FAQs

In May this year, the government announced Head Start for Simplifying Local Government - a streamlined, voluntary pathway for councils willing and able to reorganise before the 2028 local body elections. 

This pathway enables a two-step process:  

1. Groups of two or more councils prepare and submit an outline proposal by August 2026.
2. If cabinet accepts the proposal then more detailed design would be progressed for legislation in 2027. Proposals would be implemented by May 2028.

Councils which choose not to progress via Head Start would enter a compulsory backstop process after the 2028 elections. This would involve the Government developing its own proposals for reorganisation.

Read more at Head Start pathway: Policy document – Simplifying Local Government 

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Central Government will assess all outline proposals against five criteria: 

• Deliverability
• Supports the new planning system
• Simplifies local governance
• Economies of scale
• Maintains local voice 

Central government has indicated that if a Head Start proposal is accepted, more community consultation will occur as part of the detailed design phase in 2027.

Otago Regional Councillors are expected to remain in place until the 2028 local elections, after which they will be replaced by an interim body (for example, a board of mayors, crown commissioners, or a combination of both) until any new territorial structure is put in place.

Councils which choose not to progress via Head Start would enter a compulsory backstop process after the 2028 elections. This would involve the Government developing its own proposals for reorganisation.  

Simplifying Local Government is a Government initiative to make the local government system simpler, more efficient, and easier for communities to understand and engage with.

It focuses on reducing duplication between councils and improving how decisions are made across regions.

Read more information at https://www.dia.govt.nz/simplifying-local-government

Central Government’s reform programme is wide-ranging and has direct implications for what and how councils deliver for their communities. Some, such as water services and resource management reform are further along the process, while others are only in the early stages.

As well as the Simplifying Local Government Reform, councils are also facing: 

Local Water Done Well is the Government’s new framework for managing drinking water, wastewater, and stormwater. It has now been legislated through the Local Government (Water Services) Act 2025, which establishes how water services are governed, funded, and regulated. In response, QLDC is in the process of establishing a Water Services Council Controlled Organisation to deliver its water services. There will be significant cost associated with establishing the new entity. The WSCCO is expected to take over the deliver of these services from 1 July 2027. Stay up-to-date at qldc.govt.nz/our-water-done-well.

Resource Management Reforms propose the biggest overhaul of planning and environmental legislation since the Resource Management Act 1991 was introduced. The new Planning Bill and Natural Environment Bill will shape how Council plans for development and growth, and cares for our natural environment and special landscapes. Changes proposed include reducing the number of consents needed by narrowing the types of things that can be regulated and creating more consistency between council plans across the country. This may result in efficiencies and cost savings in the future, but the immediate impact and cost to implement the reform is unknown, potentially putting further pressure on budgets.

The Systems Improvement Bill seeks to refocus the purpose of local government by removing the ‘four wellbeings’ and defining what services are considered core business. It also introduces requirements for benchmarking and reporting across councils, removes some minor regulatory obligations and introduces a standardised code of conduct and standing orders for Council meetings.

The government is also proposing to cap annual rates increases at within a band that defines both the minimum and maximum increase. While the details have yet to be confirmed, Council will need to consider how future rates capping impacts its long-term planning process. This means there’ll be some tough choices coming on what services Council should increase, maintain or decrease as we develop the Long Term Plan 2027-2037. The government expects to enact legislation during 2026 and the requirements to cap rates are expected to be in place by 1 July 2029.

• Two or more territorial / unitary authorities
• Regional and sub-regional groupings
• Cross-boundary groupings

They must represent a majority of: 

• directly affecting territorial authorities, or
• population across directly affected areas 

• Minority groupings
• Regional councils
• Auckland council
• Individuals / other organisations 

The government has indicated a general election will be held on 7 November 2026.    Whatever happens at the general election, the way local government works will change.  However, because the local government reform is not currently legislated, any potential change in government may result in changes to the reform approach.  

The Otago Mayoral Forum is having ongoing conversations about how local government could work in the region.  

Feedback received through this process will support these discussions and we will keep the community updated as any potential proposals become clearer.