making an Informed Decision

For councils still determining their approach, adopting a structured decision-making process is essential.

Investment Logic Mapping (ILM) and Strategic Outline Assessments (SOA) provide a robust decision-making framework to help councils evaluate their options effectively by:

• Clarifying the core challenges and expected benefits
• Qualitatively and quantitatively assessing viable service delivery options
• Supporting evidence-based decision-making
• Aligning investment strategies with national, regional and local priorities

By applying these strategic tools, councils can build confidence in their decision-making, foster stakeholder alignment and ensure their chosen approach delivers effective and sustainable water services that meet both community needs and regulatory obligations.

Proceeding Independently

For councils choosing to manage their water services independently, the focus must be on ensuring they have the necessary internal capacity and governance structures to deliver sustainable water services. This includes:

• Building internal capability – Strengthening asset management, operational expertise and regulatory compliance
• Financial sustainability – Ensuring long-term funding strategies and cost recovery models
• Meeting national water quality and infrastructure standards – Adhering to evolving regulatory requirements and best practices
• Community engagement – Effectively communicating service plans and investment priorities with residents and stakeholders

If councils decide to go it alone, they must have robust plans in place to manage operational efficiency, resilience and long-term infrastructure investment without external shared resources.

Establishing a Council-Controlled Organisation

For councils opting to collaborate, the next step is the formal establishment of a Council-Controlled Organisation. This is critical for ensuring:

• Effective governance and decision-making – Defining clear leadership roles and responsibilities within the partnership
• Financial and operational efficiency – Pooling resources to achieve economies of scale and streamlined service delivery
• Regulatory compliance and accountability – Aligning with national water reform standards and ensuring transparency
• Long-term sustainability – Developing a shared vision and investment strategy to future-proof water services

The formation of a CCO requires strategic planning using the Service Delivery Plan approach, stakeholder engagement and a clear framework for accountability and operational efficiency.

Developing Water Service Delivery Plans

Regardless of the approach chosen, the next crucial step in the Local Water Done Well process is the development of Water Service Delivery Plans. These plans must align with the broader objectives of sustainable, efficient and resilient water management while catering to local community needs.

This phase closely aligns with transformational change programme approaches. Water Service Delivery Plans will require a structured approach that integrates:

• Organisational structure – Defining the desired culture, roles, responsibilities and decision-making frameworks
• Processes – Establishing operational workflows and compliance procedures
• Technology – Implementing digital tools for asset management, monitoring and reporting
• Infrastructure – Ensuring investment in resilient and future-proofed water networks
• Knowledge and information management – Facilitating data-driven decision-making and regulatory reporting

How We Can Help

Navigating this transition requires strategic planning, programme management expertise and alignment with best practices.

We support councils in making informed decisions and implementing effective water service strategies by providing:

• Facilitation of ILM and Strategic Options Assessments to support decision-making
• Guidance on structuring and establishing operating models
• Programme management expertise to drive successful transformation

As councils move forward in this process, ensuring alignment with best practice programme management principles will be key to delivering sustainable, efficient and effective water service delivery plans.

If you are seeking guidance on navigating this transition, reach out to us today to find out more about our approach.

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