New Zealand Government Launches 3-Month Window for Local Government Reform Proposals

The Government is giving councils a three-month window to put forward proposals to simplify and strengthen local government in their regions, RMA Reform and Infrastructure Minister Chris Bishop and Local Government Minister Simon Watts say.

New Zealand’s local government system is too complex, too costly, and too hard to navigate, Mr Bishop says.

We currently have 78 city and district, regional, and unitary councils across the country – a high number for a country of our size.

Councils shape the places we live and the services we rely on. But too often, the system is tangled in duplication, disagreements, and decisions that defy common sense.

Councils are critical to delivering the new planning system, which will pass into law this year, enabling housing growth and supporting infrastructure investment.

We gave careful thought to sequencing this work after resource management reform, but the benefits of doing it now are too large to ignore.

These reforms are tightly linked. Fixing the planning system while leaving local government untouched would just lock in the same problems. We’re not prepared to do that. It makes far more sense to tackle both together so councils can plan once, adapt once, and get on with delivering.

A simpler, more efficient local government system will make it easier to deliver those priorities.

In November last year, Ministers put forward a proposal to simplify local government by reducing duplication, improving accountability, and making it easier for councils to deliver for their communities. The proposal would remove the elected regional councillors and require councils to work together on region-wide plans to simplify structures, cut duplication, and deliver services more efficiently.

We’ve now completed consultation on that proposal, which received more than 1,100 submissions from councils, sector groups, iwi, and the public.

What we heard was consistent. There’s strong support for change, but many councils want more flexibility to get on with reform in a way that works for their region.

Several mayors have told us they’re ready to move now, with clear ideas about what should change and how to do it.

We’re giving them the opportunity to get on with it through a ‘head start’ pathway.

But that opportunity won’t sit open forever. If councils don’t step up and put forward credible proposals, the Government will step in and make those decisions.

Our message to councils is simple: lead your own reform, or we will do it for you. Either way, change is coming.

Mr Watts says the Government’s new Head Start pathway will enable councils to pitch their own reorganisation ideas.

From today, councils have three months to work with others in their region and put forward proposals for how they want to reorganise their local government arrangements, Mr Watts says.

Proposals should focus on creating larger, more efficient unitary authorities that streamline functions, reduce duplication and improve decision-making.

We’re giving councils real flexibility. Proposals don’t need to cover an entire region, but they must show clear support, strong leadership, and real benefits for communities.

Officials will assess proposals against clear criteria, including: Can it actually be done? The proposal needs to be realistic and able to be delivered on time.

Does it support the new planning system? It should make it easier, not harder, to roll out new planning rules and plans.

Does it simplify things? It should reduce duplication and make decision-making clearer and more efficient.

Will it deliver better value? It should improve efficiency, save money over time, and support better infrastructure and services.

Are communities still well represented? It needs to keep a strong local voice and fairly represent different communities, including urban and rural areas.

Cabinet will then decide which proposals to progress, with decisions later this year. Endorsed proposals will then be developed in detail and signed off in 2027, with changes implemented ahead of the 2028 local government elections.

Mr Watts says some councils are already progressing this work, and the Government wants to support that momentum.

Councils told us they want reform, but they also want a bigger role in shaping it. Head Start gives them that opportunity while keeping change moving, Mr Watts says.

This is about Government not getting in the way. With the Head Start approach, those ready to move can get on with designing arrangements that better serve their communities, without waiting for others.

For areas that do not come forward through the head start pathway, the Government will implement a backstop process to ensure reform still happens across the country. This will involve a standardised approach, including transitional governance arrangements while changes are put in place.

Final decisions on local government reform for those councils will be taken by Cabinet in 2027, with changes expected to take effect for the 2028 local elections.

Note to editors: Who can submit a proposal?

Proposals must be submitted by groups of councils, not individual councils acting alone.

To be eligible: A proposal must come from two or more territorial authorities (city or district councils).

The group must either: represent a majority of the territorial authorities directly affected, or represent a majority of the population in the affected area.

Regional councils cannot submit proposals.

Existing unitary authorities (except Auckland Council) can be part of a proposal.

Proposals can: Cover all or part of a region.

Include neighbouring councils from different regions (where it makes sense).

Result in one or more unitary authorities (generally one, but in some cases two or three per region).

What is a proposal expected to do?

Proposals should focus on creating unitary authorities.

This means: Combining regional and local council functions into a single organisation.

Reducing duplication and simplifying decision-making.

Creating a structure that works better at a regional or subregional level.

What criteria will proposals be assessed against?

All proposals will be assessed by officials against clear criteria before decisions are made by Cabinet.

Proposals must show: 1. Deliverability The proposal is realistic and can be implemented in a timely way.

It can be in place by, or soon after, the 2028 local elections.

2. Supports the new planning system It will help councils deliver the new planning system.

It avoids disrupting important work like spatial planning, environmental planning, and infrastructure delivery.

3. Simpler local governance It reduces duplication and complexity.

It improves how decisions are made across the region.

4. Economies of scale It enables more efficient delivery of services.

It supports better infrastructure planning and investment.

It enables effective delivery of key functions like transport, catchment management.

5. Maintains a strong local voice Communities continue to be represented fairly.

Local decision-making is preserved where it matters.

Urban and rural interests are balanced.

What happens next?

Councils have three months from today to develop and submit outline proposals.

Officials will carry out a rapid assessment of proposals.

Ministers will recommend which proposals should proceed.

Cabinet will agree in principle which proposals move forward to detailed design.

Final decisions are expected in 2027, with changes implemented ahead of the 2028 local elections.

What if a council doesn’t take part?

If councils choose not to use the Head Start pathway, or aren’t ready to, the Government will step in to ensure reform still happens through a backstop process.

Under the backstop, the Government will set a standard approach to reorganising local government.

It is likely to include simplifying structures and reducing duplication, similar to the goals of the Head Start pathway.

There will be transitional governance arrangements (such as a board of mayors or other interim body) while changes are put in place.

The backstop process will be finalised in 2027, with changes expected to take effect from the 2028 local elections.

The aim is to ensure every part of the country benefits from a simpler, more effective local government system, whether councils choose to lead reform themselves or not.