Establishing Tiaki Wai: funding and costs

Why did the councils establish a new water organisation?

In December 2023, the Government announced a new direction for water services (drinking water, wastewater and stormwater services) called Local Water Done Well. The five councils in the Wellington metropolitan area - Hutt City, Upper Hutt City, Porirua City, Wellington City and Greater Wellington - collaborated with their two mana whenua partners, Ngāti Toa Rangatira and Taranaki Whānui ki Te Upoko o Te Ika, to respond to the reform.

On 31 October 2024, this collective of councils and mana whenua partners agreed to develop a joint Water Services Delivery Plan (WSDP) to establish a jointly owned water services organisation. The delivery of this plan resulted in the establishment of Tiaki Wai as the new water services provider from 1 July 2026.

How was the establishment of Tiaki Wai funded and resourced?

The establishment of Tiaki Wai required the combined effort of councils, mana whenua partners, Wellington Water, and an establishment team with governance from Council Chief Executives, the Elected Members’ Partners’ Committee, and the Wellington Water and Tiaki Wai Boards. There were around 100 people across these organisations directly contributing to the establishment.

All funding for the establishment of Tiaki Wai was provided by the councils. The budgets for the establishment of Tiaki Wai were approved by the council Chief Executives’ Group. There was a cost sharing agreement in place between the councils to formalise the budget, cost allocation, invoicing and payment requirements.

Porirua City Council (PCC) provided procurement and financial services on behalf of all the councils to manage procurement processes, contracts and expenditure. All expenditure was approved under financial and procurement delegations held by Porirua City staff in line with PCC policy.

The councils stood up a Tiaki Wai establishment programme team, who worked closely with key staff from each council and mana whenua. Porirua City Council staff supported the establishment team with procurement and financial services. Wellington Water staff were also involved in a wide range of transition activities to prepare for the transfer of assets, establishment of customer services, and Wellington Water’s amalgamation into Tiaki Wai.

How much did establishment cost?

The costs for the 2023/24 and 2024/25 financial years totalled $3.210m and were shared between the councils.

The establishment costs for the 2025/26 financial year totalled $ 15,954,825. The 2025/26 costs incurred by councils were included in the debt balances transferred to Tiaki Wai on 1 July 2026.

The following table provides a breakdown of the 2025/26 expenditure by workstream.

Description of workstream activity summaries (all of which include staffing costs):

1. Programme and project management – for the programme and range of sub-projects and activities.
2. Strategy and policy – development of the Water Services Strategy, Significance and Engagement Policy and other policies.
3. Legal, transfer service level agreements - foundation documents, transfer agreements and schedules, debt transfer documentation, uncalled capital financial support arrangements, South Wairarapa District Council share buyback and amalgamation, master services agreement, statements of work, and guidance on transacting the transfers for land, consents and designations.
4. Recruitment, people and workforce – organisational design, recruitment of Board, CE and senior leadership roles, change and engagement with staff.
5. Customer, partnerships and communications – public engagement on the Water Services Strategy, organisation identity development and rollout, customer service design, customer and stakeholder communications.
6. Finance and funding - financial budgets for the Water Services Strategy, pricing policy for water charges, treasury and insurance advice.
7. Information systems and support – advice and support including IT systems.
8. Operations, compliance and continuity - detailed preparation for operational readiness.
9. Leadership, governance, insurance – Board costs including Directors and Officers insurance, legal advice and CE costs.
10. Programme general, WWL support, accommodation and logistics – advice and support for completion of Water Service Delivery Plan, office lease and equipment, IT and website support, advice and support from Wellington Water including for accounting and tax, IT services, customer channels and website.