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.
LISTEN ABOVE

Mike's Minute: Moana Pasifika was a bust from the start
02:12

Mark the Week: How hard did the India FTA have to be?
02:36

Mike's Minute: My disappointment of the week
01:59