Council proposes joint water company with Hamilton — here’s what it could mean for you.
Waikato District Council is preparing to make a major call on how it delivers drinking water, wastewater and stormwater services — and the outcome could reshape the future of water management across the district.
A proposal is on the table to create a new council-controlled organisation (CCO) in partnership with Hamilton City Council. The joint entity would take over responsibility for wastewater and potable water services across both areas and is set to be included in the council’s Long Term Plan (LTP), which opens for public consultation on 11 April.
“This isn’t Hamilton calling the shots,” clarified Waikato District Council Mayor Jacqui Church.
If the plan goes ahead, Waikato and Hamilton would form a brand-new water company, owned equally by both councils. Each would hold one vote — meaning no decisions could be made without mutual agreement.
“It’s a true 50/50 partnership. We each get one vote — and nothing progresses unless we agree.” Said Mayor Church.
The company would be governed by an independent board made up of water and governance experts, mana whenua representatives, and people with deep knowledge of environmental compliance, engineering and Te Tiriti o Waitangi obligations.
The initial “setup board” would get the entity off the ground, followed by a longer-term governance board to run operations and report back to both councils — and, by extension, to ratepayers.
Mayor Jacqui Church says the plan is a practical response to rising infrastructure costs, Government directives and the need for long-term thinking. Mayor Church acknowledged that the issue of water service delivery has been "years in the making", and said a proposal to enter into a shared CCO with Hamilton City Council will be part of the council’s Long Term Plan (LTP) consultation.
If communities support the move, the CCO could start taking shape from 1 July 2025.
Why now?
Mayor Church says it comes down to scale — and affordability. And the deadline set by the Government is looming.
“Waikato District has over a dozen water and wastewater plants spread across a massive area, from Port Waikato to Raglan, Huntly to Tuakau,” she said. “Maintaining that is incredibly complex and expensive. And it’s only getting more challenging as rules tighten and infrastructure ages.”
With the government requiring higher standards for wastewater discharge, drinking water treatment and stormwater systems, councils are scrambling to upgrade their networks. But funding is limited.
Three Waters rates are going up — here’s why
The push to join a Council-Controlled Organisation (CCO) comes amid growing pressure to improve water services — and that pressure has been building for years.
It all traces back to 2016, when a serious public health crisis hit Havelock North. The town’s drinking water was contaminated with campylobacter, making more than 5,000 people sick and resulting in four deaths. A government inquiry followed, uncovering deep flaws in how drinking water was managed across New Zealand.
By 2020, this had evolved into the Labour-led Government’s Three Waters Reform Programme — an ambitious plan to tackle long-standing issues like ageing infrastructure, decades of under-investment, rising public expectations and the growing impact of climate change.
Although the current Government has since paused and revised the reforms, the underlying problems remain. Councils still face tighter environmental standards, rising operational costs and the ongoing challenge of upgrading ageing infrastructure — all while trying to keep services reliable and affordable.
That’s the backdrop for this year’s proposed water rate increases. Targeted rates for connected properties in the Waikato District are set to rise by between 11 and 14 percent in the new financial year (with further substantial increases in the coming years) — a significant jump that reflects the escalating cost of maintaining and upgrading a sprawling network of assets.
Mayor Jacqui Church didn’t sugar-coat the reality: “Every time we renew a consent or respond to new national regulations, the standards are higher. That means our plants, pipes and systems have to be better — and that costs more.”
Waikato District spans a huge area — around 80 percent the size of Auckland’s Super City — and operates more than 16 separate water and wastewater plants. By comparison, most councils manage just one or two. That means Waikato District Council is trying to spread the load across a relatively small ratepayer base.
But the current funding model can only stretch so far. That’s where the proposed CCO comes in.
How a CCO could help ease the pressure
While Mayor Church is realistic about the fact that rates will still increase, she says entering a joint CCO could stop them from rising even faster.
“A CCO can borrow money over longer timeframes than councils can,” Church explained. “That spreads the cost of big upgrades over decades instead of hitting ratepayers all at once.”
It also means tapping into shared expertise, bulk purchasing power and long-term planning with Hamilton — a city facing many of the same water challenges.
“Standing alone, we know the cost increases would be worse,” she said. “By working together, we can achieve economies of scale and keep long-term water services more affordable.”
While inflation and ongoing compliance requirements mean costs will continue to increase, the council says this new approach will help smooth the impact on households and allow projects to move ahead more efficiently.
What happens next?
The proposal will be included in the council’s draft Long Term Plan, due for release on 11 April. The public will be invited to have their say — including on the CCO model and the alternative option: Waikato going solo and contracting a service provider.
“If people want to dive into the detail, all the infrastructure strategies and water asset reports are available online. But the consultation document will outline the key points — and we really want people to engage with it,” Church said.
Public Transport Costs Shift to Regional Council
Church also clarified that 2% of the general rates increase proposed by WDC will shift to Waikato Regional Council, which is set to take over management and funding of public transport across the region.
That means the general rate increase of 4.25% could’ve actually been 6.25% — but don’t celebrate just yet. That cost is simply shifting to your Waikato Regional Council rates instead.
"They’re consulting on that now, and it’s something Raglan residents should take a close look at," she said.
Traffic Lights on Raglan Bridge? Not Happening
Mayor Church was clear that previously discussed plans to install traffic lights on the one-way bridge in Raglan have been scrapped — a direct result of community feedback.
"It’s not in the consultation. We’ve heard the people loud and clear," she said, acknowledging that earlier documentation may have caused confusion. "We need to get better at dating and clarifying drafts, so the public understands what’s current."
Improving Communication and Trust
Mayor Church acknowledged frustrations from community board members around delays in receiving key documents. This followed an instance where Board Chair Dennis Amoore received a copy of a recent Council report on parks from a community member, after staff failed to include him in the original correspondence.
“We're not perfect as human beings. Nothing's perfect,” says Mayor Church but shares that they're working on a long-term culture shift in how the council engages — not just with councillors and staff, but also with our community boards and committees.
Church said it’s something being addressed through a broader "Trust and Confidence Strategy" — a council-wide initiative aimed at improving internal systems and communication.
Mayor Church Confirms Re-Election Bid
And yes — she’s running. Mayor Church announced she will stand again in this year’s local elections, saying she’s keen to continue leading into a second term “if that’s the will of the people.”