Thames-Coromandel District Council is “going it alone” after Tauranga City Council and Western Bay of Plenty scrapped plans for a joint Water Services Organisation.

The news comes after the three councils decided in June this year to explore combining their water services.

However, earlier this month, Tauranga’s council voted to manage water services internally until July 2028.

Thames-Coromandel District Council chief executive Aileen Lawrie told the Waikato Herald the joint venture between the three councils had been the best option to keep ratepayer bills “as low as we can”.

“We’re disappointed that Tauranga City Council and Western Bay of Plenty District Council chose not to proceed with the joint WSO at this stage.”

Thames-Coromandel District Council’s focus has now shifted to September 3, when the Water Services Delivery Plan must be delivered to the Department of Internal Affairs.

At this stage, the council was looking at managing its water services in-house.

“Bringing our water services into an in-house business unit will enable us to complete the establishment of a separated entity, which will make any move to a multi-council WSO easier to establish,” Lawrie said.

Thames-Coromandel District Council will now keep its water delivery services in-house. Photo / TCDC

The council was expected to make its final decision on the future Water Services Delivery Plan on August 20, Lawrie said.

She said the council had the capacity and planning to implement all necessary infrastructure upgrades through and beyond the current Long Term Plan period.

“Our debt is relatively low, and our assets are in good condition. Going it alone is a viable option and meets the legislative requirements.”

While costs to date had mainly been covered by central government funds, moving to the in-house model would involve unavoidable costs for ratepayers, Lawrie said.

“However, we will do all we can to minimise these to ensure affordability.”

Tauranga City Mayor Mahé Drysdale. Photo / Alisha Evans

During consultation in June, the joint option with Tauranga and Western Bay of Plenty was favoured by 51% of submitters, while 46% said they preferred an internal water services unit.

“We’re optimistic about reaching an agreement in the future and will keep working to build that relationship,” Lawrie said.

Speaking to Local Democracy reporter Alisha Evans earlier this month, Tauranga Mayor Mahé Drysdale said he was unhappy with his council’s decision.

He said the city risked losing Western Bay and Thames-Coromandel as partners, and not working with the two councils was “bad faith” because they had worked together over waters and already shared services.

“We’ve worked very closely with them, and we’re basically casting them aside now.”

Meanwhile, Thames-Coromandel District Council signed a four-year, $60 million maintenance contract with Citycare Water last month.

Citycare Water, owned by Christchurch City Council, will start the contract on April 1, 2026.

They will be in charge of repairing pipes, maintaining plants, managing stormwater systems and ensuring compliance with water standards.

Tom Eley is a multimedia journalist at the Waikato Herald. He previously worked for the Weekend Sun and Sunlive.