Matamata-Piako mayor Hugh Vercoe said businesses were more in favour of installing water meters at their own cost, believing this would give a better indication of how much waste water was being generated.
This would then be compared with the household equivalent of 328cu m, the upper limit council allowed.
"If you can show how many household equivalents you are using in water, that would equate to how many waste water connections you have," Mr Vercoe said.
He believed this was fairer than the pan tax, which was not an even representation of the wastewater being used.
Pohlen Hospital chief executive Anton Turner said not-for-profit organisations should be kept at the current flat rate ($593 but rising to $680 from July) or a uniform targeted rate to acknowledge the work they did in the community.