The Government has given local authorities the opportunity to be part of the new regime initially on a voluntary basis with financial compensation for the loss of water reticulation and treatment assets. However the issue is of such importance that compulsion is a likely next step for local authorities choosing not to join voluntarily. That leaves the fate of hundreds of rural water supply schemes, usually from wells, which are owned by small local communities but managed by district councils. Many of these schemes were initially established as rural stock water systems from which a small percentage is taken as potable water. For those who rely on a reticulated public potable water supply, it does not really matter which entity manages the system so long as the water is safe and reliable.

Source: Stuff March 12, 2021 16:02 UTC