Councillors decided in May they should not set up a water company and Three Waters services should instead remain in-house at the council.
The council had to submit a 10-year plan to the government by September 3 outlining how drinking water, wastewater and stormwater services would be provided cost-effectively and showing that planned investment would be sufficient.
The Secretary for Local Government signed off on this plan, the council said yesterday.
An ambitious capital expenditure programme would be delivered, a debt repayment policy developed and there would be better monitoring of asset risk, the plan said.
The council forecasted water services capital spending of almost $1.1 billion over the 10-year period.
A household’s charges for water supply and drainage added up to $1556 in 2025-26 and were projected to be $2782 in 2033-34.
At the time of public consultation earlier this year, the council was clear residents could expect significantly more expensive water bills regardless of which option was favoured, mainly because of the need to continue to upgrade infrastructure and meet regulatory obligations.
About two-thirds of people who made submissions to the council favoured the in-house model.
The council voted unanimously to keep services in-house.
Dunedin Mayor Sophie Barker said yesterday she was pleased the plan had been accepted.
"The message from our community has been loud and clear — Dunedin residents want their water services kept local and managed by council," she said.
Council chief executive Sandy Graham said the plan reflected the council’s responsibility for water infrastructure.
"An in-house model will continue to make it easier to co-ordinate water services with other services provided by the DCC, while carefully managing debt levels over the next nine years," she said.
There would be a staged implementation plan to meet financial sustainability requirements.
The council had to show its plan would be financially sustainable by June 30, 2028.
There would be regular reporting to the Department of Internal Affairs about the plan’s implementation.
Starting in the 2026-27 financial year, providers of water services will need to publicly disclose detailed financial and asset management information on their websites.
This is intended to improve transparency for consumers.
The council noted rates were a key source of funding.
Dunedin signalled in its plan there would be continued engagement with the Christchurch City Council to confirm the extent of any shared service arrangements.
