Local Government Act 2002

If you need more information about this Act, please contact the administering agency: Department of Internal Affairs

Version as at 20 November 2022

Coat of Arms of New Zealand

Local Government Act 2002

Public Act
2002 No 84
Date of assent
24 December 2002
see section 2

The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.

Note 4 at the end of this version provides a list of the amendments included in it.

This Act is administered by the Department of Internal Affairs.


4Treaty of Waitangi
5ATemporary definition of public notice as result of outbreak of COVID-19 [Repealed]
6Meaning of council-controlled organisation and council organisation
7Exempted organisations
8Act binds the Crown
8AProvisions affecting application of amendments to this Act
9Outline of Part
10Purpose of local government
11Role of local authority
11ACore services to be considered in performing role [Repealed]
12Status and powers
13Performance of functions under other enactments
14Principles relating to local authorities
15Triennial agreements
16Significant new activities proposed by regional council
17Transfer of responsibilities
17ADelivery of services
18Responsibilities, powers, and duties of Minister
20Outline of Part
21Local authorities
22Minister is territorial authority in certain cases
23Description of local government
24AAPurpose of local government reorganisation provisions
24Scope of local government reorganisation
24ATransitional modification or suspension of certain statutory requirements after issue of reorganisation plan
25Order in Council to give effect to reorganisation plan
25AOrder in Council to give effect to reorganisation implementation scheme
26Power to amend reorganisation plans and reorganisation implementation schemes
26ADuties of local authorities in relation to local government reorganisation
27Application to be called city council or district council
27AChange of name of unitary authorities
27BOrders in Council to be published in Gazette [Repealed]
28Local Government Commission
29Commission is body corporate with full powers
30Functions and powers of Commission
31Report to Minister on matters relating to local government
31AMinister’s expectations of Commission in relation to local government reorganisation
32Review of operation of Act and Local Electoral Act 2001
33Membership of Commission
34Additional powers of Commission
35Evidence before Commission
35AApplication of Official Information Act 1982
36Further provisions relating to Commission and its proceedings
37Appeals against decisions of Commission
38Outline of Part
39Governance principles
40Local governance statements
41Governing bodies
41ARole and powers of mayors
42Chief executive
43Certain members indemnified
44Report by Auditor-General on loss incurred by local authority
45Local authority to respond to Auditor-General
46Members of local authority liable for loss
47Members may be required to pay costs of proceeding in certain cases
48Further provisions of Schedule 7
48CPurpose of local boards
48DUnitary authority decision making shared between governing body and local boards
48EMembership of local boards
48FIndemnification and liability of local board members
48GStatus of local boards
48HFunctions, duties, and powers of local boards
48IGeneral scheme
48JDecision-making responsibilities of governing body
48KDecision-making responsibilities of local boards
48LPrinciples for allocation of decision-making responsibilities of unitary authority
48MLocal boards funding policy
48NLocal board plans
48OLocal board agreements
48PConsultation required on proposed content of local board agreement
48QApplication of Schedule 7 to local boards and their members
48RDisputes about allocation of decision-making responsibilities or proposed bylaws
48SLocal Government Commission to determine disputes
49Establishment of community boards
50Membership of community boards
51Status of community boards
52Role of community boards
53Powers of community boards
54Application of other provisions to community boards
54ARegister of members’ pecuniary interests
54BPurpose of register
54CMembers to make pecuniary interest returns
54DAccuracy of information included in pecuniary interest return
54EContents of pecuniary interest return relating to member’s position
54FContents of pecuniary interest return relating to member’s activities
54HResponsibility of members
54IDefinition of Registrar
55Outline of Part
56Consultation required before council-controlled organisation established
57Appointment of directors
58Role of directors of council-controlled organisations
59Principal objective of council-controlled organisation
60Decisions relating to operation of council-controlled organisations
60ASignificant decisions of council-controlled organisations affecting land or water
61Activities undertaken on behalf of local authorities
62Prohibition on guarantees, etc
63Restriction on lending to council-controlled trading organisation
64Statements of intent for council-controlled organisations
64AShareholders may require additional plans
64BStatement of expectations
65Performance monitoring
66Half-yearly or quarterly reports
67Annual report
67AExtension of time limit for 2019/20 financial year annual reports: COVID-19 [Repealed]
68Content of reports on operations of council-controlled organisations
69Financial statements and auditor’s report
70Auditor-General is auditor of council-controlled organisations
71Protection from disclosure of sensitive information
71AApplication of Part to listed companies
72Application of Act to related companies
73Transfer of undertakings to council-controlled organisations
74Official information
75Outline of Part
76AASignificance and engagement policy
77Requirements in relation to decisions
78Community views in relation to decisions
