The project, the biggest of its type for the council, upgraded the Cromwell plant and connected it to Bannockburn’s wastewater system.
Early forecasts had the plan costing $10.9 million but the project came in under budget at $8 million.
A council statement said the $2.9 million saved would be reinvested in future projects in its 10-year plan to improve wastewater infrastructure.
Central Otago Deputy Mayor and Cromwell Community Board chairman Neil Gillespie said good decisions were made with good outcomes.
"We invested ratepayers’ money effectively and at the right time, with the latest technology and design."
The improvements ensured the plant could manage three times the volume of wastewater the previous plant could, which was significant for Central Otago’s population growth, Mr Gillespie said.
Some of the innovations at the plant include Kiwi-designed aquarators that mix air into the ponds to allow bacteria and algae to break down harmful matter and clean the water.
Mr Gillespie said the upgrade would benefit the environment.
"The [wastewater] treatment is far better and far more advanced. The old system served us well, but it was out of date. It didn’t comply with modern-day standards."
Central Otago Mayor Tim Cadogan cut the ribbon at the plant site and had a bigger picture in view.
Looking at wastewater systems in the region as a whole was important, he said.
"We can’t look at our communities in isolation. We got to look after it the whole way."