Its assets committee was yesterday expected to recommend going ahead with a pipeline about 40km long from Oamaru's water treatment plant to supply water to the Hampden-Moeraki and Herbert-Waianakarua water schemes.
It would be funded by a loan which would be repaid by consumers on the two schemes.
However, yesterday Moeraki resident Alison MacTavish and Herbert-Waianakarua water committee member Bruce Parker urged the committee to allow more time for consultation before a final decision.
Both emphasised the decision would affect the two communities, particularly through rises in water rates.
Mr Parker acknowledged his committee may have fallen down on consulting the community, and promised it would do better.
However, it needed extra time to do that.
The water for the Herbert-Waianakarua scheme came from the north branch of the Waianakarua River which was clear, and residents did not think there was a problem.
''When you propose a new scheme, they wonder where that has come from. It's a major decision for our community,'' he said.
Mr Parker said delaying a decision would give his committee a chance to hold a public meeting, probably in late January, to inform everyone of the options and get a clear direction from the community.
From discussions with National MP Michael Woodhouse, Mr Parker believed there could be a review of the drinking water standards law, which could also affect any decisions.
The pipeline was estimated at $4.9 million - not the cheapest of four options, but the best in terms of ensuring enough water for the future while providing cost-effective treatment.
Councillors were sympathetic to the proposal and the committee has recommended that at the February or March meeting, the council considers the pipeline option, funded by a loan repaid by the two schemes' consumers.
In the meantime, it would continue discussions with the two scheme committees and their communities.
There was some disagreement among councillors as to whether the committee should indicate the pipeline as its preferred option, but when put to the vote it was decided to do so.
Cr Jim Hopkins said all the committee was doing was recommending the council ''considers'' the pipeline option, but would also look at others from community consultation.
Cr Melanie Tavendale said putting up a preferred option could be seen as the council having made up its mind and not listening.
''It's about informing the community. If the [pipeline] option stacks up, have confidence in the community,'' she said.