79Compliance with procedures in relation to decisions
80Identification of inconsistent decisions
81Contributions to decision-making processes by Māori
82Principles of consultation
82AInformation requirements for consultation required under this Act
83Special consultative procedure
83AASummary of information
83ACombined or concurrent consultation
83BUse of special consultative procedure during outbreak of COVID-19 [Repealed]
83CLong-term plan commencing on 1 July 2021 [Repealed]
83DRepeal of sections 83B and 83C and this section [Repealed]
84Special consultative procedure in relation to long-term plan [Repealed]
85Use of special consultative procedure in relation to annual plan [Repealed]
86Use of special consultative procedure in relation to making, amending, or revoking bylaws
87Other use of special consultative procedure
88Use of special consultative procedure in relation to change of mode of delivery of significant activity [Repealed]
89Summary of information [Repealed]
90Policy on significance [Repealed]
91Process for identifying community outcomes [Repealed]
92Obligation to report against community outcomes [Repealed]
93Long-term plan
93AUse of special consultative procedure in relation to long-term plan
93BPurpose of consultation document for long-term plan
93CContent of consultation document for adoption of long-term plan
93DContent of consultation document for amendment of long-term plan
93DAAmendments to long-term plan during outbreak of COVID-19 [Repealed]
93EAdditional content of consultation document for adoption or amendment of long-term plan where section 97 applies to proposed decision
93FForm and manner of presentation of consultation document
93GInformation to be adopted by local authority in relation to long-term plan and consultation document
94Audit of long-term plan
94ALong-term plan amended during outbreak of COVID-19 [Repealed]
95Annual plan
95APurpose and content of consultation document for annual plan
95BCombined or concurrent consultation on long-term plan and annual plan
96Effect of resolution adopting long-term plan or annual plan
97Certain decisions to be taken only if provided for in long-term plan
98Annual report
98AExtension of time limit for 2019/20 financial year annual reports: COVID-19 [Repealed]
99Audit of information in annual report and summary
99APre-election report
100Balanced budget requirement
101Financial management
101AFinancial strategy
101BInfrastructure strategy
102Funding and financial policies
103Revenue and financing policy
104Liability management policy
105Investment policy
106Policy on development contributions or financial contributions
107Policy on partnerships with private sector [Repealed]
108Policy on remission and postponement of rates on Māori freehold land
109Rates remission policy
110Rates postponement policy
111Information to be prepared in accordance with generally accepted accounting practice
113Prohibition on borrowing in foreign currency
114Constraints on receiver
115Rates as security
116Register of charges maintained by local authority
117Protected transactions
118Certificate of compliance
119Good faith in relation to protected transactions
120Saving provision in respect of power of court
121The Crown not liable for debts
122Disclosure document and loan documents to contain statement that the Crown does not guarantee financial products or loan
123Outline of Part
125Requirement to assess drinking water services
126Requirements following assessment of community drinking water service
127Duty to ensure communities have access to drinking water if existing suppliers facing significant problems
127Information required in assessment of sanitary services [Repealed]
128Requirement to assess wastewater and other sanitary services
128Process for making assessments [Repealed]
129Extent of information in assessments [Repealed]
130Obligation to maintain water services
131Power to close down or transfer small water services
132Eligibility to vote in referendum
133Responsibility for conduct of referendum
134Criteria for closure of water service
135Criteria for transfer of water service
136Contracts relating to provision of water services
137Joint local government arrangements and joint arrangements with other entities
138Restriction on disposal of parks (by sale or otherwise)
139Protection of regional parks
139AFurther provision in relation to regional parks
140Restrictions on disposal of endowment property
141Conditions applying to sale or exchange of endowment property
142Obligation to provide free membership of libraries
143Outline of Part
144Bylaws Act 1910
145General bylaw-making power for territorial authorities
146Specific bylaw-making powers of territorial authorities
147Power to make bylaws for alcohol control purposes
147ACriteria for making or continuing bylaws
147BCriteria for making resolutions relating to bylaws
147CSignage for areas in which bylaws for alcohol control purposes apply
148Special requirements for bylaws relating to trade wastes
149Power of regional councils to make bylaws
150Fees may be prescribed by bylaw
150ACosts of development contribution objections
150BLocal boards may propose bylaw
150CLocal board must consult on proposed bylaw
150DLocal board may propose amendment to bylaw
150ELocal board may propose revocation of bylaw
150FJoint bylaw proposals
151General provisions applying to bylaws made under this Act
152Effect of Building Act 2004 on bylaws
152AEffect of Food Act 2014 on bylaws
152BEffect of Fire and Emergency New Zealand Act 2017 on bylaws
153The Crown bound by certain bylaws
154Power of exemption
155Determination whether bylaw made under this Act is appropriate
156Consultation requirements when making, amending, or revoking bylaws made under this Act
157Public notice of bylaws and availability of copies
