QLDC CCO water charges set to rise to a future $4,889 per household

A full QLDC council meeting today (August 26) will be asked to approve an external water services organisation (CCO) and a water services delivery plan (WSDP) that involves annual QLDC water charges per household rising to $4,889 by 2033 as well as extra council debt.

The vote is needed today in order to hit a Government deadline in early September that requires local councils to have a funding plan in place.

The briefing document to be presented to councillors today paints a bleak picture of future costs that will hit residents as CCO water charges - on top of council rates and increased debt.

“Affordability of household water charges is a key consideration in QLDC’s WSDP. Over the next decade, average residential household charges for water supply, wastewater and stormwater are projected to rise from $1,500 in FY24/25 to $4,889 in 2033/34, reflecting the significant investment required to maintain, upgrade, and expand water infrastructure.

“Despite these increases, water charges as a percentage of median household income are expected to remain within DIA’s indicative target of 2.5%, rising from 1.1% to 2.3% over the same period. By comparison the average electricity charge per household for Queenstown Lakes is currently $3,542, representing 2.4% of the median income.

“To help manage affordability, QLDC is exploring a suite of initiatives, including a district-wide water demand management programme (enabling future volumetric charging), better integration of infrastructure and land use planning, and alternative funding tools such as bespoke developer agreements and the Infrastructure Funding & Financing Act.

“These measures are designed to ensure that water services remain affordable, transparent, and fair, while supporting the long-term sustainability of the district’s water infrastructure.”

Source: QLDC briefing document to elected members. August 26, 2025.

The same document also makes it clear that the CCO will be borrowing extensively to fund the increased cost of drinking, waste and storm water infrastructure.

Councillor Niki Gladding told Crux today that she felt that the vote was being rushed through without adequate time to consider the implications of the move.

She also challenged the validity of what she referred to as “threats from the Department of Internal Affairs” to force councils to take on this funding or face having Government Commissioners sent in to do the job for them.

“In my mind having commissioners come in might not be a bad thing” Councillor Gladding told Crux. “At least then we’d see what’s really going on and what the real costs are.”

Councillor Gladding added that in a recent vote against an external CCO for the Waitaki District Council there were DIA officials in the council chamber when councillors made the decision to oppose the move and keep water services in house.

You can read the full QLDC Water Services Delivery Plan here.