Council-controlled organisation (CCO) jointly owned by the Clutha, Central Otago, Gore and Waitaki district councils. Water, wastewater and stormwater assets would be transferred to the CCO but remain in public ownership through the councils’ shareholding. Shareholding would be allocated evenly - each council owning the same number. Legislation prevents assets from being privatised.

The organisation would have an independent board responsible for overseeing operations, ensuring efficiency, and meeting service standards. Councils would jointly appoint board members and set clear expectations for performance and accountability.

Councils would retain strategic oversight by setting expectations, priorities and strategic directions for the organisation that will guide and inform decision making. The organisation would be required to perform and report against those expectations. Councils could also review and adjust the organisation’s strategic direction if needed.

Financially separate from councils. Water revenues will pay for borrowing costs and all investment requirements. Consumers will pay water charges to the water services organisation for the services they use.

Separate from Councils. The water services delivery organisation would borrow from banks or the Local Government Funding Agency under its own terms, and its debt won’t be counted against each council. To access this funding, the Council would have to provide a guarantee or issue uncalled capital to the water services delivery organisation.

The new water services organisation would be carefully monitored to ensure it’s working effectively and responsibly.

While the water services organisation would manage the day-to-day operations, local councils would still play an important role by setting strategic direction and performance expectations. This means they’ll define success, even if they’re not handling the nuts and bolts of water services delivery.

The new system aims to balance local input with professional management and rigorous accountability by creating clear reporting requirements and independent oversight.

Key monitoring mechanisms include:

Governance: The CCO would operate under a constitution and shareholding agreement, which define its purpose, structure, and decision-making processes.

Strategic direction: Councils would issue a Statement of Expectations (SOE) to guide outcomes and priorities, and the CCO responds with a Water Services Strategy, prepared every three years and supported by an annual budget.

Regular reporting: The CCO must report to its shareholding councils quarterly, provide an audited annual report, and act consistently with statutory objectives. These measures ensure councils maintain oversight while enabling the CCO to deliver efficient and financially sustainable water services.