The Local Government Minister is pleased to see councils joining forces under the new water infrastructure model.
The Department of Internal Affairs expects councils to spend nearly 48-billion dollars on Local Water Done Well over the next decade.
The reforms could create more than 40 water entities, with some councils joining multi-council-controlled organisations.
Simon Watts told Mike Hosking that 38 councils have already combined to form 12 entities.
But he says it's never been about the number of entities - the critical part is whether it's financially sustainable.
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The Mike Hosking Breakfast