The plan knocked back by the Department of Internal Affairs was set to cost households an extra $200 a month in water charges and sparked fears some ratepayers would lose their homes.
Now the council faces an unofficial estimate of "millions" to review its entire water services network as it was told its plan did not comply with legislation.
Just days before voting in the 2025 local elections closes, the council announced the Secretary for Local Government had written to the council to inform it that the Department of Internal Affairs (DIA) wanted the council to "reassess, amend and resubmit" its non-compliant Water Service Delivery Plan.
The DIA had given until the end of June next year to resubmit the plan, which will involve detailed infrastructure assessments, particularly for underground pipes, valves, and water connection points.
Outgoing Waitaki District Mayor Gary Kircher said the work, originally planned to be spread over five years, now needed to be compressed into eight or nine months and would be a job for the next council.
"It is a huge amount of work," Mr Kircher said.
"We've got a reasonable understanding of or a good understanding of some of our infrastructure, particularly more of the things that are above ground.
"When it comes to the likes of the pipes and valves and other infrastructure underground, they're not easy to assess and so in most cases I would expect it's going to require cameras going through and quite detailed assessments made of each piece of pipe and each valve and every toby around the district water goes on to property."
In August, Mr Kircher voted against a plan approved by the council that would increase water charges by 90% over two years from $1352 to $2566.
At the time he said he feared people could lose their homes due to the additional costs.
"I don’t want to consign any of our most vulnerable people to possibly losing homes, because they can’t pay rates with all of the other challenges they’re going to have around affordability."
He said he had failed to get what he believed was the best option — a partnership with Central Otago, Clutha and Gore — across the line.
As part of the government’s Local Water Done Well reforms, councils throughout New Zealand were required to submit a water services delivery plan to the DIA.
The plans were a legislative requirement for councils to demonstrate how they will meet regulatory requirements, support growth and urban development, and ensure financial sustainability in the delivery of water services.
Yesterday the council said the letter it received, on Monday, had now asked the council to consider different scenarios including a different delivery model to the in-house option agreed by council in July.
It said DIA officials had identified a range of other areas which should be reconsidered because of the asset review.
These included projected capital spending on infrastructure, the revenue required and the financial sustainability of the revised plan, based on the asset review.
"The secretary will be briefing the Minister of Local Government on the outcome of the DIA’s assessment of Waitaki's [plan], including advice on the potential use of ministerial intervention powers, if needed.
"Council officers will be meeting with representatives from the DIA to discuss their findings and requirements ahead of a briefing of the new council and decision on how the council wants to proceed.
"Early estimates indicate the cost is likely to be in the millions of dollars."
The news came the same day the council’s jilted former dance partners were given the go ahead to establish their joint plan, which Waitaki withdrew from before going alone.
The remaining Southern Waters shareholding councils received unanimous approval for their joint plan from the Secretary for Local Government.
The three councils’ chief executives yesterday welcomed the news, saying it marked a significant milestone in the journey to establish a successful water services entity.
