Waikato and Hamilton councils to form joint water company

This week’s decision to form the Waikato’s first publicly-owned water company has been dubbed “historic” by mayors and elected councillors across Hamilton and the Waikato district.

Hamilton mayor Paula Southgate and Waikato District mayor Jacqui Church say unanimous decisions this week from both councils to form a council-controlled organisation (CCO) to build and manage water infrastructure are “legacy decisions that will impact generations.”

“This is a fundamental change to the responsibilities of local government.”

Hamilton City Councillors agreed on Thursday to form a joint water company with their neighbours to manage 90,700 water connections (including non-residential connections) and invest around $3.3 billion in water infrastructure over the next decade. Their decision follows the unanimous decision by the Waikato District Council earlier in the week to join with Hamilton in forming the CCO.

It means that a new water company, with independent directors, will be incorporated by July this year, with full operational responsibilities taking effect from July 2026. Over the next 12 months, both councils will transition water services and around 270 staff to the new entity.

Southgate said she was very pleased” but not surprised to see today’s decision go over the line.

“Councillors have looked at this from every possible angle in response to a very, very clear government direction that something must change. This decision will allow us to unlock the benefits of a real partnership, including funding opportunities to tackle major projects like the Southern Wastewater Treatment Plant and other critical infrastructure for our communities need,” she said.

Southgate said it was the biggest opportunity local government has had in decades to do things differently and in a way that delivers much more effectively for ratepayers.

“We’ve taken the opportunity and together both councils will hold the CCO to account to ensure it delivers what we need it to. It is a huge responsibility, and shareholders will be watching closely.”

Church, who was at the Hamilton City Council meeting to watch the vote, said the decision to form a water company had been a long time coming.

“Too long in my book.”

“We all know we need fundamental change to unlock the region’s potential, and sorting out waters is critical to that,” she said.

“We’re the fastest growing district council in the region, in partnership with New Zealand’s fastest growing city, and we have a responsibility to work together for the good of everyone who lives here now, and in the future.”

“Without waters, there is no growth. A CCO will provide a far better platform for us to respond to the development we know is coming, to the government’s Fast Track opportunities and to progress critical infrastructure that frankly, ratepayers cannot fund on their own. This is a historic day, a great day.”

The decision will see the CCO, not councils, providing water services to the city and across the Waikato district. Stormwater services will be provided to the councils under a contract with the CCO.

Over the next 12 months, work to get the company operational will be overseen by a three-person Establishment Board to be in place from July 2025. They will guide the transfer of staff, assets, liabilities, consents, contracts and land to the CCO, subject to a transfer agreement. This includes the identification, valuation and transfer of all water assets and water-related debt for both councils.

A chief executive is unlikely to be recruited until late 2025.

In June, both councils will be asked to adopt a formal Shareholders’ Agreement, company constitution and water services delivery plan outlining how services will be provided in future.