The council set rates at an average 14% increase after receiving 660 submissions, and conducting a combined total of six days of hearings, and occasionally heated deliberation.
This was down from a signalled 20% in long-term planning (LTP) documents, and substantially lower than a 25% rates cap that caused alarm among ratepayers when announced in January.
Clutha District Mayor Bryan Cadogan thanked councillors for finding cost savings of $65.4 million during "sometimes intense" discussions last week.
"[We] spent the past three days around the council table going line by line to consider over 300 lines for exclusion ...
Following a comprehensive review of the capital works programme we’ve managed to make cost savings of $65.4m. This has brought our initial 20% proposed average rates increase down to 14% for year 1 of the LTP, while still showing commitment to the overwhelming majority of requests that came through the community submission process.
"The eventual outcome, while still containing challenges, reflects the commitment to our district’s vibrant future. I want to thank staff and councillors for prevailing despite unprecedented and unfounded personal attacks."
Three Waters legislative requirements had been a "big driver" for the proposed rates increase, he said.
"The last few days have brought to light the significant cost increase to the Greenfield Water Scheme project, which highlights the need to continue to lobby central government.
"Many of the outcomes are controlled by Wellington and our ability to genuinely make changes, especially to Three Waters projects, has been challenged due to our inability to negotiate under the present structures that prevail."
The council approved additional funding of $5.435m to complete the Greenfield Water Scheme project.
This includes construction of 49.8km of pipeline, three booster pump stations, a water treatment plant and three bore drillings, expected to be completed by the end of the year.
The new scheme will provide a better and more reliable water source for consumers on the Balmoral 1 and 2 and Tuapeka East and West rural water schemes, and in Waitahuna and Lawrence.
A council spokeswoman said, given the project was more than 80% complete, councillors felt there was no other option than to finish the project.
"However, they did acknowledge the cost of a water rate for those consumers after year 4 of the LTP was significant, and [will] be lobbying central government for support."
The need for additional funding was due to increased costs of materials, labour and treatment plant equipment, inflation and overall cost increases.