There are two separate management entities comprised in the Pauanui waterways development. Pauanui Waterways Management Company Ltd (PWMCL) being the shareholder company comprising stages 1 & 2 properties and Pauanui Canals Management Ltd (PCML) being the management company for stage 3 properties. This has come about by a need to secure a more enduring tenure caused by changes to the Foreshore and Seabed Act 2004 affecting stages 1 & 2 where the declamation transferred the canals from Thames Coromandel District Council to the Crown.

Various regulatory changes have further transferred the canals and it seems yet more transfers are likely as the coastal marine area remains a highly political area noting recent challenges for Customary Marine Title.

Stage 1 and 2 property owners are shareholders of PWCML under the projects initial consent structure. The canals comprising Stages 1 & 2 vested in the Thames Coromandel District Council (TCDC) as Reserves – Canal. Tenure to mooring envelopes was secured under the Councils Reserves Management Plan. A plan of the mooring envelope associated with each adjoining property is comprised in that Plan. Custodianship of the coastal marine area has transferred between District Council, Regional Council (WRC), and Crown entities. The current regulator for activities impacting coastal marine waters is Waikato Regional Council while the consented tenure is retained over Canal Reserves inherent in TCDC’s Reserves Management Plan consistent with the original resource consents (RC).

In order to avoid uncertainty around any future regulatory changes the developer pursued an alternate approach to stage 3 of the development. With general agreement between counsel for WRC, TCDC, Crown and Iwi entities, RC’s was sought to develop and transfer canals to a new company (PCML) where private title was retained to the seabed. Easements have been established over the stage 3 canals for the installation of jetties and mooring of vessels. An easement in gross in favour of TCDC allows public right of access throughout the central part of canals.

PWMCL is a taxable entity and incurs management difficulty in avoiding unintended taxation whereas PCML holds charitable status enabling flexible financial management without the risk of incurring taxation. Consequently, the Directors of PWMCL resolved to delegate their management responsibilities to PCML who are now charged with the management of all canals. Standard management obligations, practices, canal rules and levy basis are applied consistently across all stages. PWMCL has an annual return but is not undertaking works directly.

Provided the canals continue to be managed by retaining a clean, orderly, safe and compliant environment no regulatory interference is anticipated.

The Directors of each company are the same and are intended to remain so. All canal maintenance and management matters throughout the waterways are transacted consistent with the management instruments applicable to PCML. The Directors have introduced various policy changes are largely designed to address the equitable allocation of costs.