Three Waters is now a thing of the past, we now have the Affordable Water Reforms.

The Government has made major changes to the controversial scheme, including ditching the four mega-organisations that would have delivered freshwater, wastewater and stormwater services.

Prime Minister Chris Hipkins says they'll be instead establish 10 regionally led, local water entities.

He says they believe this strikes the right balance between cost savings in the delivery of water infrastructure, while also ensuring the entities are strongly grounded in local communities.

National Leader Chris Luxon told Kerre Woodham he sees three issues with what's been announced.

"Just changing the name and the branding because he didn't like it isn't great, the second thing is we've just gone from four co-governed mega-entities to ten co-governed mega-entities and that doesn't make a lot of sense and the divisive co-governance structures are still in place."

LISTEN ABOVE