The Mawson Ave Water Scheme supplies water to 68 homes and businesses around the State Highway 10-Waipapa Rd intersection and along nearby Mawson Ave. The water, which is filtered and UV-treated, comes from a bore behind the Waipapa shops.
It is owned by the Robin Lock Family Trust, which has told customers the scheme will be shut down ''for personal reasons''.
After some debate at last week's meeting councillors opted to hook Mawson Ave up to the existing Kerikeri water scheme from July 1.
Other options included taking over ownership and operation of the private scheme or helping residents install rainwater tanks.
Infrastructure manager Andy Finch said the switch-over would take a few days and cost relatively little — about $30,000 — because council water mains already ran under SH10 and Waipapa Rd.
Residents would need to be consulted first, however, and couldn't be forced to join the council water scheme.
The council didn't want to take over the existing scheme because the bore and tank were on private property and the risk of contamination was high.
A staff report stated a failing wastewater disposal field located a few metres from the bore could create a ''Havelock North-type risk to consumers''.
In 2016 contamination of Havelock North's water supply made 5500 people ill and contributed to four deaths.
While the switchover would be relatively inexpensive, in the longer term the whole Mawson Ave reticulation network would have to be replaced at a cost of about $500,000.
Mr Finch said the pipes weren't up to council standards in size or materials and there were no hydrants for firefighting.
The cost of replacing the network would need to be included in council's Long Term Plan, which meant consultation would have to be completed by May 16.
The downside for Mawson Ave residents is that their water bills are likely to go up. A typical user in the private scheme paid $460 a year compared to about $800 a year on the council scheme.
Replacing the network will add $7.55 to the annual water bills of all Kerikeri customers.
In a letter to customers Edward Lock, of behalf of the Robin Lock Family Trust, thanked customers and apologised for not being able to continue supplying water.
He encouraged anyone who wanted to take over the scheme, as an individual or a group, to make contact.
Initially the family wanted to shut down the scheme on March 31 but extended it to July 1 to give the council more time.
Councillors rejected the option of installing rainwater tanks because they wouldn't be suitable for all properties in the area, and doing nothing posed a ''high risk of reputational damage'' if homes ended up without running water and families had to be ordered out for health reasons.
