Watercare will pour $500 million into replacing and upgrading Auckland’s ageing water assets over the next 18 months — a 44% lift on the previous comparable period — in a move the Government says will improve service quality while supporting jobs and easing bill pressure.
Local Government Minister Simon Watts said the programme sits under the Watercare Charter, developed with Auckland Council to keep charges lower than earlier forecasts and “save households nearly $900 million over four years.”
About a third of the funding is earmarked for treatment plant upgrades, with the balance going into renewals of pipes and other assets. Watercare will also tender around $75m of water and wastewater pipe replacement contracts before Christmas, opening the door to smaller firms alongside existing suppliers.
The investment follows a turbulent few years for Auckland’s water system. Severe 2020–21 drought conditions forced outdoor water restrictions and accelerated the hunt for new supply. Watercare subsequently secured and activated consents to draw up to 300 million litres a day from the Waikato River, bolstering resilience during dry spells.
On the wastewater side, the city’s largest infrastructure project — the Central Interceptor tunnel — continues toward mid-2026 completion, with the budget revised to $1.523b amid post-pandemic cost pressures. The tunnel is designed to reduce overflows and protect waterways during heavy rain.
Watercare lifted prices by 7.2% on 1 July 2024, and again by 7.2% on 1 July 2025 as it moved to a financially independent footing under Commerce Commission oversight. Ministers say the Watercare Charter, now in law, has halved the size of this year’s planned increase compared with earlier council scenarios — a central plank of the Government’s claim that bills will be lower than previously expected even as investment rises.
Watts said the combined approach from Watercare, Auckland Council and the Government “is accelerating investment in Auckland’s water infrastructure” while leaving “more money in household budgets” than prior forecasts suggested.
Watercare says most works will be delivered through existing contractors, with competitive tenders widening participation. Officials will monitor delivery against the Charter’s affordability and service-quality goals as the renewals programme ramps up through 2026.
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