Recent public statements by Wellington Mayor Hon Andrew Little indicate that the Government is likely to establish a Crown Review Team to investigate the failure of the Moa Point wastewater treatment plant, which has resulted in the prolonged discharge of untreated sewage along Wellington’s south coast. This has emerged as the leading option rather than an originally signalled government (ministerial) inquiry.
Meanwhile today the Commerce Commission has announced that it is evaluating whether Tiaki Wai, Wellington's new water entity from 1 July, requires additional regulatory oversight.
In this alert, we outline what a Crown Review Team is, how it differs from a more formal government inquiry, what the Commerce Commission is considering and how all these developments could affect organisations involved in Wellington’s water infrastructure.
Emergence of a possible Crown Review Team
Following the flooding and shutdown of the Moa Point wastewater treatment plant in early February 2026, Mayor Andrew Little has publicly stated that the scale of the failure and the number of parties involved meet the threshold for either a Crown Review Team or government inquiry. He has emphasised the need for an investigation that is independent, has appropriate expertise, and has effective documentation and information gathering powers even if a party doesn't want to provide it.
While a government inquiry under the Inquiries Act 2013 emerged as an early option, recent comments indicate a Crown Review Team under the Local Government Act 2002 is now more likely.
This week the Mayor has said that his request for an independent investigation has been broadly well received at a ministerial level, and that he has provided Ministers with draft terms of reference for a potential Crown Review Team.
What does the Commerce Commission's announcement change?
Today, Commerce Commission Chair Dr John Small announced that the Commission is considering whether Tiaki Wai needs stronger rules, beyond the current and planned reporting requirements. Tiaki Wai will take over the delivery of water services in the Wellington region from 1 July this year. It will be impacted by insights from any investigation into the Moa Point failure.
Until it ceases operations, Wellington Water must disclose key economic information to the Commission under the Local Government (Water Services Preliminary Arrangements) Act 2024 through foundational information disclosure, with the objective of helping stakeholders understand whether they are getting value for money. In this time, one of the Commission's observations has been a "trend of increasing reactive maintenance costs across the network".
The key development today is that the Commission is now considering whether to require additional, targeted information disclosure requirements for Tiaki Wai.
What is a Crown Review Team?
A Crown Review Team is a statutory ministerial body appointed under the Local Government Act 2002 to investigate and report on a significant problem relating to a local authority or, in the water services context, a water organisation. One reason the Minister may appoint a Crown Review Team is where the local authority has requested the appointment, enabling an independent review to be undertaken under Minister‑approved terms of reference. Notice of the Review Team must be given to the affected organisation and published in the Gazette. The Review Team reports to both the Minister and the affected organisation and produces a final public report, which may include recommendations for remedial action or for further ministerial intervention if the problem has not been adequately addressed.
Contrast with a government inquiry
A government inquiry is one of three types of statutory inquiry provided for under the Inquiries Act 2013 and has the same legal powers as public inquiries and Royal commissions. Government inquiries are commonly used to investigate infrastructure failures, emergency responses and systemic regulatory issues. They operate with a high degree of institutional formality and independence, and have strong statutory powers to obtain information, test contested facts and make formal findings of fault where appropriate.
Government inquiries are typically more formal, resource‑intensive and longer‑running, and produce insights into what systemic or regulatory change might be required beyond the immediate organisations involved.
Advantages of a Crown Review Team
Crown Review Teams are designed as a targeted and flexible intervention tool within the local government legislative framework. They can generally be established more quickly and with less procedural formality than a government inquiry, while still providing independent scrutiny. The Act expressly enables the Review Team to obtain information and documentation from the local authority, and requires cooperation with reasonable requests, allowing the Minister to secure a clear evidential picture without immediately escalating to stronger intervention options.
What to expect next and why this matters
The Moa Point failure has been highly consequential to public health and the environment and involves multiple public and private actors with overlapping responsibilities. Once any investigation is announced, affected organisations should expect intensive scrutiny of decision‑making, information availability and accountability.
For councils, water service providers, contractors and governance bodies, any investigation will likely be time-consuming and reputationally significant. Early consideration of document preservation, governance processes and engagement strategy is often critical. The outcomes will shape both remediation of the immediate failure and inform longer-term reform as Wellington's water service delivery shifts to Tiaki Wai, which might now be subject to stronger regulatory measures.
If you have any questions about what the potential investigation or the Commission's announcement means for you, please get in touch with one of our experts below.