The Queenstown water and wastewater schemes will be extended to an extra 40 properties along Tucker Beach Rd at the owners' expense.
The infrastructure services committee made the resolutions on Tuesday when members heard two additional properties wanted the water connection.
The committee extended the boundary of the schemes to cover a lot on the road in May.
The utilities committee approved coverage of 17 lots in December 2007.
Committee members discussed whether the council should consider extending the schemes to a wider area, instead of hearing individual applications at every infrastructure services meeting. However, chairman Lyal Cocks said: "Where do we stop?"
Three Waters manager Gerry Essenberg said every property would need to buy infrastructure to link to the schemes if the Tucker Beach Rd area was subdivided further. There would not be a requirement for extra pumps.
Cr Jude Battson asked whether residents would be given the option of connection to the schemes and said they would need to know the preferred conditions and the cost.
Mr Essenberg said ratepayers would be told by letter they were in the zone. They would be invited to apply to Lakes Environmental and advised of infrastructure requirements and cost.
The council could require ratepayers to connect if properties were within 30m of the service.
Mr Cocks asked whether a policy was needed on extending water schemes, as the issue was raised during the proposed Arrowtown boundary plan changes. However, the infrastructure services committee could not direct strategy, he said.
Cr John Mann asked what the policy was for Threepwood, the gated subdivision beside Lake Hayes.
Policy and planning general manager Philip Pannett said the full council could direct the strategy and he assumed Threepwood's developer handled the water schemes.
Capital works manager Ken Gousmett said there was an issue of equanimity, with some properties connected on one side of Tucker Beach Rd and not connected on the other.
Mr Gousmett said the council could expect more water connection requests in the future, but the two applications needed a decision from the committee.
Cr Trevor Tattersfield said approval had to be given, as the committee approved the earlier application in May.
Mr Cocks said the committee needed a council decision on the larger issue, but leaned towards amending the tabled recommendation. The motion was carried unanimously.
