The working group says it recognised that rural drinking water schemes often provide water for farming as well as for people to drink. Photo / Michael Cunningham
The Government's Three Waters Reform progresses as the Rural Supplies Technical Working Group provided feedback to the Department of Internal Affairs (DIA) last week.
The group made 30 recommendations, including that privately-owned rural water supplies should keep managing themselves instead of handing over to the Three Waters entities.
The rural working group was established to make sure rural needs are recognised in the reform.
Waikato members of the rural working group included Ruapehu District Council chief executive Clive Manley and Ōtorohanga District Council Mayor Max Baxter.
Working Group chairman and Clutha Mayor Bryan Cadogan says the group listened to the concerns of rural communities.
"We recognise that rural drinking water schemes often provide water for farming as well as for people to drink. We also recognise that rural people have just as much right to safe water as urban people, but it's not one size fits all."
There are two types of rural drinking water schemes: privately owned and council-owned schemes. Privately owned rural suppliers number in the tens of thousands, while there are roughly 100 council-owned rural schemes.
Cadogan says the working group thinks that council-owned rural drinking water schemes should generally transfer to the new water service entities, "so that on day one of the new system their water services will continue as normal".
However, he says some council-owned rural supplies which are critical to farming needs should be given the option to revert to ownership by their users.
"This would apply to schemes that are critical to farming and whose users have the capability and resources to operate them without support from councils or water services entities."
In some cases, ownership of schemes is unclear or undocumented, for those schemes, the working group recommended a case-by-case negotiation.
The Three Waters Reform does not apply to or impact private rural supplies, however, suppliers of those will be required to abide by stronger standards set by the new water regulator Taumata Arowai by 2028.
Cadogan says the working group heard concerns from the rural community about complying with the new regulatory regime.
"We recommend that Taumata Arowai provide practical and cost-effective ways for schemes to comply, that recognises their uniqueness and closely involves rural stakeholders in designing and implementing regulatory requirements."
Outgoing Waikato District Mayor and third-generation farmer Allan Sanson says while he agrees that the privately-owned drinking water schemes should stay in private ownership, he thinks the regulatory requirements for private suppliers create "unforseen consequences".
"People start understanding the responsibility. There are people who are currently sharing their water with their neighbours in good faith ... I don't supply water, but if I was, I'm not gonna share water with someone if that means I'm liable."
He says this might result in a concern for people who are currently receiving their water from neighbours.
National Party spokesperson for Agriculture Barbara Kuriger says she "totally" agrees with Sanson.
"People are getting scared of being liable ... A lot of people will have to find another way of sourcing their water."
She says although the working group recommended exemptions, the Three Waters Reform was still not her preferred option.
"[The working group] looked at exemptions, they have given [their feedback] some thought, but we don't agree that the council-owned schemes should transfer to the entities.
"We are not a fan of the entities and fear that the rural schemes will be forgotten.
"Every time you transfer assets, you take them away from people and create more bureaucracy. There are better solutions than centralising the services."
She says there were a lot of things that can be done locally, like contracting the services or bringing in water filtration systems.
"Keeping things local is better ... Taumata Arowai should come up with some standards, so rural communities can get behind it."
Federated Farmers president Andrew Hoggard says many of the findings raised by the group look sound.
"The report appears to be a tiny sliver of common sense in amongst a pile of water policy decision-making we are struggling to explain to our members."
Federated Farmers say they continue to analyse and make submissions on the vast array of other regulatory changes proposed in the water management area.
Local Government New Zealand (LGNZ) president Stuart Crosby says the working group's recommendations were "a real win" for rural communities.
"In these communities, water is used for stock and irrigation as well as household drinking water, creating unique issues for rural users. For example, lack of water supply in summer can quickly become an animal welfare issue."
The Rural Technical Supplies Working Group is one of three working groups that was established by the DIA in response to the Three Waters Reform.
The other two working groups are the Planning Technical Working Group and the Working group on Representation, Governance and Accountability.
The Planning Technical Working Group will provide policy development support related to the role of the entities and the resource management system.
The latter already made 47 recommendations in March which helped shape the Water Services Entities Bill that has just been introduced to Parliament.