The annual drinking water-quality review, which follows the review of drinking water supplies between July 2007 and June 2008 by the Institute of Environmental Science and Research, advised the council to urgently review and improve its corrective action procedures following bacteriological transgressions.
The Clutha District Council was among 38 local authorities nationwide identified in the report for failing to properly monitor water supplies to identify hazards and remedy them rapidly.
"This is of concern because failure to remedy the cause of a transgression subjects the population to prolonged exposure to faecally contaminated drinking water and imposes an unacceptable risk of waterborne disease on the community," the report said.
However, Clutha District Council chief executive Charles Hakkaart "strongly" denied the claims.
Mr Hakkaart said, technically, the Ministry's claim that the council had not taken the prescribed corrective actions on several occasions for the Clydevale-Pomahaka and Clinton supplies - two of its 22 water supplies - was correct.
But it was of little consequence, given the other measures which were in place.
The council had taken significant steps to protect the public health of water consumers on the Clydevale-Pomahaka and Clinton supplies, he said.
"Council had imposed a boil-water advisory notice on these supplies because sterilisation was unreliable.
This was regularly advertised and was well-known by consumers."
A new water source and improved treatment for these supplies had significantly improved the water quality and the notice to boil water had been lifted.
This was the result of a $2.3 million upgrade after extensive consultation with the community over many years.
"Furthermore, the ministry report is for the 2007-08 year, and council has already implemented substantial upgrades since that time.
"In 2008-09, we had no instances of inadequate corrective action, therefore there is no need for us to urgently review and improve our procedures, as suggested by the report."
Mr Hakkaart said a recent ministry report stated the council was to be commended for the development of public health risk-management plans for virtually all its water supplies.
Legislation required that, within set time frames, the council must take all practicable steps to comply with New Zealand drinking water standards.
"Clutha District Council is well within relevant deadlines towards meeting these standards.
"It has a heavy capital works programme in place to achieve this, including having secured substantial ministry funding for major upgrades to the Balclutha, Kaitangata, Lawrence and Tapanui water supplies over the next two years," Mr Hakkaart said.
