Yes it’s certainly costed out by the councils. It’d vary for each council in the region but (for example) WCC shows 13.46% of rates going into water, not including wastewater and stormwater which are costed separately. I think there would be an outcry if people had to pay for meter costs without rates dropping proportionately. It’s probably not entirely clear though, because some of the current rates allocation could be for certain overheads that it mightn’t be sensible for meters to cover. Also costs are just generally rising for everything, so even if the cost of water is removed from rates, it mightn’t feel as if it has been for most people who pay them.

Personally I’d be mildly concerned for renters. I think it’s highly likely that many landlords would simply pocket any rates reduction while their tenants get a new bill to pay, assuming meters are used for billing rather than just measuring or only billing for excessive use (which is also an option). That said I don’t think a broken rental market, which needs to be fixed in other ways, is a good enough reason to hold off addressing fundamental problems with the water system.

As far as paying less for water, though, that’s what supposedly happened in Kapiti when they went through the change a decade ago:

In Kāpiti the installation of water meters had an immediate impact on water usage, with the discovery of 443 leaks initially and more over the years. Fixing these leaks means millions of litres of water are no longer being wasted.

Reduced household water use has also decreased substantially, with a sharp drop as soon as the 23,000 meters were introduced, a reduction which has been maintained overtime.

High water users have reduced their consumption by 70%. Many of these were our keen gardeners, so it’s great to see we still have healthy green gardens in the district.