The committee will set expectations and provide oversight: appointing the board of directors, agreeing the Statement of Expectations and giving direction on long-term strategy for water services across the region.
Each council will have three representatives on the entity, which will be chaired by an independent, non-voting chairperson.
The representatives will be made up from one elected member, an appointed member (likely another elected member) and a mana whenua representative nominated through Ngā Tapuwae o Hau.
Ngā Tapuwae o Hau is the collective of iwi whose rohe sit within the Horowhenua, Palmerston North and Rangitīkei areas.
The board of five directors will operate independently of the councils and will serve up to three years, with a maximum of three terms.
They will meet at least 10 times a year to oversee major operational, financial and investment decisions.
The board will appoint a chief executive to manage the day-to-day running, lead staff and deliver the services and investment programme set by the board.
In a written statement, Rangitīkei District Council said the governance framework “will ensure water services continue to be locally overseen, locally managed and locally accountable“.
Horowhenua Mayor Bernie Walden said the framework would give communities confidence that councils will continue to guide water services on their behalf.
“Our residents want to know that their council still has a real say in how water services are run,” Walden said.
“This governance structure we’ve all agreed to keeps community views at the centre, while making sure we have the right tools to plan for the long term.”
Palmerston North Deputy Mayor Debi Marshall-Lobb said the governance model would strengthen democratic oversight and long-term planning.
“As councils, we carry the voice of our communities, and this structure keeps that voice firmly in the room,” she said.
“It also gives the new organisation the independent expertise it needs to manage a complex service well.”
The three councils agreed to not receive dividends from the organisation.
Rangitīkei Mayor Andy Watson said the need for sustained investment in water infrastructure and the rising cost of maintaining and upgrading ageing networks was a major focus in the reform.
“Keeping all funding within the water system supports this goal,” Watson said.
“It means every dollar collected for water services will be used directly for maintaining, operating and improving drinking water, wastewater and stormwater infrastructure across the region, rather than contributing to wider council budgets.
“This model guarantees that investment stays focused on the network and on delivering reliable services for our communities.”
As part of the Local Water Done Well legislation, Central Districts Water will also be overseen by two national regulators: one responsible for the quality of drinking water, and another that reviews what consumers are charged and checks the organisation is operating efficiently.
Recruitment for the governing board is expected to begin early next year.
Central Districts Water is expected to become operational in July 2027, with partner councils continuing to manage their own water services until then.
Once operational, each council will retain ownership as shareholders of Central Districts Water.
