Wellington Water Rates

As announced recently by Wellington City Council, the way water rates are being charged to Wellington property owners is changing. 

General rates will no longer include the costs of water supply as of 1 July 2026, a new organisation, Tiaki Wai, will be responsible for delivering drinking water, wastewater and stormwater services across the Wellington metropolitan area, replacing Wellington Water. They will also own and operate Wellington City’s water assets.

What is happening:

  • Water will no longer be included on general rates bills

  • Separate water bills will be received as of the 1st July 2026 

  • For the first year, the charging methodology will remain broadly similar to the current council approach

  • In the longer term the goal for Tiaki Wai is to ensure that charges for water services are consistent for similar properties that utilise comparable services.

  • The amount you pay will be higher than you have been paying through rates, but level of increase is yet to be confirmed.

What this means for Wellington landlords:

  • For most landlords there will unfortunately be an immediate increase in property holding costs as;

    • Water charges likely increase by a few hundred dollars annually initially.

    • Further increases are signalled over coming years as infrastructure investment ramps up

  • Under the Residential Tenancies Act, landlords can only charge tenants for water usage where:

    • The property is individually metered; and

    • The charges relate to consumption rather than fixed infrastructure charges

  • Given the above, most landlords will be unable to meet the requirements for on charging water use until meters are installed at properties.

What can Wellington landlords do?

  • Firstly its important to review your new Council Rates cost as these would have fallen to reflect the removal of the water rates aspect from general rates. This will give a clear indication of the full picture of any increase in costs for the year. You can do this by using the WCC Website Property Search Page

  • Until water meters can be installed, property owners will need to factor any additional costs into their running costs

  • Consideration could be given to these costs as part of rent setting/reviews however given the current softer Wellington rental market conditions it may be challenging to pass on these onto tenants in the form of rent rises

  • Landlords can look to install water meters as soon as they can in order to be able to on-charge any usage to tenants however Tiaki Wai have advised the installation of meters is not planned until around 2028 at this stage.

  • Landlords will still need to meet other requirements under the Residential Tenancies Act in order to be able to on charge usage including ensuring the tenancy agreement specifies the tenant is liable for water use charges.

While many of the finer details are still being worked through, it is clear that water costs are likely to become a more significant consideration for Wellington property owners in the years ahead. Understanding how the new charging system works, planning for increased holding costs, and ensuring your tenancy agreements and property infrastructure are set up correctly will help put you in the best position as these changes are implemented. 

As further information becomes available, we will continue to keep our clients informed and provide guidance on how these changes may affect their investment properties.

James Moran