Four families living in Waikerikeri Valley area want to connect to the Clyde town water supply through a privately funded pipeline after their bores dried up 20 months ago.
They had hoped for approval yesterday.
Council development engineer manager Peter Morton told the board there was a "serious issue" to do with an historical agreement with Contact Energy which runs the Clyde dam, something that had come to light after the report to the board had been written.
"At this moment we are unable to advise the board fully."
Speaking after the meeting, he said the agreement basically meant Contact was responsible for supplying the electricity to power the Clyde water supply pump.
Before these extra connections were made, he said he would need to investigate the impact they would have on electricity needs.
Speaking on behalf of the affected families at the meeting, Maurice Smith said since their bores had dried up, they had been drinking treated irrigation race water, but that water was only available "in irrigation months" and during the other five months of the year, the ponds froze over or stagnated.
There was also a problem with dead animals or chemicals potentially getting into the race, especially considering the length of the network, he said.
Through extensive research to find new bore sites, they had "turned up nothing".
Speaking after the meeting, he said during the winter months, they had to rely on neighbours for drinking water and sometimes for showers.
It was especially hard for two of the families who had had babies within the last 20 months, he said.
Between the two families, there were five other children under the age of 9.
Despite the "disappointing" outcome of the meeting, he said he understood how long things like this could take and he was grateful for the "favourable outcome".
The board agreed to keep the report on the table to consider, with more information, at their next meeting.
A resource consent application for property development in the Mutton Town area, also proposed to connect to the Clyde town water supply.
The report said similar situations had been allowed in Ranfurly and Bannockburn and twice in the Vincent ward, on a restricted supply basis.
