Three Waters



We're continuing to work closely with councils as we transition to the new Water Services Entities. 

Three Waters reform will enable councils to focus on the well-being and aspirations of their communities rather than funding the growing cost of three waters infrastructure and services.

The Government has developed, in close partnership with Local Government New Zealand, a package of $2.5 billion to support the sector through the transition to the new water services delivery system, and to position the sector for the future. This package will ensure that local authorities are supported through the transition process, the financial impacts of reform are managed and importantly, all councils and communities will transition to the new system for delivering three waters services in a better position than where they are now.

The funding includes:

  • $2 billion Better Off Funding: to be used to invest in infrastructure or services that support communities to transition to a sustainable and low-emissions economy, enable housing development and growth, and support local place-making and improvements in community wellbeing.
  • $500 million No Worse Off funding: to acknowledge the costs and financial impacts on local authorities as a direct result of the reforms.
  • $44 million Council Transition Support Funding: to recognise the costs councils are incurring on transition activities, such as demands on staff time.
  • $523 million Three Waters Stimulus funding: to invest in three waters infrastructure.

Additional transition funding to support councils’ participation in Local Transition Teams is expected in early 2023.

We’ve been engaging with councils for some time now and have established channels for communication. Councils are critical to a successful transition, and we’ll continue to work together closely as we transition to the new Water Services Entities.

Invitations from council officials to engage can be emailed to