Mr Carter described the decision to approve capital works for a new treatment plant as a milestone for Omanaia residents, who currently had to boil their water.
"I would like to acknowledge the hardship and injustice Omanaia hapu Ngati Kaharau and Ngati Hau have suffered for years, and thank them for working constructively with the council to find a solution to this historic issue," he said.
The decision was also good news for Rawene households, who currently relied on water from a treatment plant that would need replacing in the next 10 years.
"We have built some drought-resilience into the new water supply, but plan to explore other drought resilience options with hapu and communities," Mr Carter said.
He was pleased that the council was able to fund the new scheme in a way that minimised costs for Omanaia and Rawene ratepayers, but the district needed to talk about how it rated for water.
"The government has withdrawn subsidies for water and sewerage scheme upgrades, so infrastructure and affordability are foremost in our minds as we start to develop our long-term plan 2018-28," he said.
Council staff were calculating the new capital rates, and issue new rate assessments as soon as possible Until then, Rawene and Omanaia ratepayers were advised to pay the current water rates.