The Government has granted subsidies totalling almost $2 million to build a safe water supply for Omanaia and improve water storage at Rawene, both in South Hokianga.
However, Far North District Council applications for similar subsidies for Opononi-Omapere and Te Kao have been turned down.
Several water schemes across the Far North are in dire need of improvement due to poor water quality or susceptibility to drought. Water restrictions in South Hokianga, where most supplies come from small streams, are an almost annual occurrence.
Infrastructure committee chairman John Vujcich said proposals for upgrading water supplies were included in the council's recently signed-off long term plan.
Ratepayers agreed that the schemes need to be upgraded but the cost could be unaffordable, especially where there were few users to share the costs.