Thursday 30 July 2026
A proposed public transport service connecting Wānaka, Albert Town, Three Parks and Lake Hāwea has moved a step closer, with the Otago Regional Council (ORC) responding to community interest and endorsing the business case to progress a trial bus service.
The business case recommends an introductory "skeleton" bus service operating eight trips a day, seven days a week, as the best value-for-money option for establishing public transport in the Upper Clutha.
ORC Transport portfolio co-lead, Councillor Matt Hollyer, says the business case is an important milestone in planning for one of New Zealand's fastest-growing communities, but the proposed service will still need to be considered by Upper Clutha residents during the Long-Term Plan process and would be dependent on government co-funding.
“The Upper Clutha has experienced significant growth over the past decade, with more people living, working and travelling around the district than ever before. This business case demonstrates there is a strong strategic rationale for introducing public transport and provides a practical pathway for making that happen."
The Upper Clutha population has more than doubled since 2012 and is projected to exceed 38,000 residents by 2055. Despite this growth, the area currently has no public transport service, leaving most people reliant on private vehicles.
"Public transport gives people greater choice in how they travel, whether that's to work, school, appointments, shopping or recreation. It can improve access for young people, older residents, people with disabilities and those without access to a car, while also helping users save money, reduce congestion and transport emissions over time," Cr Hollyer says.
“The recommended service was selected following an assessment of multiple options and provides the best balance between affordability, value for money and the ability to expand as demand grows.”
The estimated operating cost is approximately $1.07 million per year, with a further $100,000 required for implementation in the first year. The business case indicates the service would deliver positive economic benefits, with value expected to increase as population growth and patronage continue.
Endorsement of the business case does not mean the service has been approved to begin operating.
“The proposed two-year trial would be considered through ORC’s 2027–30 Long-Term Plan consultation in March-April next year. There is a cost and a benefit of such a service so what the community tells us will influence whether the trial service should commence and how best to fund it.”
Wānaka Upper Clutha Community Board Chair Simon Telfer says a public transport service would make a huge difference, particularly to those that live in Hāwea.
“It provides equity to those who are unable to or choose not to drive. It increases efficiency on our roading network and will ease congestion at key pinch points like the Albert Town bridge. Cost of living pressures are acute, and these can be addressed by public transport. Environmentally it makes perfect sense. And for many people public transport plays an important part in social connectivity.”
The business case proposes that the local share of funding would be met through a targeted rate, covering 49% of operating costs, with the remaining 51% sought, but not guaranteed, through co-funding from NZ Transport Agency Waka Kotahi’s 2027–30 National Land Transport Programme.
If funding is secured through both processes, the two-year trial service could begin in early 2028.
Background
Proposed Wānaka and Upper Clutha public transport trials have been identified in Otago’s Regional Public Transport Plans since 2021. Following public consultation, ORC reinstated funding for a business case in the 2025/26 Annual Plan to investigate public transport options for the Upper Clutha. It builds on previous work, including the Wānaka Network Optimisation Business Case commissioned by Queenstown Lakes District Council and community-led Wānaka shuttle trials delivered in 2022 and 2023. Introducing public transport has also been identified as a priority by the Wānaka-Upper Clutha Community Board.