Water supply and sanitation in New Zealand

New Zealand: Water and sanitation
Data
Water coverage (broad definition)	100%
Sanitation coverage (broad definition)	100%
Continuity of supply (%)	Mostly continuous
Average residential water use (l/p/d)	281 (2020)[1]
Average domestic water and sewer bill	NZD$960/year (2020)[1]
Share of household metering	50%
Annual investment in WSS	NZD$1.8 billion CAPEX (2020/21)[1]
Share of self-financing by utilities	High
Share of tax-financing	Nil
Share of external financing	Nil
Institutions
Decentralisation to municipalities	In all regions
Water and sanitation regulator	Taumata Arowai
Responsibility for policy setting	Shared between Ministry of Health and Department of Internal Affairs
Sector law	Health Act 1956 Water Services Act 2021

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.^[2]

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.^[3] 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.^[4]

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.^[2] 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.^[5][6] 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."^[7][8]

The privately owned water supply schemes that service many small rural areas are not included in the reform programme.^{[citation needed]}