The Local Government Minister is pleased to see councils joining forces under the new water infrastructure model.

The Department of Internal Affairs expects councils to spend nearly 48-billion dollars on Local Water Done Well over the next decade.

The reforms could create more than 40 water entities, with some councils joining multi-council-controlled organisations.

Simon Watts told Mike Hosking that 38 councils have already combined to form 12 entities.

But he says it's never been about the number of entities - the critical part is whether it's financially sustainable.

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