Clutha District Mayor Bryan Cadogan said he sympathised with Queenstown, and a combination of historic underinvestment and increasing regulatory demands meant more people in New Zealand could be forced to boil their water.
As of yesterday, there were 40 confirmed cases of Cryptosporidium (crypto), 10 probable cases, and eight under investigation.
A boil water notice has been placed on much of the Queenstown township.
Mr Cadogan said the situation showed why Three Waters reform was so needed.
"We will never solve the issues of Three Waters until three-year politicians stop believing they are the best suited to oversee 80-year infrastructure," he said.
However, he believed the government’s original structure which had one entity covering most of the South Island would have delivered better results.
The new 10-entity model, which separated Otago and Southland from Canterbury, meant a loss of critical mass.
"You’re left with sparsely populated, remote communities from a Three Waters infrastructure perspective that do not have the synergies.
Queenstown Lakes District Mayor Glyn Lewers said he was sick of the uncertainty about Three Waters reform, and worried about the demands it would place on councils.
He was asked whether councils should continue to have control of water in the wake of the outbreak.
"There’s a definite choice you have come October 14. You have two differing water policies from the two major parties," he said.
"Whatever happens, investment has to be made.
"The uncertainty has to stop. Every council is working in this uncertain time."
Mr Lewers said the council had a long-term plan in place for the reform occurring by the present government, but "you would be foolish not to plan for a change in government".
"That’s doubling the workload, and increasing the uncertainty in Three Waters investment," he said.
Mr Lewers said if Three Waters stayed without reform, then Queenstown Lakes District Council (QLDC) would be looking at gross debt levels of about $700 million by 2026, and "two-thirds of that would be in Three Waters infrastructure".
Mr Lewers wanted "certainty in what we’re being directed to do, and not have it changing every three years".
Local Government Minister Kieran McAnulty said he understood there was more work to establish exactly what had happened in Queenstown.
"But what we do know at this time appears to underline the need for water services reform, which will mean water services providers have access to the funding needed to ensure drinking water is safe to drink for New Zealanders and our overseas guests, while maintaining the affordability for households".
National local government spokesman Simon Watts said his party’s local water done well policy "will give councils the tools they need to get water infrastructure on a sustainable financial footing, and set strict rules for asset management and water quality".
"We can’t wait any longer for that change, which is why National will repeal Labour’s Three Waters in our first 100 days in office," Mr Watts said.
