Gisborne’s in-house water plan gets Government approval

Gisborne’s water services plan has been approved by the Government. Photo / Zita Campbell

Gisborne’s water services plan has been approved by the Government, a move Mayor Rehette Stoltz says is “a huge step forward for Tairāwhiti”.

The district council’s plan, adopted in August, details the creation of a ring-fenced in-house business unit from July 1, 2027, to deliver the council’s drinking water, wastewater and stormwater services.

Its approval comes after the Department of Internal Affairs raised concerns earlier this year about the “financial sustainability” of the council implementing a standalone water plan.

Public consultation, held from April 1 to May 1, showed that 90% of 204 submissions supported establishing a modified in-house delivery model, while 10% supported establishing a council-controlled organisation (CCO).

“Our community made it clear they wanted local control and accountability for our water services. The acceptance of our plan means we can now move forward with confidence to deliver that – by the region, for the region,” Stoltz said in a council statement.

Council chief executive Nedine Thatcher Swann, in the statement, said the review of Gisborne’s water plan was “rigorous and comprehensive”.

“The fact that our plan was accepted without amendment is a credit to the extensive work and collaboration that went into its preparation.”

She said the assessment involved senior representatives from the Commerce Commission, Local Government Funding Agency, National Infrastructure Funding and Financing Limited, and the new Water Services Authority.

According to the statement, the council is now focused on establishing the internal business unit by July 2027, with financial sustainability targets to be achieved by June 2028.

“[The plan] provides for $214 million in investment over the decade, renewal of nearly 50 kilometres of underground mains and the creation of a dedicated Water Services Committee to support ongoing partnership with mana whenua.”

The proposal is based on the council’s current investment programme and baseline assumptions.

It will be superseded in time by the Water Services Strategy and the 2027–2037 Long Term Plan, the plan states.

Gisborne’s urban population on the reticulated water system is forecast to grow from 36,232 in 2025 to 40,483 by 2053.

“This growth, concentrated within the serviced area, will require a step change in infrastructure capacity, renewal of ageing assets and compliance with increasingly stringent environmental and drinking water standards.”

According to the plan, financial modelling is based on planned investment over at least 10 consecutive years, and maintaining the current Level of Service commitments.

Additionally, the modelling expects that the council’s in-house services “will transition customers charged based on capital value to a combination of volumetric and/or fixed charges within a five-year period commencing 1 July 2027″.

“A review of all pricing, including a price harmonisation pathway, will begin from the same date. Changes will be introduced through a phased approach.”

The plan states that although the network is “generally in sound condition”, renewal backlogs must be addressed, especially in water and wastewater.

“Cyclone Gabrielle exposed critical vulnerabilities across the district, with several areas requiring urgent investment to restore previous service levels.”

Additionally, water storage capacity also remains a key risk during emergency events, the plan states.

Cyclone Gabrielle broke Gisborne’s main water supply pipe in 10 places, creating a water supply crisis for nearly two months.