The State Government has signed a memorandum of understanding with Local Governments and TasWater and have agreed to invest $200 million into the utility and become a shareholder.
The Government will not receive a dividend but will have a say in decision-making and the appointment of the chief executive officer and board.
Under the agreement, Local Government would retain majority ownership of TasWater and new governance arrangements would ensure that State and Local Government will work together with TasWater’s board to deliver the capital program.
A majority of the 29 local councils will need to agree to the arrangement and legislation will need to go through Parliament for it to come into effect.
The earliest these changes could occur is 1 January 2019.