With the proposed Lake Tarawera sewerage scheme estimated to cost $17.8 million, it is anticipated Tarawera residents alongside regional and district councils will make up the difference, after the government grant of $6.5m towards the project.
Rotorua Lakes Council group manager infrastructure Stavros Michael said the council was in the early stages of the proposed project, with the community-led steering committee.
"This includes council and other stakeholders working through options, including comprehensive scheme funding options."
He said the application to the government's Freshwater Improvement Fund was their first funding application for the proposed scheme.
"It would be expected, as with other wastewater schemes such as East Rotoiti/Rotoma, that Tarawera ratepayers would contribute, along with Rotorua Lakes Council and Bay of Plenty Regional Council, but there are still processes to go through."
The proposed project will be considered as part of Rotorua Lakes Council's 2018-28 Long-term Plan process later in the year, he said.
Tarawera sewerage committee chairman Glenn Snelgrove said the government funding would cover one-third of the project cost, and the Rotorua Lakes Council would put forward a subsidy of $1500 per property.