"People think you can't have a bill unless you have a water meter, but it could just be billed like the rates."
However, any changes to the way water is currently billed would be council's decision and is outside the scope of the report.
Cranleigh managing director Paul Bayly said the report is about infrastructure. "It's got nothing to do with how individual councils may or may not choose to recoup their costs."
The report suggests moving to a CCO would offer benefits such as a stronger regional water network, cleaner drinking water and waste water.
Currently water is charged in each household rate. An average saving per household would be $38 if council were to move to a CCO.
Waikato District Council is planning to build two reservoirs, one in Matangi and one in Tamahere to increase their storage capacity. Hamilton is also planning to increase their storage capacity on the eastern side of the city with two additional reservoirs in Fairfield, Ruakura, and Hillcrest. Cr Macpherson questioned whether it was possible to complete water projects with other councils without the need for a CCO, however Mr Stanton said it would make it more difficult to conduct projects.
"It is a feature of the Waikato that they do collaborate, but it took three and a half years on a water strategy. Each have a responsibility to their own areas. If it is a CCO owning and operating...it is a smoother way of making these decisions."
The report recommends any surpluses gained from savings should be re-invested in the waters network to improve environmental performance or returned to water customers as reduced water costs. It is estimated this will be within the current staff turnover and may not lead to redundancies, however, $1.5 million has been included in the costs for redundancy and recruitment costs.
It recommends a board of directors appointed by all three councils govern the CCO. A joint committee of elected councillors would overview the company's performance and set the parameters under which it could operate.
Mr Bayly said: "The delivery of water is a core activity and we very strongly believe that councils, as owners of the company, should have a strong influence.
"We are not, in any way suggesting that councils 'walk away' from water. We're saying entirely the opposite. For the good of the region, we believe there needs to be a far stronger, more comprehensive and longer term focus on water infrastructure by people whose only role is to deliver the best possible water services at the best price. At the moment, water infrastructure is fighting for its share of funding among all the other services that councils are responsible for. "
The report investigated two other options including retaining the status quo with all three councils continuing to run their own water operations. It said the status quo would always offer "only basic service delivery and performance and at a higher cost to ratepayers".
Over the next decade, the three councils are looking to spend a combined $764m on water infrastructure. Waipa and Waikato district councils, in particular, face challenges in meeting national drinking water standards and complying with environmental rules.
Research into the cost of maintaining status quo took into account the cost of repairing leaks in Hamilton City's waterlines.