Tarawera Sewerage Scheme
Lake Rotokākahi
Pipeline information
Costs/funding
Q: What is the cost of the scheme?
As at September 2024:
| TCC Scheme Phase | Budget approved (million) | Contingency (million) | Total (million) | Budget used (million) | Budget remaining (million) | % Completed |
|---|---|---|---|---|---|---|
| Planning / Design / Legal: | $2.48m | $0 | $2.48m | $2.48m | $0.02m | 99.92% |
| Stage 1 - Reticulation and Pumping Stations: | $13.38m | $1.34m | $14.72m | $11.0m | $3.68 | 74.98% |
| Stage 2 - Onsite LPGP installations (Start October 2024): | $11.03m | $1.10m | $12.13m | $0.43m | $12.0m | 0.36% |
| Totals: | $26.89m | $2.43m | $29.32m | $13.6m | $15.7m | 58.42% |
Q: How is this being funded?
The scheme is partially funded by the Ministry for the Environment (MfE), Rotorua Lakes Council (RLC) and Bay of Plenty Regional Council (BOPRC). The rest of the cost will be met by contributions from the owner of each property that benefits from the scheme:
- MfE: $6.5 million
- BOPRC: $750,000
- RLC: $1,485,000 ($2,700 contribution per property (increase from $1,500 approved as part of Long-term Plan 2024-2034 decisions). RLC using balance sheet for upfront borrowings ($20.2 million) to progress.
Total: $8,735,000 million.
Council will continue to explore a range of funding and regulatory options to further alleviate the capital cost burden for Tarawera property owners. These options will be consulted during the upcoming Draft Annual Plan (2025/26) considerations.
Council has already agreed to re-allocate $2m previously tagged for the Aquatic Centre towards this project.
Q: What will I pay?
Based on the current capital funding plan (with the current $8.0 M subsidies) the average net capital cost to each property, for the whole scheme (Stage 1 and 2), would be in the range of $38,000 – $42,000 (GST Excl) with the Stage 2 per property average installation costs, based on the tenders, approximately being $25,000 (GST Excl).
The range of expected average net cost for each property outlined above is on the basis that no further funding assistance and additional to the currently known sources ($8.735 M) is available.
Currently, there are 446 properties but part of the costs, for example Stage 1 of the project, is spread over 550 properties to allow for future development.
Q: The financial contribution is broken down into 2 parts:
Part 1: A share of the cost of installing the Tarawera reticulation network. The cost will be divided by 550, so each property will pay 1/550th of the network construction cost. Undeveloped sections will pay Part 1 only. This would cover the section’s contribution to the cost of the network construction and would leave a connection point in the street pipe for any future installation.
Part 2: An equal share of the total cost for installing LPGP systems onto all properties. Future operational, maintenance and renewal costs will be carried out by all ratepayers in the district connected to the council wastewater networks as part of the wastewater targeted rate (an estimated extra $30- 40 annually).
Each property benefiting from the scheme will pay both Part 1 and Part 2 contributions.
Properties with two or more dwellings will be assessed for additional Part 2 payments covering the additional connections required. This depends on the size of each additional dwelling and will be calculated in accordance with the %HUE each additional dwelling represents. The %HUE calculation is explained on page 130 in the Long-term Plan - (PDF, 7.1MB).
Q: Similar schemes are 50% government funded, why is Tarawera not?
Similar schemes in the district were Crown Deed funded, MfE committed $72.1m in a Deed of Funding arrangement in 2005 for the four priority lakes only – Rotorua, Rotoehu, Rotoiti and Okareka.
Signed in 2008 this Funding Deed (funding commitment) allocated $72.1m of Crown funding to various lake water quality interventions, which are approved by the Strategy Group and the Crown over the life of the deed, for the 4 lakes.
Under the Deed conditions, the RLC and BOPRC will fund, under their relevant funding policies, the actual costs of implementing the agreed programmes of interventions (for every $1 the Crown spends on interventions approved under the Deed, the combined contribution of the Councils must also be $1).
To date, RLC has received $42.5m from the Crown under the 2008 Funding Deed which has been applied to reticulation schemes and BOPRC has received $22.5m for interventions across all four lakes that come under the 2008 Funding Deed.
A recent variation re-allocated $10m of Crown funding – as a loan – to RLC towards reticulation at East Rotoiti. This has to be paid back to BOPRC. This $10m is included in the $42.5m.
Remaining Crown funding within the 2008 Funding Deed – including the $10m to be repaid by RLC – is allocated to ongoing initiatives for Lake Rotorua to achieve agreed nitrogen reduction.
This information, and other financials related to the project, are documented in both Councils’ relevant Long Term and Annual Plans, and Annual Reports. Long Term Plans and Annual Reports are required by law to be audited (under the Local Government Act).
Lakes not included in the 2008 Funding Deed have received other Crown funding through arrangements that are separate from that e.g. the funding for Rotoma and Tarawera reticulation.
The Tarawera scheme has its own Funding Deed. The $6.5m in Crown funding for Tarawera reticulation is coming from the Ministry for the Environment’s Freshwater Improvement Fund.
The Funding Deed between the Crown and RLC for Tarawera sewerage reticulation was finalised in 2022, confirming the allocation from the Ministry for the Environment (MFE) and a $750,000 grant from BOPRC. There is no requirement for BOPRC to provide further funding.
Property owners
Q: Ownership and operation of on-property systems
Some property owners believe that on-property systems should be privately owned and maintained by the property owner. However, LPGP systems are complex and last about 20-25 years.
