Fonterra has confirmed it is stepping away from supplying water to Waitoa. That means the current arrangement cannot continue, and Council needs to ensure the community has a safe and reliable drinking water supply into the future.

The estimated project cost is $8.2 million, based on high level estimates. Final costs would only be confirmed if the project proceeds and detailed design work is completed.

Yes, but the extra kerbside targeted rate will be automatically remitted (removed) before your rates are calculated for the year ahead, once Council has confirmed no additional bins have been supplied.

Under the proposed approach:

• Waitoa property owners would contribute 15% of the project cost (estimated at around $10,000 per property), and
• properties across the rest of the district that already pay water rates would contribute the remaining 85%, through targeted water rates (approximately $35 per year for the next five years).

Waitoa ratepayers would also start paying targeted water rates.

All figures are estimates and subject to consultation and future decisions.

Council considered a range of funding options for this project, including scenarios where Waitoa property owners would fund 100%, 75%, 50% or 25% of the total project cost.

Council agreed that Waitoa property owners should be liable for 15% of the project cost. This level was considered to balance fairness and affordability for Waitoa residents, and to be broadly comparable with the estimated cost households would face under a self supply option.

The decision also reflects Council’s current approach where the cost of providing safe drinking water is shared across the district, through targeted water rates paid by properties connected to Council supply. This helps avoid placing the full cost on a small community, where it would be unaffordable.

More detail on the funding split and options considered is in the Matamata Piako District Council meeting agenda on 25 September 2024.

The Community Panel, made up of local residents, worked through the options, heard from experts, and discussed impacts, costs, and responsibilities. Their final recommendations were unanimous, and Council has endorsed them in principle.

Options considered included individual self supply (such as rainwater tanks), a community managed bore, and Council supply. After weighing up feasibility, cost, fire fighting capacity, long term responsibility, and risk, the Panel recommended Council supply.

This proposal follows the same approach used for other essential water and wastewater projects, where costs are shared through targeted rates rather than being placed entirely on a small community.

We already share water costs across the district. Everyone who is connected to a water supply pays the same amount because they receive the same service - clean, safe drinking water. Ratepayers in Morrinsville already subsidise Matamata or Te Aroha, and vice versa - this proposal just adds Waitoa into that 'pool' of water ratepayers.

If the proposal is approved, all properties within the Waitoa supply area would contribute to the one off project cost, whether or not they choose to connect.

Connecting to the town water supply would be a choice. Properties that connect would pay the standard ongoing water charge.

Properties that do not connect would still pay an ongoing charge, but this would be lower than the charge paid by connected properties, reflecting access to the network rather than water use.

More detail is included in the supporting booklet and Change Proposal.

Each situation is considered on its own merits.

Council has taken similar approaches in the past — for example, with wastewater projects in Waharoa and Tahuna — where decisions were made based on affordability and long term need.

Waitoa’s situation is different because Fonterra is stepping away from supplying water, meaning something has to change to ensure the community has a safe and reliable drinking water supply.

Water restrictions are used across the district during dry periods or when water systems are under temporary pressure. They balance the need for household water with environmental impacts – making sure we’re not taking too much water, to the detriment of flora and fauna. They are a common demand management tool and don’t automatically mean there isn’t enough water long term.

Any decision to connect Waitoa to the Te Aroha supply would need to be supported by technical assessment to ensure the system can continue to meet drinking water standards and everyday demand. That work would form part of the next stages if the proposal proceeds, and delivery would ultimately sit with Waikato Waters Ltd.

There is no confirmed start date. If approved, the project would not begin in the next year or two, and delivery would ultimately sit with Waikato Waters Ltd.

Information on how to provide feedback is included in the consultation material and on this page.

What people share during consultation will help inform Council’s decision.

After consultation closes on 21 May 2026, Council will:

• review all feedback received,
• consider any changes or additional information needed, and
• make a final decision on whether the proposal should proceed.

Updates will be shared on this page.