• This option is financially challenging due to new financial sustainability requirements set by the Local Water Done Well requirements.

• Under this model, Central Hawke’s Bay District Council would continue to manage and deliver water services, but with additional regulations.

• This is referred to as the 'new status quo' because of the various additional requirements to meet Government standards.

• The legislation requires councils to 'ringfence' all money collected and spent on water services similar to what Council does now, but with a further level of separation, ensuring the community understands the true cost of their water services.

• This separation of water-related revenue and costs from other council services would significantly increase the cost to the community for water.

• Maintaining an in-house delivery model would limit the council's borrowing capacity for water projects, impacting other council services also.

• Despite the limited borrowing cap, council would need to keep investing in water projects, leading to higher water rates than under the Regional CCO option. This could also affect the council's ability to maintain and invest in other areas such as transport, rubbish, recycling, housing, parks, and libraries.

• In the short term, continuing to deliver water services in-house may seem affordable because the council wouldn't need to factor in transition costs for a new water services organisation. However, it would place significant pressure on other council services and may affect service levels in the medium to long term