The election campaign had brought a continuation of people arguing around the edges of a serious subject, Clutha District Mayor Bryan Cadogan said.
He was worried the next government might load costs of required upgrades on to vulnerable urban families and pensioners.
"We’re dealing with an issue that will obliterate people’s financial viability.
"And we still don’t know where this is going."
Southland District Mayor Rob Scott said the next government would need to be realistic and open-minded about solutions amid rising costs.
The district’s management of water was "not broken", but infrastructure bills loomed.
The National Party’s water programme has been under scrutiny because it appeared little would prevent ratepayers facing substantial rates rises.
However, Labour’s contention National had promised to step in to help councils where needed and then made "no provision" fiscally to do so was at odds with National’s policy statement that said $1 billion would be retained for such a purpose.
Campaign chairman Chris Bishop referred to an $8b capital allowance that could help meet cost pressures.
"Funding will be allocated to councils on a needs basis, but only when other options — like accessing long-term borrowing — have been exhausted," National’s policy said.
Central Otago District Mayor Tim Cadogan suggested demand might be strong.
"I would expect the queue for government assistance to quickly overwhelm the ability of the government to assist."
Labour has argued New Zealanders could face a $185b bill for water infrastructure in the next 30 years and economies of scale were needed to generate savings.
However, its reform programme, which includes setting up water entities to take over functions from councils, has not been popular.
National’s alternative programme could result in some regional council-controlled organisations being set up if councils wanted them.
Tim Cadogan said he was "personally not attracted" to this and "getting the safety of drinking water and protection of the environment from human wastewater ... into the hands of professional boards" might be better.
"There is no easy solution to the infrastructure debt created by lack of regulatory enforcement prior to November 2022, lack of investment by many councils, climate change and differing environmental expectations into the future."
Dunedin city councillor Jim O’Malley said a council-controlled organisation was not necessary, but he had touted for an Otago-Southland water co-operative based on population.
He expected about 20 of 67 councils in New Zealand would be "in such bad shape that government intervention will be required" — the Clutha and Gore districts came to mind for him.
"Most of these councils are in trouble because they have favoured low rates and carry no debt.
"But these are mostly small rural councils and the bill for each will also be relatively small."
About 30 more councils might be "somewhat able to meet the challenge".
"The cities of Invercargill and Dunedin are both able to meet their new water standards, largely because we were meeting the old standards already."
Invercargill Mayor Nobby Clark said the city did not need much help, although help would be required to boost resilience by creating an alternative water supply.
Queenstown has been dealing with a Cryptosporidium outbreak, which has brought renewed focus to the state of New Zealand’s water infrastructure.
Queenstown Lakes District Mayor Glyn Lewers has said he was sick of uncertainty about Three Waters reform.
