The bill to fix the country's failing water infrastructure will be higher than expected due to inflation and climate change, according to Infrastructure New Zealand.
Much of the Wellington region went into level 2 water restrictions last Wednesday as high demand put pressure on the drinking supply.
Meanwhile, the capital's ageing pipes have meant almost half of the water is lost through leaks. More than 3000 leaks flow across the wider region, as water regulator Taumata Arowai actively prepares to "exercise its powers in the event that a water emergency occurs", Local Government Minister Simeon Brown said in a media release last week.
Wellington Water, the organisation responsible for managing the water network, estimated it would need more than $1 billion every year over the next decade to upgrade water infrastructure.
Infrastructure New Zealand advocacy and strategy lead Martina Moroney said the industry body is calling for "clarity" for its members, the wider workforce, and local governments over the reform.
"Good reform takes time. Getting sustainable funding right is going to take time," she said.
The National-led government has promised to restore council ownership and control of water assets by repealing and replacing Labour's controversial Three Waters law. As more clarity is sought from the Government over potential law changes, councils are budgeting for water infrastructure repair jobs in their long-term plans.
While the total cost to repair the infrastructure nationwide was estimated at up to $185 billion five years ago, the figure is expected to have risen in the years since due to "inflation pressure" and "further asset deterioration", Moroney said.
"My call on what that number is going to look like probably isn't the one we should be looking for."
The Government has not revealed the new cost estimate, but Brown agreed the bill will be steep.
"No doubt it's going to increase in this year's long-term plans that councils are developing," he said.
"The reality, though, is there's a range of variables in terms of what those longer term estimates may or may not be."
Infrastructure New Zealand is now calling for water meters to be introduced.
Local Government New Zealand's Sam Broughton said the meters will help councils "understand when and where the demand is, and also where any leaks are in the system".
To avoid double-digit rates rises, Infrastructure NZ wants councils to be allowed to borrow more. There would be independent oversight of its borrowing and spending.
Brown said the Government's model "will be about ensuring that councils have financially sustainable models".
"I know some councils are already thinking about what that might mean in their area."
Brown has promised there will be law changes to fix our water infrastructure this year.
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