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The new mayors of Auckland and Christchurch have teamed up to create a new Three Waters proposal.
The main difference is the regional water organisations would be owned and governed by councils, not a co-governance body.
Finance Minister and Deputy Prime Minister Grant Robertson explained his thoughts on the plan.
"From what I have read, it does sound like it might not quite reach what we need in terms of aggregation. They're talking about an opt-in situation, which might not mean that we get the heft into the entities that they need."
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