158Review of bylaws made under this Act or the Local Government Act 1974
159Further reviews of bylaws every 10 years
160Procedure for and nature of review
160ABylaw not reviewed within specified time frame revoked
160BBylaw revocation postponed as result of outbreak of COVID-19 [Repealed]
161Transfer of bylaw-making power
161AWhat is local authority legislation
161BInstruments that have significant legislative effect
161COther supporting definitions
162Injunctions restraining commission of offences and breaches of bylaws
163Removal of works in breach of bylaws
164Seizure of property not on private land
165Seizure of property from private land
166Conditions for exercise of warrant to seize property on private land
167Return of property seized and impounded
168Power to dispose of property seized and impounded
169Powers of arrest, search, and seizure in relation to alcohol bans
169AProving substance is alcohol in relation to alleged breach of alcohol ban
170Conditions relating to power of search
171General power of entry
172Power of entry for enforcement purposes
173Power of entry in cases of emergency
174Authority to act
175Power to recover for damage by wilful or negligent behaviour
176Costs of remedying damage arising from breach of bylaw
177Appointment of enforcement officer
178Enforcement officers may require certain information
179Contracting out administration of enforcement
180Enforcement and administration of regional council bylaws
181Construction of works on private land
182Power of entry to check utility services
183Removal of fire hazards [Repealed]
184Rights and obligations if notice given under section 183(1) [Repealed]
185Occupier may act if owner of premises makes default
186Local authority may execute works if owner or occupier defaults
187Recovery of cost of works by local authority
188Liability for payments in respect of private land
189Power to acquire land
190Compensation payable by local authority for land taken or injuriously affected
191Local authority not authorised to create nuisance
192Wastage of water
193Power to restrict water supply
194Power to stop water services [Repealed]
195Discharge of sewage
196Discharge of trade wastes
197AAPurpose of development contributions
197ABDevelopment contributions principles
198Power to require contributions for developments
198ARestrictions on power to require contributions for reserves [Repealed]
199Basis on which development contributions may be required
199ARight to reconsideration of requirement for development contribution
199BTerritorial authority to notify outcome of reconsideration
199CRight to object to assessed amount of development contribution
199DScope of development contribution objections
199EProcedure for development contribution objections
199FAppointment and register of development contributions commissioners
199GRemoval of development contributions commissioners
199HWho may decide development contribution objections
199IDevelopment contribution objection hearings
199JConsideration of development contribution objection
199KAdditional powers of development contributions commissioners
199LLiability of development contributions commissioners
199MResidual powers of territorial authority relating to development contribution objection decision
199NObjector’s right to apply for judicial review unaffected
199OTerritorial authority to provide administrative support for development contributions commissioners
199PInterim effect of development contribution objection
200Limitations applying to requirement for development contribution
201Contents of development contributions policy
201ASchedule of assets for which development contributions will be used
202Contents of section 201 schedule
202AReconsideration process to be in development contributions policy
203Maximum development contributions not to be exceeded
204Use of development contributions by territorial authority
205Use of development contributions for reserves
206Alternative uses of development contributions for reserves
207Power to use money collected and held under Local Government Act 1974 or Resource Management Act 1991
207ARequest to enter development agreement
207BResponse to request for development agreement
207CContent of development agreement
207DEffect of development agreement
207ERestrictions on use of development agreement
207FAmendment or termination of development agreement
208Powers of territorial authority if development contributions not paid or made
209Refund of money and return of land if development does not proceed
210Refund of money or return of land if not applied to specified reserve purposes
211Application of other Acts
213Application of District Court Rules to removal orders
214Scope of rules made under section 213
215Application for removal order
216Circumstances when court may make removal order
217Right of objection
218Consideration of objections
219Appeal to High Court final
220Compliance with removal order
221Limits to power of entry to enforce compliance
222Provisions of Resource Management Act 1991 and Building Act 2004 continue to apply
223Relationship with Fencing Act 1978
224Offence relating to water wastage
225Offences relating to waterworks
226Liability for cost of damage
227Offences relating to water meters
228Offences relating to water races
229Obstruction of enforcement officers or agents of local authority
230Offences by occupiers
231Offences in relation to notices sent to occupiers or owners
232Damage to local authority works or property
233Offence relating to advertising
234Unauthorised use of coat of arms
235Offences by members of local authorities and local boards
236Penalty for acting without warrant
237Offence by member or officer of Remuneration Authority
238Offence of failing to comply with Act
239Offences in respect of breaches of bylaws (other than alcohol bans)
