The community-owned drinking water scheme cost $790,000 and will be officially opened tomorrow.
"It's the biggest thing that's happened to Millers Flat for many years," Mr Abbott said.
Not only was the scheme providing a safe, potable water supply for the town, it was also stimulating new development.
Previously, the town's 130 residents relied on a mix of bores, rain and the Clutha River for their drinking water but there were issues with water supply and quality.
All now had access, if they chose to join the scheme, to an improved supply developed as a community initiative. The water is from the Clutha River, through a bore at Old Punt Rd.
Otago Regional Council regulations about the need for a 50m distance between a drinking water source and the disposal field for septic tanks had acted as a barrier to any new buildings being constructed in recent times, Mr Abbott said.
"Now that we've got a new scheme and new source of water, there's already been two building permits issued, probably the first for about 18 years."
The need for a new drinking water supply was highlighted in June 2005 at a meeting run by the Central Otago District Council to see what issues were concerning Teviot Valley residents.
Planning began soon after and a group of residents set up a committee in 2007 to investigate and promote the project.
Plans were presented to the community in 2008, with 67% of property owners indicating they would be interested in connecting. Shortly after, 73 property owners each paid $500 to join the scheme, knowing there was no guarantee it would receive any government funding.
The water company was formed in May 2008 and, after some research, discovered it met the criteria for a grant through the Ministry of Health's drinking water assistance programme, a government initiative to help small towns supply safe drinking water.
Last year, the company was told it would receive a grant of $608,000 through that programme.
Mr Abbott said 84 property owners had now joined the scheme, with seven owners declining the invitation.
Each water user connecting to the scheme initially paid $1500 to $2500 and then a fixed charge of $200 to 300 a year. As well, the use is metered and users pay between 20c and 50c per 1000 litres.
Mr Abbott paid tribute to all those who helped bring the scheme to fruition, including the support of the district council.
There were about 130 permanent residents in the town and it was unusual for a town to take responsibility for its own water scheme, he said.
WATER WORKS
- Millers Flat water scheme facts:
> Drinking water supply.
> Official opening tomorrow.
> Cost $790,000.
> 84 properties connected.
> Funded by water users and Ministry of Health grant.
> Consists of 9km of pipeline, six 30,000-litre tanks.
> Work to be completed by end of year.
> Capacity can increase by 20%.
