Mr Rhodes said he acknowledged there were issues which had arisen from the Havelock North water inquiry, but wondered what the community expected.
"While I support the goal of improving the efficiency and effectiveness of water supply services and absolutely wish to minimise wastage and inappropriate use of use of water, it is my opinion the proposed changes have been poorly considered and inappropriately crafted," he said. "The financial and social impacts of several of the proposed changes will be considerable."
Section 17.2 of the new bylaw proposes Dannevirke rural or lifestyle block owners will be required to install a storage tank with a minimum capacity of 20,000 litres to store collected rainwater or other harvested water.
Mr Rhodes' submission to council said there are very significant changes in the bylaw with potential financial liability for rural and lifestyle residents around the future availability of water and the associated infrastructure.
"I see some conflict in these changes and what's ironic is that in its Long Term Plan council is asking the question, 'should we [council] invest in a new water network?' Council consultation on the bylaw changes hasn't been adequate. The consultation is flawed."
Mr Rhodes said there needed to be a strategy on water supply, especially Dannevirke's rural water supply.
"Council needs to seek opinions and then use the information for analysis, including economic analysis," he said.
Mr Rhodes said the requirement for Dannevirke rural and lifestyle residents to install a storage tank with a minimum capacity of 20,000 litres fails to provide any analysis around the suitability to meet the needs of rural property owners.
"In my situation, 20,000 litre storage would be sufficient to meet my livestock water demand for just 20 days through summer," he said.
Mr Rhodes owns a 13ha property in Ruahine St, with water sourced via metered supply from the street. The water is for domestic use and also provides supply to livestock, which through December and January can be 80 head of cattle.
Bore water is not available on the property and the stream on his western boundary is polluted and unsuitable for livestock.
"I accept the responsibility I have to use water wisely and efficiently and to not be wasteful," he said.
Council also proposed to implement a new requirement for residents in Akitio and Norsewood to increase existing or new storage tank capacity to 20,000 litres minimum, within a year of the adoption of the bylaw.
The Havelock North water inquiry identified a number of risks which must be addressed across New Zealand, Peter Wimsett, council's manager of strategy and district development, said.
"Until recently, roof water was considered a way to supplement household water. However, this is untreated and can contaminate the treated water provided from the council supply," he said.
"It does not make sense to go to the expense of installing 21st-century water treatment systems only for people to remain exposed to almost certain contamination from roof water."
Norsewood's Rubina Hallager told councillors she had concerns about a proposal to pipe water from Dannevirke.
"It would be very expensive, considering the small number of Norsewood's population which would benefit," she said. "Before moving to Norsewood I looked at other councils who had this and their rates had skyrocketed, making those places untenable for me to live there. Piping water would need a lot more consultation."
Rubina said the cost of 20,000-litre water tanks could be difficult for residents to afford and she asked if council could organise a bulk buy.