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Why water meters are being introduced

Water metering is the single biggest efficiency saving IAWAI can make. Without metering, future water costs will be far higher for households because IAWAI would need to bring forward significant new infrastructure investment to meet demand.

To reduce future costs

Experience in other parts of New Zealand and internationally shows reductions of 20% or more in peak demand when metering is introduced. Reducing peak demand means Hamilton’s current treatment system and network can supply households for longer, helping defer significant future costs. Without demand management, around $780 million in new infrastructure may need to be brought forward. These are unbudgeted costs that would drive household water bills higher.

To use water more efficiently

There are limits on how much water we are allowed to take from the Waikato River. Hamilton households use around 50% more water per person than households in Tauranga. At current rates, Hamilton could reach the limits of its consent to take water within the next 10 years.

To protect the environment and our awa

Every litre we don’t take from our Waikato awa helps preserve its health and the life it supports. Every litre not taken from the Waikato awa helps preserve its health and the life it supports. It is also a litre that does not need to be treated for drinking water and treated again before being returned to the awa.

Water metering supports IAWAI’s legal obligations under Te Ture Whaimana o Te Awa o Waikato, the Vision and Strategy for the Waikato River.

What is Te Ture Whaimana o Te Awa o Waikato?

Te Ture Whaimana holds a vision for a future where a healthy Waikato River sustains abundant life and prosperous communities who, in turn, are all responsible for restoring and protecting the health and wellbeing of the Waikato River, and all it embraces, for generations to come.

To help identify leaks

Metering data helps identify potential private leaks earlier, reducing treated drinking water waste. A Hamilton East pilot of 200 households found that 19% had water leaks on private property, which allowed a combined 5.1 million litres of treated drinking water to be wasted every year.

To support fairer charging

Hamilton residents have historically paid for water through rates, based on property value. This means two households with a similar property value may pay a similar amount for water services, even if their water use is very different. Metering supports a future move from capital value-based charging to volumetric charging, which is a fairer user-pays approach and aligns with Government requirements.

When meters will be introduced

The meters will be installed across a four-year programme and will start after a further trial of more than 1000 properties across a larger area (a full water pressure zone). Older areas of the city which likely have more private leaks will be tackled first to get the most benefit from waste reduction. 

How much water meters will cost

The capital cost for the project across Hamilton is budgeted at $108.71 million, with an operating cost of $46.45 million.

As this is an entirely new system for Hamilton, the cost isn’t just for the meters themselves.

The budget includes:

  • building the initial network and management systems to support metering
  • purchase and installation costs of the meters
  • ongoing operation, billing and maintenance costs across 15 years

Board pack for IAWAI Board Meeting, June 2026