A group of ratepayers on the scheme said this week the community was divided and "in a state of turmoil" over the proposal.
They wanted the council to delay a binding referendum on the sale, planned for next month.
The race supplies stock and irrigation water to about 30 properties.
Earlier this year, the Otekaieke Water Company Ltd, a private company made up of farmers, approached the council to buy the 10km race, its Otekaieke River intake intake and reticulation.
The council said it would sell it, providing a majority supported the sale in a referendum financed by the company.
However, since then there had been growing concern in the community about the proposal, a lack of information about how the company would develop and run the race and having all electors living in the water race district able to vote instead of just ratepayers.
Council chief executive Michael Ross said a meeting had been called for Wednesday evening in the Otekaieke Hall to hear concerns and answer ratepayers' questions.
Council staff, the Otekaieke water scheme committee and water company representatives would attend.
In the meantime, anyone who owned a property or lived in the water race rating area was eligible to vote in the referendum.
The electoral roll to be used for the referendum closes on Friday.
The referendum is the first step.
If a majority votes in favour of the company buying the water race, eight further conditions have to be met before any sale could take place.
Some of these included the company having a satisfactory management plan, the company meeting all the costs and an opinion from the Medical Officer of Health and complying with legal requirements.
