Waitaki District Council looks set to rejoin the Southern Waters water services group, a move member mayors say will strengthen the proposed entity.

At a meeting on Tuesday (February 25), the council voted to join Central Otago, Clutha and Gore district councils to deliver drinking water, wastewater and stormwater services from mid next year.

However, it remains unclear whether two other South Island councils - Timaru and Mackenzie - will sign up.

Waitaki had previously withdrawn from the joint approach to pursue an in-house water services model, a proposal which was later rejected by the Department of Internal Affairs.

In a statement following Tuesday's decision, Waitaki mayor Mel Tavendale said a larger organisation would deliver benefits “in both efficiency and cost savings”.

However, councillor Sven Thelning said under either an in-house model or a joint council-controlled organisation ratepayers should expect “massive price rises” that were "going to hurt".

It was a sentiment echoed by council chief executive Alex Parmley, who said there had been “historic underinvestment” in three waters infrastructure nationally, including in Waitaki District.

He said, “the bill has now arrived”, estimating the district would need close to “a quarter of billion dollars worth of investment” over the next decade.

Waitaki’s proposed inclusion will now be considered by each of the existing member councils, with Central Otago scheduled to make its decision at a meeting on March 25.

At that meeting, elected members will also consider foundational documents for Southern Waters, including a shareholders’ agreement and constitution.

The potentially five-council entity could later expand further, with Timaru and Mackenzie district councils still working through their options.

“We respect that Timaru and Mackenzie District Councils must make decisions they believe are in the best interests of their communities,” a joint statement from the three confirmed Southern Waters mayors said.

“These are significant, long-term choices, and each council must weigh its options carefully.”

Southern Waters programme director Fiona Smith (middle) with Clutha District Council staff on a site visit. Image: Supplied

If all three councils agree to Waitaki’s re-entry, further work would be undertaken to finalise documentation and transition planning, the statement said.

In a report to council, Central Otago mayor Tamah Alley said she had “spent a substantial amount of time” over the past month working with Southern Waters and engaging with councils considering joining the entity.

Southern Waters programme director Fiona Smith, who started in the role six weeks ago, has been visiting key water assets across Central Otago, Gore and Clutha districts as part of transition planning.

“Seeing the systems first-hand and hearing directly from the people who operate them is essential,” she said in a statement earlier this month.

“You can learn a lot from reports, but you gain a much deeper understanding by being on site and talking with the teams who manage these assets every day.”

Fiona relocated from Sydney, where she was executive manager of strategy and performance at WaterNSW, one of Australia’s largest water utilities.

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