Waikato’s two largest growth councils – Hamilton City and Waikato District – are on the way to forming a joint water company by July next year.

On Thursday (29 May) Hamilton city councillors will consider a series of staff recommendations which strongly recommend councillors push go on forming a Council-Controlled Organisation (CCO).

The CCO, with both councils as equal decision-makers, would build and manage wastewater and drinking water infrastructure and provide water services to the city and across the Waikato district. Currently water services in Hamilton are Council-managed.

Stormwater services will be provided to councils under a contract to the CCO.

Waikato District Council will consider a similar set of recommendations on Wednesday (28 May). Both councils have consulted their communities on the proposal, with around 75 per cent of submissions in support of forming the company.

If approved the waters company will be incorporated on 1 July 2025, with full operational responsibilities kicking in from July 2026. Over the next 12 months both councils will transition water services to the new entity.

It will mean the eventual transfer of around 270 people to the CCO, largely from existing council water services teams. Some staff in key positions will be seconded for a fixed term to establish the company.

Hamilton City Council Chief Executive Lance Vervoort was confident Hamilton’s elected members would support the recommendations on Thursday.

“Councillors have been tenacious in dealing with a very complex issue, under challenging timeframes. This is a critical decision for the city, and the wider region. It will fundamentally change the way we fund and build water infrastructure and deliver water services. Importantly, it will unshackle both councils to tackle the massive growth we are both dealing with,” he said.

He said many staff will be relieved to see an “end point to uncertainty.”

“There’s been too much churn and indecision in the waters space for far too long nationally, and that puts huge pressure on people who simply want to do a good job. We’re on the final straight now and within sight of beginning to realise the benefits a much larger waters entity can and will deliver.”

If the decision to proceed is made, work over the next 12 months’ will be overseen by a three-person establishment board in place from early-July. A chief executive is unlikely to be recruited until late-2025.

On Thursday, Council will be asked to approve the transfer of relevant staff, assets, liabilities, consents, contracts and land to the CCO, subject to a transfer agreement. This includes the identification, valuation and transfer of all water assets and water-related debt for both councils. Councillors will also be asked to approve the establishment of a contract for stormwater management with the CCO.

The estimated establishment cost of the new entity is $7.35 million, with a further $3.95 million in operating costs budgeted for the 2025/26 financial year. For simplicity, it is proposed costs be debt-funded by Hamilton City Council on behalf of both councils and fully recovered from the CCO in 2026. These costs will form part of Hamilton City Council’s Annual Plan budget, to be formally approved at the end of June.

At the same June meeting, councillors will be asked to adopt a Shareholders’ Agreement and Company Constitution. Approval will also be sought for a joint Water Services Delivery Plan.

Each council will continue to collect development contributions separately for future water infrastructure until all water-related assets and responsibilities are legally transferred to the new entity on 30 June 2026.

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