This extension has created a $207,049 cost overrun for the Clutha District Council, and was done without public consultation or a vote by council.
''It was a fait accompli,'' Clutha Mayor Bryan Cadogan said.
The scope of the project changed and ''the money had been spent''.
''On having discovered the facts of the situation that arose in Pounawea, council was left with little choice but to rectify and find the best way to move forward.''
The camping ground at Pounawea was to have a pipeline linking it to the Owaka sewerage scheme 3.9km away.
But no formal process was followed and the project changed to include the nearby township.
The project was approved by the council for $310,625, but the sewerage scheme has cost $517,674 to date.
The council is budgeting an extra $70,000 to complete reticulation for possibly all 110 Pounawea homes.
An independent review has been held and the council will review steps taken to comply with its recommendations and decide on funding sources for the project overrun at tomorrow's council meeting.
It is proposed that funds come from a standard 10% district wide contribution, interest from the Port Molyneux Endowment Funds and general reserves.
A council report said reticulation to the system would be voluntary for homeowners in Pounawea near the Catlins Heads but it was hoped homeowners would connect to the scheme.
This would reduce the amount needed from reserves, council chief executive Steve Hill said.
The independent review - the Morrison Low report - recommended that all ''complex or high value'' projects have a senior executive assigned as a project sponsor to liaise with council and a project manager who would administer a project plan.
• The council will also vote tomorrow on whether to adopt the Owaka Township Reserves Management Plan.
The plan includes the proposal for a stainless steel waka sculpture.
- Hamish Maclean
