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It was a bombshell announcement from Local Government Minister Nanaia Mahuta this morning
The Government will go ahead with its plans for water reform, and will take power over water off local councils.
Instead, four new water bodies will look after drinking, storm and waste water.
Councils were promised a right to opt out, but that's now been taken off the table and the government will force councils to hand over control.
Nanaia Mahuta told Heather du Plessis-Allan the reform is not confiscation.
"It provides these water service entities with a financially sustainable ability to fund infrastructure and asset management."