239ABreaches of alcohol bans
240Defence to offences under this Act
241Time for filing charging document
242Penalties for offences
244Proceedings for infringement offences
245Issue of infringement notices
245AConstables may require certain information
246Entitlement to infringement fees
247Proceedings in District Court
248Judges not disqualified for being ratepayers
249Representation of local authority in proceedings
250Service of legal proceedings on local authority
251Evidence of ownership, vesting, or control
252Recovery of debts
253Outline of Part
254How this Part works
255Application of this Part
257Minister may require information
258Minister may appoint Crown Review Team
258AHow Crown Review Team appointed
258BMinister may appoint Crown Observer
258CHow Crown Observer appointed
258DMinister may appoint Crown Manager
258EHow Crown Manager appointed
258FMinister may appoint Commission
258GHow Commission appointed
258HApplication of this and other enactments during Commission’s term of appointment
258IMinister may postpone general election when appointing Commission
258JTiming of election following postponed election
258KLocal authority members remain in office but must not act during term of Commission
258LExtraordinary vacancy when Commission appointed or during term of Commission
258MMinister may call general election
258NMinister may consult any person
258OMinister must publish list in Gazette
258PMinister must have regard to published list
258QNotice to local authority of proposed appointment of Ministerial body
258RNotice to local authority of proposed general election
258SNotification of appointment of Ministerial body
258TNotification of change of membership of Ministerial body
258UFinal report of Ministerial body
258VRemuneration and expenses of Ministerial appointees
258WRecovery of expenses from local authority
258XMinister may terminate Ministerial body or Ministerial appointee
258YProtection from liability for Ministerial appointees
258ZDisclosure of information held by local authority
258ZADecisions and directions of Crown Manager or Commission remain in force until local authority decides otherwise
259ALevy to fund rules for performance measures
259BPower to refund levy
259CAuditor-General must report on disclosures made under certain regulations
259DRegulations may incorporate financial reporting standards by reference
259EEffect of amendments to, or replacement of, standards incorporated by reference in regulations
259FProof of standards incorporated by reference
259GEffect of expiry or revocation of standards incorporated by reference
259HAccess to standards incorporated by reference
259IApplication of Legislation Act 2019 to standards incorporated by reference
259JApplication of Regulations (Disallowance) Act 1989 to standards incorporated by reference [Repealed]
260Amendment of Schedule 2 by Order in Council
261Circumstances when Order in Council may extend time or validate action taken
261APurpose of rules specifying performance measures
261BSecretary must make rules specifying performance measures
261CStatus of rules [Repealed]
261DIncorporation of documents by reference in rules
261EProof of material incorporated by reference
261FEffect of change to, or expiry of, material incorporated by reference
261GConsultation on proposal to incorporate material by reference
261HAccess to material incorporated by reference
261ISecretary may make rules establishing requirements of form
262Consequential amendments
263Water services
264Amendment to Personal Property Securities Act 1999
265New Schedule added to Receiverships Act 1993
267Repeal of enactments relating to special consultative procedure
268Repeal of Local Government (Prohibition of Liquor in Public Places) Amendment Act 2001
269Repeal of spent local Acts
270Repeal of provisions relating to regional parks of Wellington Regional Council
271Lake Taupo Regulations 1976
273First triennial agreement
274First local governance statement
275First policy on appointment of directors
276First statement of intent and report and accounts of existing local authority trading enterprises
277First statement of intent of other council-controlled organisations
278First policy on significance
279Long-term council community plan [Repealed]
280Long-term plan for period beginning on 1 July 2006
281Annual plan [Repealed]
282Certain decisions to be taken only if provided for in annual plan or special consultative procedure used [Repealed]
283Annual reports
284First annual plan
285First assessment of water and sanitary services
286Waste management plan
287Special consultative procedure
288Decision-making processes commenced before enactment [Repealed]
289Special orders
289ASpecial orders on or after 1 July 2003
290Development contributions
291Reorganisation proposals
292Existing charges
294Standing orders
295Communities and community boards
296Chief executive
297Members of Commission
298Community trusts
299Borrowing from sinking fund
300Cancellation of part of loan in respect of which sinking fund is held
301Consent required for release of sinking fund
302Provisions relating to Public Trust and Board of Trustees of National Provident Fund
303Public Bodies Leases Act 1969
304Sale of land purchased for commercial or industrial purposes
305Local Authorities (Employment Protection) Act 1963
306Local Authorities Loans Act 1956
307Existing proceedings
308Existing causes of action
310Saving in respect of bylaws of Transit New Zealand
311Savings in respect of bylaws made in respect of government roads
312Savings and validation in respect of remuneration, allowances, and expenses of elected members
313Saving in respect of Infrastructure Auckland [Repealed]
314Prohibition of vehicles and consumption or possession of intoxicating liquor in public place