As the first rates notices including an IAWAI water services charge roll out this week, residents and businesses are being assured the water component is a split of the previous total charge, not an additional or a replicated cost.
IAWAI chief executive Peter Winder says the organisation is aware some people have seen the total annual costs for water services and assumed it was a new charge.
“While that isn’t the case, we appreciate that at first glance it could come as a shock. We want to reassure people the separated water charges with their rates bills are not an additional or new charge. Water and wastewater services have been removed from council rates and are now billed separately. It’s not an addition, and this has been explained more fully in recent rates notices and in detail in the current notices.
“As was forecast in our first Water Services Strategy water services costs for the average residential property are similar to last year’s, but the rise for these costs in 2026/27 under IAWAI is lower than was predicted by the councils as standalone organisations.
“While we have managed to reduce the projected rises for this year, we recognise any increased cost is tough for people at the moment. The financial challenges faced by water services across the country are well known, and are why Government direction and policy led to IAWAI being formed last year. We are working hard to find further efficiencies and minimise the impacts of the historic and new financial challenges we face for our communities.”
As systems transition fully from councils to IAWAI, and to save costs for residents, IAWAI and the councils are combining details on rates invoices.
Payment options and arrangements which were in place or offered by councils for rates will also apply to IAWAI charges. The national rates rebates scheme operated by the Department of Internal Affairs and administered by councils has been extended to include both rates and water charges. The rebate will be calculated including both, with the total of the rebate applied in one amount to the council rates portion.
The rollout has been progressing well, and through a shared service arrangement, Hamilton City and Waikato District Council rates teams are working with IAWAI staff to manage any queries. For invoicing information, visit the rates pages of the websites of either council, or for more information on IAWAI go to www.iawai.co.nz.
IAWAI is 100% owned by Hamilton City Council and Waikato District Council, and working in partnership with Waikato Tainui. The company was formed in response to government policy and direction, and to deliver efficiencies greater than the councils could on their own. IAWAI became responsible for water and wastewater services across both council areas from 1 July 2026.