Council enters Transfer Agreement with Tiaki Wai – the final step in establishing new water organisation

Greater Wellington has entered into a Transfer Agreement with Tiaki Wai, marking the final legal step toward establishing the multi-council-owned water services organisation.

From 1 July, all water services responsibilities currently held by Greater Wellington will move to Tiaki Wai. This includes infrastructure and assets such as water treatment plants, reservoirs, pump stations, pipelines, and equipment. The agreement also includes the transfer of all associated liabilities, smaller land interests, consents, contracts, and debt. 
Greater Wellington Deputy Chair Ros Connelly says the decision both gives effect to past council decisions to establish Tiaki Wai and highlights the flaws within the national reform model.

“This decision is the final legal step to bring Tiaki Wai into operation to ensure the continued delivery of reliable water services across the metropolitan area, while enabling long-term investment and resilience,” Cr Connelly says.

“We absolutely stand by the need for water reform, however there are significant risks in this model. I want to acknowledge that as we worked through the process, the full implications – including balance sheet separation, guarantees, and uncalled capital – is different from what was originally understood by councillors and the basis of public consultation.”

Despite these concerns, Cr Connelly says Greater Wellington has supported the new entity in the spirit of regional collaboration.

“We support the establishment of Tiaki Wai because it reflects what territorial authorities signalled as their preferred approach, and we have worked together to deliver a practical outcome for the people of Wellington, Porirua, and the Hutt Valley.

“However, practical does not mean preferable – there were opportunities for the Government to strengthen the model through a Crown guarantee or director indemnity, which could have provided a more stable foundation for the new entity from day one.”

Along with the four city councils, Greater Wellington agreed to collectively provide equity of up to $400 million if there is an unexpected, significant adverse event, such as a major infrastructure failure that is beyond the financial ability for Tiaki Wai to manage. This commitment, known as an Uncalled Capital Facility, ensures Tiaki Wai has adequate access to funding if these financial “trigger events” occur.

Cr Connelly says she hopes partnering councils’ support continues beyond financial agreements. 

“It is our hope that there is continued commitment from the shareholding councils beyond the financial backing of Tiaki Wai, so that our region’s waters are heathier, less polluted, and resilient to the impacts of climate change,” adds Cr Connelly.

Greater Wellington will retain ownership of regional parks, water collection areas, and river corridor land, reflecting commitments made during public consultation to ensure continued protection of the environment, biodiversity, and public access to natural spaces.

For more information, see the order paper and unconfirmed public minutes of the Council meeting 19 May.