The Government has confirmed it will establish an independent national regulator of drinking water supplies as part of the Three Waters Review.
The new regulator, which is yet to be named, is based on best practice overseas, Local Government Minister Nanaia Mahuta said.
"New Zealanders have every right to expect clean, safe drinking water," Ms Mahuta said.
"Unfortunately, over many years, our regulatory regime has not kept pace with international best practice.
"In addition, enforcement of the existing regulations has become fractured and increasingly ineffective."
The change comes after the campylobacter outbreak in Havelock North in 2016, which led to thousands of cases of gastro, killed up to four people and left others with ongoing complications.
That outbreak was caused by contaminated ground water flowing into a bore pump site and being sent through the taps.
A Government inquiry was launched, and Minister of Health David Clark said "this Government has learned the lessons from the Havelock North tragedy and we are working to fix the problems exposed by the resulting inquiry".
"Cabinet considered a range of options for the form of the new regulator, including rolling it into an existing entity, but concluded that a dedicated standalone regulator would have the high degree of focus and independence needed to provide the best protection for New Zealanders," Mr Clark said.
Legislation to create the new agency will be introduced to Parliament "in coming months" and is expected to pass in 2020.'
After the Havelock North outbreak, Napier chlorinated its water supply for the first time, after previously drawing and distributing artesian water from the aquifer below.
However the change in water properties has led to issues, with discoloured water still being experienced frequently by residents some years later.
An independent test of the discoloured water last year showed the discolouration was due very high manganese content, and health experts warned that the discoloured water should not be consumed by certain demographics, including infants and the elderly.
The Three Waters Review is tasked with looking at New Zealand's drinking water, waste water and storm water networks, and recommending any changes required.
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