Hamilton is one step closer to forming a joint water company with Waikato District to deliver water services from mid-2026.

Hamilton councillors today unanimously agreed with a staff recommendation that a council-controlled organisation (CCO) be formed with its neighbouring council to jointly deliver drinking water and wastewater services. Stormwater would continue to be managed by each council, under contract to the CCO.

Waikato District Council will consider the same recommendation tomorrow and, if agreed, both councils will seek community feedback next year.

Hamilton Mayor Paula Southgate said today’s decision was based on a fundamental truth, widely acknowledged by all Elected Members.

“We simply cannot deliver the infrastructure our city needs by going it alone. We cannot meet our growth obligations and right now, we don’t have a mechanism that allows us to spread the cost of borrowing for large water projects. This is a fairer way forward for ratepayers that over time, will drive efficiencies that can only come from working at scale.”

She hoped a two-council CCO would be a first step towards a larger, Waikato-wide model.

“Longer term, we think working together is the optimal outcome for the city, for the region and for the Waikato River. But right now, we can only go as fast as other councils are prepared to go and we respect that.”

“Both Hamilton and Waikato have significant growth challenges. We need to get on as partners and build infrastructure, in an affordable way, that will enable more housing and support economic activity,” she said.

“Our door is wide open to working with other councils and will stay open. Staff have been clearly directed to ensure any future planning can align with a potential regional model, and we will continue to be part of those very important conversations. However, it’s one step at a time and today is a big step.”

Today’s decision follows an analysis of two other options – forming an in-house business unit or a Hamilton-only CCO. The total amount of rates paid would be the same under all options, but a CCO would allow the city to better manage growth and make it easier for both councils to work across boundaries on vital water infrastructure.

All councils have been directed by government to develop a water services plan by September next year to prove they have enough money to pay for water services and can invest what is needed. Councils have also been told to consider joining with neighbours to create scale, drive efficiencies and get a better deal for ratepayers.

Council will consult the community on a CCO, and at least one other option, early in 2025 and make a final decision by June next year.

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