It would also market and execute new water user agreements, establish billing and invoice processes and deliver technical operating and maintenance services.
The only submitter to speak on the proposal was Hastings District Council candidate Chris Perley, on behalf of Transparent Hawke's Bay.
He requested consultation on the proposal be started again, as the lobby group felt there had not been sufficient information on the entity, which would increase the complexity and bureaucracy around the scheme, and reduce the council's accountability to "arms length decision making".
"There are enough issues around what's been going on with the Ruataniwha Dam amongst the public of Hawke's Bay to make you realise there's an integrity and trust issue," he said, adding because of this perception council "should be bending over backwards to show and demonstrate a clear openness of dialogue and questioning and information".
ServiceCo would be a subsidiary of HBRIC and carry out the operational work for the Limited Partnership/ General Partner (RWM Ltd) via a service agreement with Ruataniwha Water Limited Partnership.
During the meeting councillor Dave Pipe asked if the council was satisfied it had sufficient oversight of the new company.
Council interim chief executive Liz Lambert said those involved in ServiceCo would report to RWLP - "a consortium of investors" - one of which would be HBRIC.
"Ultimately they [HBRIC] will be responsible back to us for the activities that that company carries out."
"I am satisfied there will be accountability."
When established, two directors would be appointed to ServiceCo, and report to the board of HBRIC.
Ms Lambert stressed there would be multiple lines of reporting to council from the company.
Speaking on concerns raised by Mr Perley, Mr Pipe said having distance between council and ServiceCo made sense, as there needed to be separation between what the company was doing in regard to the scheme, and "what our legal responsibilities are as the regional council, and the statutory responsibility that we have in the [Resource Management Act], we have in enforcing consents, and making sure there's compliance there."
Chairman Fenton Wilson said he was happy to move to approval on the proposal.
"I do note that this scheme still has a few hurdles of its own to get through but if this gives some certainty on at least part of it, I think it's worthwhile doing now, and I haven't been convinced we shouldn't do it now."