Tauranga City Council and the Western Bay of Plenty District Council have narrowly agreed to form a joint organisation to manage the region’s three waters services, following a marathon five-hour debate that laid bare long-standing tensions and a significant lack of trust between the neighbouring councils.
The two councils met consecutively on Thursday, ultimately voting to establish a multi-council controlled organisation (CCO) for drinking water, wastewater, and stormwater. The new entity is slated to go live on 1 July 2027, a decision made under pressure from the central government’s ongoing water reform legislation.
While Tauranga’s council voted decisively in favour of the move, the Western Bay of Plenty council was deeply divided, with the proposal passing by a narrow 6-4 margin. The debate in the Western Bay chamber was fraught with apprehension, with several councillors voicing strong reservations about partnering with Tauranga.
Distrust and doubt plague Western Bay vote
The lengthy session highlighted deep-seated concerns from Western Bay of Plenty councillors, who questioned the trustworthiness of their larger neighbour. Maketu-Te Puke Ward councillor Shane Beech did not mince words, describing Tauranga City Council (TCC) as 'dysfunctional'. 'Unfortunately, good faith and Tauranga City in the same sentence is unachievable,' he said. While acknowledging a CCO could be financially beneficial for ratepayers, he argued that partnering with TCC was not in their best interests.
His sentiments were echoed by others, including Katikati-Waihī Beach Ward councillor Allan Sole, who conceded the partnership was likely the best deal for the ratepayer but confessed, 'Do I feel comfy with this partner? No.' The feeling of a rushed process also permeated the discussion, with Maketu-Te Puke Ward councillor Laura Rae stating the decision-making had been hurried.
Concerns ranged from historic cross-boundary disputes to fears that Tauranga could leverage non-water issues against the smaller district in the future. Some felt that the off-ramps initially promised in the partnership negotiations had disappeared, leaving them locked into an agreement with a partner they did not trust. An amendment to delay the organisation’s start date by a year to 2028 was defeated only by the casting vote of Western Bay of Plenty Mayor James Denyer after the initial vote was tied.
We’ve given you 50% of the voting rights on this organisation, so there is nothing we can do without you guys also agreeing. If we wanted to pull it over you or ram it through, we would have taken out 80% of the vote and we would have made all the decisions.
Tauranga pushes for affordability and progress
In contrast, the mood in the Tauranga City Council debate was one of determined progress. Tauranga Mayor Mahé Drysdale made it clear that his council would proceed with forming a water organisation with or without its neighbour. He addressed the Western Bay’s concerns by challenging the narrative of an unbalanced partnership.
He referred to the two councils as big brother and little brother , a comment some Western Bay councillors found insulting. Drysdale defended his analogy, stating it was a reflection of the relative sizes of the councils and pointed out that Tauranga had offered a significant concession by granting 50% voting rights to the Western Bay. This structure, he argued, ensures that Tauranga cannot make unilateral decisions.
Tauranga councillors largely focused on the long-term benefits for residents. Pāpāmoa Ward councillor Steve Morris stressed the affordability aspect, stating, 'We can’t jack up the water rates every time and keep hurting our people. This is the way to deliver value for our people.' Only one Tauranga councillor, Glen Crowther of the Matua-Ōtūmoetai Ward, voted against the proposal due to his specific opposition to including stormwater in the CCO's mandate.
Future of water services and iwi partnership
The decision comes as a local response to the government’s nationwide water services reform programme, which aims to improve the management of water infrastructure across New Zealand. For the Bay of Plenty, one of the country’s fastest-growing regions, the need for robust and resilient water services is particularly acute. The new CCO is seen as a vehicle to secure the necessary investment to upgrade and maintain infrastructure for a swelling population. Despite the tensions, leaders on both sides acknowledged the necessity of the move. Western Bay Mayor James Denyer, who described the collaborative planning process as positive, insisted that the outcomes for his ratepayers would be 'demonstrably worse' if they chose to go it alone. 'Establishing a joint water organisation gives us the best opportunity to deliver safe, resilient and affordable water services,' he said. This work is crucial for homeowners, following the ultimate guide to buying your first home in New Zealand.
A crucial element of the agreement is the commitment to the involvement of tangata whenua. Waka Kai Uru Māori Ward councillor Darlene Dinsdale reminded the meeting that iwi had encouraged the councils to work together in kotahitanga (unity). Both councils formally agreed that current engagement with Māori must be retained or enhanced, and an amendment was adopted to specifically recognise cross-boundary iwi relationships in all future processes. This integration of Māori partnership is vital in a region deeply steeped in the history of iwi such as Te Arawa, who first settled here in the 13th century.
While some councillors, like Kaimai Ward's Graeme Elvin, admitted parts of Tauranga's conduct had been 'a bit unpalatable', he urged his colleagues to accept the risks and 'get on board'. The final agreement paves the way for what Western Bay Deputy Mayor Margaret Murray-Benge called the largest local government reform since 1989. As other councils like Thames-Coromandel District Council watch on, the success of this reluctant partnership will be critical for the future of the entire region. Other cities are also looking to new governance and technological models to manage infrastructure, such as Toronto's move to roll out AI-powered traffic lights to combat gridlock, demonstrating a global trend towards innovative solutions for urban growth.
Te Papa Ward councillor Rod Taylor said he based his decision on a vision for the future beyond just the next few years, a sentiment that ultimately carried the day. The focus now shifts to the immense task of building a single water entity from two distinct councils, a process that will depend on mending the very trust that appeared so frayed during the debate.
