Council is set to formally begin work on its Water Services Delivery Plan under the Government’s Local Water Done Well legislation.

Mayor Neil Brown said Council is looking at what will hold Mid Canterbury in the strongest position.

“All of the water delivery options we’re looking at have to be financially sustainable and will be regulated by the Commerce Commission.

“The new way of delivering water will have to be financially ring-fenced which means that all water costs and income must be kept separate from other council services.

“Council is leaning towards local Mid Canterbury solutions”, he said.

Three local options include an in-house model, a single-Council CCO model or a single-Council CCO with an existing local Board-governed entity.

In-house is largely how Council operates now but but would have to meet the new regulatory regime in the future.

A single-Council controlled organisation would see a new organisation set up under the control of Council. Water CCO’s can borrow up to 500% of their operating revenue from the Local Government Funding Agency (LGFA).

Finally, a bespoke option for Mid Canterbury is being explored, which could involve working with local utiliities provider, EA Networks.

Community consultation on shortlisted options is earmarked for early next year.

Water Services Delivery Plans are due to be submitted to the Department of Internal Affairs by August 2025 and will be subject to the approval of the Minister for Local Government.