Water reform is an important issue in New Zealand. There have been several rounds of reforms on water in recent years, including Labour’s Three Waters reforms which were repealed and replaced by the Coalition government’s Local Water Done Well.

Against this backdrop of water reforms, an important question is whether and how to charge for water services.

TDB has analysed the structure and levels of volumetric water charges across the 19 local councils in New Zealand that disclose their water charges on their websites as of early 2026. The other local councils typically recover their water services costs through rates. The 19 local councils covered in this report account for around 60% to 65% of the population of New Zealand.

There is substantial variation in both the structure and levels of volumetric water charges across the 19 councils. Watercare (Auckland Council’s CCO) has the most comprehensive water charging structure of the 19 councils, with fixed and volumetric charges for both water supply and wastewater. On the other hand, Christchurch City Council has a 900-litre daily allowance of ratepayer-funded water supply before volumetric water charges start to apply.

Far North District Council has the highest volumetric charge for water supply at $3.83 per cubic meter followed by Hauraki at $3.71 per cubic meter. At the other end, Timaru has the lowest volumetric charge at $0.96 per cubic meter, followed by Selwyn at $1.09 per cubic meter. The average volumetric charge across the 19 councils is $2.25 per cubic meter.

In terms of fixed charges, Central Otago District Council has the highest fixed charge for water supply at $595.36 p.a. followed by Timaru District Council at $572.17. Meanwhile, Whangarei has the lowest annual fixed charge at $49.57. The average annual fixed charge across the 19 councils is $210.46. Twelve councils have fixed charges for water supply, with the other seven relying on volumetric charges only.

Combining volumetric and fixed charges and assuming 15 cubic meters of water use per month, the indicative total monthly water charge (including water supply and wastewater where applicable) varies from $165.67 at Tasman District Council to $31.50 at Gisborne District Council. The average indicative total monthly charge across the 19 councils is $61.07.

In conclusion, there is substantial variation in the level and structure of water charges across the 19 councils covered in this report. As local councils across New Zealand face increasing financial and environmental pressure, greater use of volumetric charges for water supply and wastewater seems likely.