The Ruapehu mayor has warned his community to expect higher costs for water services.
Mayor Weston Kirton said new water regulations will increase the end cost for users, regardless of which new service delivery model the council chooses.
Ruapehu District Council must decide in principle before the end of the year whether to go it alone in future water service delivery or work with others.
Under the government's Local Water Done Well legislation, councils have a year to develop a water services delivery plan for ministerial approval.
The plan must cover drinking and wastewater, with an option to include stormwater.
The plan can be developed independently or jointly with other councils. It must outline how water services will be managed, meet required quality standards, and be financially sustainable.
The Local Water Done Well Act will replace the Three Waters reforms of the previous Labour government, which the coalition government repealed in February.
Kirton said while the deadline for the plan was September 2025, the council had only until the end of the year to decide in principle whether it would submit a plan independently or in partnership with neighbouring councils.
It must choose one of five options: an in-house business unit; a council-owned organisation, either by itself or in partnership with neighbouring councils; a mixed council and consumer trust; or a full customer trust.
Kirton described the timeframe for these decisions as tight, given the complexity of the issues involved.
"We need to consider a range of factors, including the financial impact on water users, the views of iwi, and the strategic benefits or disadvantages of working with neighbouring councils," he said.
Costs would increase for end-users, regardless of whether the council goes it alone or partners with others.
Kirton said the council had already been exploring the options.
"Every option has its pros and cons, and there are still significant questions to be answered - particularly when it comes to multi-council arrangements.
"Key considerations include how shareholding would be determined, how the delivery of services and charges would be influenced, iwi involvement, how debt would be shared, and whether stormwater would be included."
To help with making a decision, the council was planning district and regional workshops with iwi partners to discuss the options and share thinking.
Kirton is urging residents to stay informed as potential new models are considered.
The council will consult with its community early next year once it has chosen a preferred option.
LDR is local body journalism co-funded by RNZ and NZ On Air.