Residents of Central Hawke’s Bay are bracing for a dramatic rise in water rates, with projections showing costs could triple over the next decade. By 2035, the average household connected to council water services may see annual bills soar from around $2,500 to more than $7,000. This steep increase is sparking widespread concern and frustration in the community, as many question how they will manage the added financial burden.

Why Are Water Rates Rising?

The primary driver behind the increase is the need for massive investment in water infrastructure. Central Hawke’s Bay District Council (CHBDC) is grappling with aging and failing assets, new regulatory standards, and the lingering impacts of Cyclone Gabrielle. Key factors include:

Aging Infrastructure: A quarter of the district’s drinking water pipes and 40% of wastewater pipes are at high risk of failure. Main town reservoirs are over a century old, earthquake-prone, and require replacement.
Non-Compliant Treatment Plants: All six wastewater treatment plants in the district need upgrades, with one already under an environment court order.
Stormwater and Roading Repairs: The district faces $129 million in unfunded roading repairs and major investments needed for stormwater systems, much of it stemming from cyclone damage.
Regulatory Demands: New water quality and delivery standards require significant upgrades and ongoing investment.

The New Water Scheme: ‘Local Water Done Well’

The water rates increase is linked to the government’s new “Local Water Done Well” scheme, which replaces the previous Three Waters policy. Under this model, councils must decide how to meet new national standards for water delivery and infrastructure quality. Central Hawke’s Bay District Council is considering three options:

Regional Controlled Organisation: Pooling resources with other councils for greater efficiency.
Stand-Alone Council Organisation: Managing water services independently.
In-House Delivery Unit: Direct council management of water infrastructure.

The council’s preferred option is the regional model, believing that a team approach will help address the scale of the investment needed.

Community Concerns

Many residents are alarmed by the projected costs. Some say the rates are simply unaffordable, especially for those on fixed incomes. Others point out that Central Hawke’s Bay already has among the highest rates in New Zealand, and fear that more people will be forced to leave the district as costs rise.

Local voices express frustration that the area, once seen as an affordable place to live, now faces rates higher than those in larger centres like Hastings. There are calls for the government to offer incentives for water conservation and greywater reuse, rather than imposing blanket increases that hit everyone equally.

Council’s Position

Mayor Alex Walker acknowledges the challenge, describing the situation as a “perfect storm” of past underinvestment, rising standards, and the need to plan for future growth. She admits that a tripling of water rates by 2035 is “intimidating” for households and says the council is working to ensure residents understand the looming costs.

The council notes that under the previous Three Waters plan, costs might have been lower, but the new scheme offers more local control and flexibility. However, the mayor concedes that no model is a “silver bullet” for affordability.

What Happens Next?

Public Consultation: Residents have until 12 June to make submissions on the proposed water infrastructure scheme and share their views with the council.
Three Year Plan: The council is also developing a Three Year Plan (2024–2027), focusing on recovery from Cyclone Gabrielle and setting priorities for water, wastewater, stormwater, and transport investment.
Rates Calculator: Households can use the council’s online rates calculator to see how the proposed changes will affect their property.

Summary

Central Hawke’s Bay is facing a significant water rates increase, driven by the urgent need to repair and upgrade failing infrastructure and comply with new national standards. While the council is exploring options to manage costs and is seeking community input, many residents are worried about affordability and the district’s future. The coming months will be crucial as decisions are made on how to balance essential investment with the financial realities facing local households and businesses.