Northland makes strong headway in water CCO establishment

Northland’s councils are making strong progress towards establishing the region’s new water services Council Controlled Organisation (CCO).

As councils advance their programmes under the Local Water Done Well legislation, Northland is now tracking to bring forward its original timeline for incorporation from 1 July 2026 to 1 May 2026.

A cross-council group, made up of the mayors and two councillors from each district, has been guiding the establishment of the CCO and considering the opportunities and impacts this may have for each district.

Elected Member Steering Group Chair and Mayor of Whangārei, Ken Couper, said: “The progress we’re making reflects something powerful - Northland working together for Northland.

“By uniting our efforts, we’re creating a regionwide approach that will strengthen our services, support our communities and set us up for the future.

“Elected members on the steering group have agreed that forming the CCO is the best way forward for Northland, however the ultimate decisions will remain with each council.”

Next steps

As the programme moves toward incorporation, key upcoming milestones include:

• An ‘in principle’ decision to recommit to forming the CCO, which will be presented to each council for a decision within the next two weeks. At these meetings, the councils will consider the draft legal documents to establish the company and commit in principle to its incorporation.
• A second commitment point is expected at the April council meetings when each council will consider authorising execution of the agreements, enabling the company to be incorporated in May.
• As part of the legal documents, the councils will also consider a Transition Support Agreement. This sets out how the councils and the CCO will co-ordinate during the period while the company is being established.

Establishment and transition

To ensure a running start, should councils agree to set up the CCO, work is underway on an Establishment Plan that will provide a roadmap for standing up the CCO so it can take over operation of the water services from 1 July 2027.

Once incorporated, councils will confirm their representation on the Shareholders’ Representative Group.

Statutory and regulatory obligations for water services delivery

Councils are legally required to give effect to the Water Service Delivery Plans (WSDP) that have been approved by the Secretary for Local Government under the Local Government (Water Services Preliminary Arrangements) Act 2024.

If a council chooses not to form a water company as per its WSDP, or otherwise deviates materially from its WSDP, then the DIA can require reconsideration of delivery arrangements or advise the Minister of Local Government on intervention options.

Additionally, water services must meet financial sustainability requirements administered by the Commerce Commission and must comply with water services standards administered by the Water Services Authority – Taumata Arowai.