The three waters reform in New Zealand: learning from local government narratives for improved governance

ABSTRACT New Zealand's Three Waters Reform was introduced in response to the 2016 Havelock North water contamination crisis, which caused widespread illness and fatalities and exposed systemic failures in the country's water service delivery. The reform shifted control from 67 local councils to four regional Water Services Entities to improve efficiency, infrastructure investment, and regulatory oversight. This study critically examines local government responses to the reform by analyzing their submissions on the Water Services Entities Bill 2022. Using qualitative thematic analysis and applying the OECD (Organisation for Economic Co-operation and Development) Water Governance Framework, we assess governance effectiveness, efficiency, and trust. Findings reveal major concerns over the loss of local voice and accountability, affordability, and the complexity of proposed governance structures. Despite these concerns, councils generally acknowledged the importance of mana whenua (Māori tribal groups with traditional authority over specific areas of land and water, based on ancestral ties and cultural responsibilities) participation in decision-making processes and supported the establishment of Taumata Arowai as an independent regulator. The study highlights the importance of transparent, inclusive governance and context-sensitive reform implementation. Its insights contribute to international debates on public sector reform, offering lessons for strengthening stakeholder trust and institutional legitimacy in large-scale governance transitions.