Hamilton City Council is holding the door open for a shared water company with Waipa District Council after a potential judicial review of the decision was received by Waipa.
After receiving the warning of a judicial review, Hamilton City Council understand that Waipa is seeking legal advice in light of the notice.
The Hamilton council resolved on December 12 last year to establish a Shared Waters Management Company with Waipa District Council, but on December 19, the Waipa council declined to proceed with a shared water company by a narrow majority.
The shared water company would manage water, wastewater and stormwater services for the region.
Executive director special projects for Hamilton City Council Blair Bowcott said communications remain open with Waipa about the possible shared water company.