Much-needed sewerage scheme upgrades for two small South Otago townships may fail to get Government grants.
The Clutha District Council plans to apply for Ministry of Health subsidies for new schemes for Benhar and Tokoiti.
However, council water services manager Hank Stocker has told the district assets committee "early informal advice is not encouraging".
Tokoiti's application was not likely to meet the scheme's deprivation index criteria while Benhar's population of 82 fell short of the minimum of 100 needed to attract money.