If property owners were responsible, they would need to handle all costs for operating, maintaining, repairing, and upgrading the system themselves. In contrast, under the current Council policy, these costs are covered by sewerage rates paid by all connected ratepayers.
The Medical Officer of Health insists that such systems should be managed by the Council to ensure consistent and reliable health protection. Council officers also recommend against private ownership, as managing a mix of private and public systems would be difficult. For effective operation, the LPGPs must work together as part of a coordinated system.
Therefore, officers suggest that either all properties have private systems or none do, and all should be part of the publicly managed sewerage network.
Q: Self-installation by property owners
Some property owners want to install on-property systems themselves. The preferred contractor for Stage 2 is willing to enter into private contracts with these owners. Payment would be arranged privately, and the Council would not be involved.
If property owners choose this option, they must use the nominated contractor to benefit from the tender's cost savings and complete the work within a set timeframe. The work must meet Council standards for the network to function properly. Failure to meet deadlines may result in enforcement actions under the Local Government Act.
Owners who self-install will be responsible for their share of the preliminary and general costs from the Stage 2 contract, ensuring fairness to those who don’t self-install.
Q: What do I do if there’s a fault with my LPGP?
Rotorua Lakes Council can be called 24/7 for assistance. The operator will help you to resolve simple issues over the phone and dispatch a maintenance contractor if required. If the LPGP unit detects a fault, a red warning light will illuminate on the unit’s control box. The user instructions provided with the unit will describe what to do when this happens.
Download the user manuals in this section of the page
Q: I use my property infrequently, what should I know?
If you leave your property unused for a long time, just flush water through the system occasionally to keep the pipe from your house to the street clear. Instructions for this will come with the unit.
Q: I let my property (long term rental or short-term holiday let), what should I know?
You should provide clear instructions about not flushing, non-flushable items. Rotorua Lakes Council can provide signs and stickers to help you warn tenants.
Do your part to protect the health of our community downloadable poster - (PDF, 2.6MB)
Q: I am planning to build a new dwelling or subdivide, what must I do?
Discharge to land falls within the Bay of Plenty Regional Council jurisdiction. It may be possible to install an interim wastewater system until the LPGP installation for the property is installed. Please contact Rotorua Lakes Council on 07 348 4199 to speak with the Engineers Representative.
Q: What can and can't be flushed?
You should use the LPGP system in the same way as you do for a septic tank or AWTS system. No nappies, sanitary napkins, tampons or wet wipes (including those that are marked as flushable) can be flushed through the LPGP system. Property owners can be held liable for repairs in such cases.
For more information on what you can flush read the user manuals
Q: I have an Aerated Wastewater Treatment System (AWTS), can I continue to use it?
The Local Government Act requires that properties connect to a reticulated wastewater system if one is provided. Where a consented AWTS is in place the system can be used until the expiry of the consent. After that, the property owner is unlikely to get a new consent and will have to connect to the reticulation scheme at the actual cost at that time.
Q Can I apply for a resource consent for an Aerated Wastewater Treatment System with Nitrogen Reduction?
Yes, but with a sewerage reticulation available, when assessing the discretionary activity resource consent application, the Bay of Plenty Regional Council would need to consider it against (amongst other matters) the policy direction which supports connecting to reticulation where it is available. Also, in accordance with the Discretionary Activity rule – see Rule 14(5) ), the application would need to be supported in writing by Rotorua Lakes Council, which will not be forthcoming. These circumstances determine the likelihood of such an application having to be publicly notified and it will be unlikely consent will be granted at the end of the process.
Injunction order and Environment Court applications
Works on pipework installation under Tarawera Road started in May 2023 but paused in 2024 following obstruction by protesters near Lake Rotokākahiand to allow further engagement with iwi and mana whenua.
To ensure the safety of contractors and work sites and avoid further delays that could impact the health of the lake and would have cost implications for the community, council applied for an injunction so works could continue safely.
The injunction, which was granted in the Rotorua District Court in November 2024, prevents anyone from obstructing or interfering with the installation of the pipeline along Tarawera Road or entering the work zone without authorisation from the council or its contractors.
Work on the project resumed on February 24, 2025. On February 28, the Environment Court accepted Rotorua Lakes Council’s undertaking to pause work while it considered three applications filed in relation to the work.
An Environment Court hearing was on March 19 before Judge Laurie Newhook relating to three applications, filed by the Rotokākahi Board of Control and Rotokākahi Protection Incorporated, relating to the final section of Stage 1 of the Tarawera Sewerage Scheme.
Judge Newhook reserved his decision and indicated it would be released in coming weeks.
Homeowner's Manual - Pressure Sewerage System - (PDF, 1.8MB)
EcoFlow E-One - Alarm, Onsite System and Toilet Stickers - (PDF, 66KB)
Quick links
- Map showing pipeline installation progress - (JPG, 267KB)
- Graphic representation of the pipeline under-stream crossing - (JPG, 1.26MB)
- How close is the pipeline to Lake Rotokākahi? - (JPG, 1.46MB)
- Sewerage Scheme options - estimated costing summary - (JPG, 720KB)
- Public wastewater pipelines located within 25m of a lake shore graph - (JPG, 1.79MB)
- 2023 Archaeological survey and assessment - (PDF, 3MB)
- 2019 Cultural Impact Assessment - (PDF, 2MB)
- 2017 Cultural Impact Assessment - (PDF, 2.2MB)
