Queenstown Lakes District Council (QDLC) said it has been given two notices after failing to stop partially treated wastewater from spilling off the site of a local treatment plant and "potentially" leaking into nearby rivers.
The QDLC said in a statement that it has been issued with two abatement notices and infringement notices from the Otago Regional Council (ORC), after performance issues at the Shotover Wastewater Treatment Plant (WWTP) resulted in "periodic spillover".
"Prior to 2019, the treated water was discharged directly to the Shotover River.
"In recognition of the cultural sensitivities around direct-to-water discharges a new disposal system was commissioned.
"Known as the 'Dose-and-Drain' disposal field, the system was intended to allow the treated water to soak into the ground prior to entering groundwater, and ultimately, the Kawarau River.
"Now, the disposal system has experienced performance issues which has resulted in persistent ponding within the field, along with periodic spillover of treated water beyond the designated site.
"Put simply, the treated water is not soaking into the ground at the rate it was designed to."
The QDLC said it has allocated more than $77.5 million through the current Long Term Plan to develop a new disposal strategy for the plant but this "will take some years to implement."
"Despite these challenges, it is important to highlight that there has been considerable investment in this treatment facility over the past decade.
"These upgrades have resulted in significant improvements to the quality of the treated water whilst also providing for the capacity to meet the growth demands of the Whakatipu basin."
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