The Dunedin City Council is poised to deliver the Government a searing rebuke for its contentious Three Waters reforms, calling its legislation "not workable".
![Jules Radich.](https://www.odt.co.nz/sites/default/files/styles/odt_square_small/public/story/2025/02/mayor_jules_radich.jpg?itok=xEzYHbA1)
The submission, drafted under the names of Dunedin Mayor Jules Radich and infrastructure services committee chairman Cr Jim O’Malley, says the council is "yet again frustrated at being required to submit on legislation that is fundamentally flawed".
"The legislation in its entirety needs to be rethought and to be slowed down to ensure the principal goals of water reform are met long term," the draft states.
![Jim O’Malley.](https://www.odt.co.nz/sites/default/files/styles/odt_square_small/public/cr_jim_omalley_2.jpg?itok=UtrkgRIN)
Aspects of reform that have been controversial have included co-governance provisions with iwi and the setting up of large water entities to take over functions from councils.
Up for discussion now are the Water Services Legislation Bill and the Water Services Economic Efficiency and Consumer Protection Bill.
The main purpose of the legislation Bill is to empower the entities by setting out their functions, obligations and oversight arrangements.
The consumer Bill would set up regulation aimed at preventing the entities exploiting market power.
In its draft submission, the Dunedin City Council draws attention to the potential for water services entities to concentrate their funding in some regions and not others.
Neglected regions would have little recourse, "as the model substantially removes local voices".
"The council does not want to see these reforms creating a situation where the cost of putting pipes in the ground or upgrading treatment plants dictates where and how an urban area grows."
Key concerns identified in the draft include "an unworkable relationship" between councils and water entities, and apparently allowing the entities to avoid paying rates.
Complexities of a mixed-ownership stormwater model could result in "gross inefficiencies".
The Government has argued reform is needed to enable much-needed upgrades to infrastructure in a cost-effective manner.
The need for reform has been broadly accepted, but councils losing direct control of assets is one contentious point.
Tomorrow’s discussion will happen a few days after the National Party released its Three Waters policy.
A National government would "set and enforce strict water quality standards and require councils to invest in the ongoing maintenance and replacement of their vital water infrastructure while keeping control of the assets that their ratepayers have paid for", party leader Christopher Luxon said.