Hawke’s Bay Regional councillors have given their support to progress with a process that would transfer sole management of the Napier urban waterway assets to Napier City Council (NCC) while continued work is done around the ultimate transfer of ownership of these assets.

The decision follows a multi-year review process initiated in 2021, aimed at improving the delivery, governance, and management of Napier’s stormwater system. The proposed transfer is also designed to support NCC’s response to Government’s Local Water Done Well policy.

The in-principle agreement will enable staff from both councils to continue developing a detailed business case and begin preparing for formal community consultation, scheduled to occur through the 2027 Long Term Plan process.

The current stormwater infrastructure in Napier includes open waterways, pump stations, detention dams, floodgates, and culverts. These assets are jointly owned and maintained by Hawke’s Bay Regional Council (HBRC) and NCC — a legacy arrangement stemming from the 1989 local government reforms. Over time, the system has grown increasingly complex, with overlapping responsibilities, unclear ownership boundaries, and differing investment and maintenance approaches.

Chris Dolley, Regional Council’s Group Manager Asset Management says: “This is about modernising an outdated setup. “It’s clarifying who does what and will make operations at both councils more efficient.”

Russell Bond, Executive Director Infrastructure Services for Napier City Council said single ownership based on geography benefitted both councils.

“We can both plan and invest more efficiently to protect Napier communities from flood risks and deliver better stormwater services,” he said.

A detailed review — bolstered by lessons learned from the 2020 Napier floods — identified a need for clear accountability, consistent levels of service, and improved decision-making. The preferred option, supported by staff from both councils, proposes transferring the assets to NCC based on their geographic location within the city.

The proposal would see Napier City Council take on the management of HBRC’s urban waterway assets from 1 July 2026, an extension of an existing contract arrangement, with full ownership to follow on 1 July 2027. This change is intended to align with potential timelines for establishing a Regional Water Organisation under national reforms.

The assets involved have an estimated book value of $10 million — about four percent of HBRC’s infrastructure asset base — and include some of the most critical components of Napier’s urban stormwater drainage system. The handover would not result in any net financial impact on ratepayers. HBRC will continue to collect targeted stormwater rates and pass these through to NCC until the transfer is complete.

While the operational shift is not considered significant under HBRC’s policy, the ownership transfer is. As a result, both councils will consult with the community before making any final decision.

Both councils have signalled the importance of community consultation in the decision-making process. HBRC has recommended this take place as part of the 2027 Long Term Plan, alongside Napier City Council’s own engagement.

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