Local Government Minister Nanaia Mahuta has pledged to offer the Three Waters sector some certainty, acknowledging staff needed clarity and job security.
"It is crucial that we provide certainty to staff as early as possible. It is our current workforce who will form the foundation of the new entities."
She said thousands of submissions had been received on the Water Services Entities Bill and a report was due to be presented to the Cabinet next month.
It was just the first step in reform and there would be more opportunities for the Three Waters sector and the wider public to have a say.
Management of Three Waters infrastructure was due to pass from the 67 councils throughout the country to four new water entities, under the industry regulator Taumata Arowai on July 1, 2024.
Legislation would be presented to Parliament later this year to set out the functions and powers of the four new entities, Ms Mahuta said.
Further legislation would also establish economic regulation and "a consumer protection system".
"My goal is for this legislation to reflect international best practice and also to be uniquely tailored to Aotearoa New Zealand’s local environment and context."
Part of the uniqueness would be recognising and embracing Te Mana o te Wai — the health and wellbeing of waterways, she said.