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How funding and financing affects productivity

Local government funding and financing main illustration

Capital Strategic Advisors

Date published

1 June 2019

How funding and financing affects productivity: Implications for three waters reform and for local government funding and financing

As requested by the Minister of Finance, the Productivity Commission (the Commission) undertook an inquiry into local government funding and financing in New Zealand. In parallel with this work the Government is also considering reforms to the regulation, funding and provision of drinking water, wastewater and stormwater services (commonly referred to as the three-waters sector).

The Commission therefore engaged Capital Strategic Advisors Limited to undertake a case study of the three-waters sector, to identify changes councils could make to how they fund, finance and operate their three-waters activities and their business services more generally. The Commission requested the case study to:

  • identify the implications of the three-waters reforms for the work the Commission is undertaking on local government funding and financing (the LGFF Inquiry).
  • assist the Commission to form a considered view on the three-waters reform programme that is coherent with the Commission’s position on the LGFF Inquiry.


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