Councillors at a full meeting in Alexandra predicted an influx of applications from private water schemes requesting the council take them over when it became clear they would be required to meet similar standards to council-operated schemes.
A report with a list of recommendations put to the council was revised and revised again as councillors grappled with what the Bill would mean for it.
The report was to consider the allocation of costs, and funding sources to upgrade private supplies that apply to transfer ownership and management to the council.
The Water Services Bill places increased requirements on private suppliers to meet similar standards of management, monitoring and reporting, and quality of water supplied as councils, and carries financial penalties for failure to meet the legislated requirements.
The proposal would require councils to provide support to private supplies, or alternatively, take them over if they were unable to meet the required standards.
Central Otago District Council (CODC) executive manager infrastructure services Julie Muir said the report came about because of a request to the council to take over management and operation of the Ripponvale Community Water Scheme.
The council had received two subsequent requests from other schemes, she said.
The question for councillors was the options and costs associated with transferring these private water supplies to the council, or for them to gain access to Government water stimulus funding to undertake upgrades.
Cr Stephen Jeffery said the stimulus funding was available which could give schemes that applied now an advantage over those that applied later.
Ms Muir said under tranche one of the funding, only Ripponvale had applied and it was unclear if further funding would be made available.
Cr Tracy Paterson said she predicted a "massive backlash" from the community and many people would be unaware of the policy and what it meant.
"There’s going to be significant pushback."
Cr Martin McPherson agreed and said people would fail to see the difference between implementing Government versus council policies.
"The community is going to think this is a council thing."
Cr Neil Gillespie said people on private schemes needed to be mindful of the policy but that was the limit of council responsibility at this point.
CODC chief executive Sanchia Jacobs said the council was the "recipient" of the policy and how to implement it was not yet clear.
"This is all a bit cart before horse."
Central Otago Mayor Tim Cadogan said the council needed to be prepared for an influx and the report and the discussion was to do this.
"We’re not opening the door, we’re just getting people to line up outside it."
There are 27 private water supplies in the Central Otago district on the New Zealand Drinking Water Register and many others which are not registered.
