Three Water Asset Management, New Zealand

The problem

In 2016, a water supply contamination incident in Havelock North left 5,500 residents ill. To prevent future contamination, the New Zealand Department of Internal Affairs (DIA) announced it would improve asset management in the three-waters sector (potable, waste, and stormwater).

How we helped

Castalia diagnosed problems of water asset management in small local authorities and identified factors that were most important in driving good asset management. Our analysis found that local authority (council) scale was the most important driver of asset management maturity. We recommended amalgamating three-waters management across a number of local councils as the most effective way to improve asset management maturity.


DIA is using Castalia’s report to look at ways to reform the three-waters sector in New Zealand. Efficient scale of asset management units and pathways to amalgamation is at the forefront of the policy debate.

Our team

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How can we help you?