Central Otago district councillor Victoria Bonham said there were about 70 irrigators in her home of Galloway, most of whom lived on lifestyle blocks, and their land had a higher cost per hectare than other irrigators in the scheme.
Mr Kane said the cost per hectare was not higher, but the running costs were.
"There's a reason for that which is the power cost which gets reimbursed within the Galloway situation.
"The issue here is, in order to bring the existing infrastructure up to standard to deliver the water that you're currently getting, there is a cost to that.
"Reliability is very important for farmers, but perhaps not so important for lifestylers, so individuals need to think about what they will each get out of this."
Ray Wright, also of Galloway, said that community would need to combine its efforts.
"We see ourselves as having a farm management plan for those lifestylers on Galloway and remain as a community running it."
Mr Kane said the group was doing all it could to ensure they could still operate it in that way.
Matakanui Station farmer Andrew Paterson said he welcomed the reliability the scheme would bring.
Potential irrigators were asked to put up $50 per hectare they wanted irrigated to fund the next stage of the project.
Declarations of interest were due by October 25, but the group was flexible about that date.
The scheme involves either raising the Falls Dam, or building a new, higher dam at that site.
Estimated costs for dam construction work range from $28million to $80 million and the estimated cost of the largest distribution option is $100 million. The largest option could irrigate 25,000ha of land.
