Tiaki Wai: What Property Owners Need to Know About the New Water Services Regime
From 1 July 2026, the delivery and funding of water services across Wellington City, Lower Hutt, Upper Hutt and Porirua changed significantly with the establishment of Tiaki Wai, the new council-owned water services organisation. Tiaki Wai has assumed responsibility for drinking water, wastewater and stormwater infrastructure throughout the region as part of the Government’s Local Water Done Well reforms.
For property owners, initially the most visible change is how water services are charged. Previously, water services charges were incorporated into council rates invoices. Those charges have now been removed from council rates and are billed separately by Tiaki Wai. Property owners will therefore receive two separate invoices: one from their local council for rates, and another from Tiaki Wai for water services.
Tiaki Wai has stated that initially it will be largely maintaining the charging methods previously used by the respective councils. So, existing metered properties will continue to receive usage-based charges where applicable and non-metered properties (the vast majority) will be charged under the relevant rating framework. Over time, the organisation intends to expand water metering – i.e. install water usage meters – across the region, which may lead to a greater emphasis on usage-based charging in the future.
Apportionment on Property Sales
The introduction of separate Tiaki Wai invoices will have an effect on property transactions in the region. As noted above, historically, water charges formed part of local council rates adjustments completed on settlement. Now, conveyancing practitioners will need to ensure that any outstanding or prepaid Tiaki Wai charges are separately apportioned between vendor and purchaser as at the settlement date.
This means that for affected properties, Collins and May Law will ensure settlement statements include an adjustment for the current Tiaki Wai billing period in much the same way as rates are apportioned. Any unpaid Tiaki Wai invoices should be addressed before settlement, and practitioners should obtain up-to-date billing information where possible. Particular care will be required for metered properties where usage charges accrue during the billing cycle and may not yet have been invoiced at settlement.
Property owners who are buying or selling should seek legal advice to ensure that Tiaki Wai charges are appropriately accounted for and that no unexpected liabilities arise following settlement.
