Cr Dave Cull yesterday admitted having an illegal connection to the Dunedin City Council water main at the Portobello home he bought 15 years ago.
He told the Otago Daily Times he had "inherited" the connection when he bought the property, and initially used the mains supply to top up water tanks on his property "from time to time".
He still used the connection and had never paid water rates for the service.
"From the point of view of a councillor, I'm slightly embarrassed I'm in this position."
However, he said there were many reasons for the historic connections - with some installed by council staff following informal agreements - and he and other homeowners had been active in trying to formalise their existence.
He had notified council staff of his connection, but was yet to hear how the matter would be resolved.
"It's not something that's just been discovered.
"It's been simmering away for donkey's years," he said.
Cr Cull's comments came after he outed himself to his colleagues during a debate on the council's Water Supply Bylaw 2008 at yesterday's infrastructure services committee meeting.
The bylaw prevented properties outside existing water supply zones from connecting to council water pipes - even if they ran right past the front gate - to prevent unwanted subdivisions along pipelines.
Cr Cull argued for a change to the bylaw, saying it was "inevitable" exemptions would be needed as pipelines were upgraded and "silly" not to allow for them.
He then told his fellow councillors he had to "declare an interest" in the debate, saying: "I live in a house with an illegal connection."
His property was among "dozens and dozens" of Dunedin homes with illegal or informal connections, and the council was "shutting one eye" to them with its existing policy, he believed.
"Council is providing the water anyway. It's just not getting the money," he said.
Cr Richard Walls said he was "gobsmacked" by the situation, while Cr Chris Staynes suggested properties should be offered a "one-off chance" to connect to the city's supply as sections of the pipe network were upgraded.
Council city environment general manager Tony Avery said staff were aware of illegal connections, but stressed the number was "dozens and dozens" out of 46,000 households.
The spread of water mains and roads were the "main drivers" encouraging subdivision developments, and the council's existing policy aimed to control "shape and form" of the city, he said.
Any changes should be considered as part of a review of the district plan, he believed.
Council asset planning manager Laura McElhone said staff were working through a list of illegal connections to determine whether owners should be disconnected or forced to pay water rates.
Cr Cull's property was on the list, she confirmed.
Cr Cull replied: "I put myself on that list."
A staff report providing more information on the policy would be considered at the committee's next meeting on June 14.
