The tight-knit Otekaieke community is divided and in a state of turmoil and over a proposal to sell a Waitaki District Council-owned water race to a private company, a group of race ratepayers says.
It wants a referendum on the privatisation delayed.
The council has already started the process of holding the referendum, with voting papers due to go out next month, but eight ratepayers who use water from the race want more details before it is held.
They also believe only water race ratepayers should be able to vote and not people who reside in the water race area.
The race, built in 1907, provides irrigation and stock water for about 30 properties but not drinking water.
A private company of farmers, the Otekaieke Water Company Ltd, approached the council earlier this year to buy the 10km water race, its intake in the Otekaieke River and reticulation.
The company wanted improvements made to the race, but the council was not prepared to invest the money.
Developing the race also does not naturally accord with the council's usual business or priorities.
The council agreed to sell the water race, subject to a binding referendum paid for by the company.
Four ratepayers - John Hutton, Greg Jarvis and Andrea and John Chambers - representing the group said yesterday the referendum was being promoted by three farming companies which wanted access to the race to expand their irrigation.
The community's concerns related to the council opening the referendum "to all and sundry" living in the water race area instead of current race users.
That would include people renting houses at Campbell Park Estate, who comprise one of the parties requesting the sale.
"By opening the vote out to all ratepayers it dilutes the voice of the current water race users.
"The community feels this is undemocratic, fostering division within the local community," they said.
The community had obtained an opinion that the council was acting outside its powers in an endeavour to absolve itself of its responsibilities for the scheme.
"The community would like the referendum to be put on hold until adequate discussion has been held.
"The issues of the creation of a water company, allocation of water, voting rights and mitigation measures are yet to be resolved.
"The community feels the process has been rushed, individuals picked off and is keen to see a more collaborative, transparent process between the three farming companies and the downstream users," the ratepayers' group said.
The council is conducting the poll under the provisions of the Local Government and Local Electoral Acts and voters have to register by this Friday.
The area under the terms of the referendum covers properties paying an Otekaieke water race district rate, class A and B, and electors residing at properties in the poll area. david.bruce@odt.co.nz