Hamilton City Council has agreed to form a ratepayer-owned council-control organisation (CCO) to manage water and wastewater.
The decision is an in principle one, meaning a final decision cannot be made until the public has been fully consulted on the proposal.
The decision is also dependent upon Waipa District Council agreeing to join the CCO along with Hamilton City Council and Waikato District Council.
Waikato District Council agreed to support the CCO in June. Waipa District Council will not formally discuss the issue until next month.
The motion to support the CCO in principle was passed 10-3 with Councillors Macpherson, Gallagher and Wilson voting against.