The Government is contributing $6.8 million to the development of a new sewerage scheme south of Whangarei.
Whangarei District Council Council says the scheme planned for Ruakaka South aims to help solve potential public health and environmental problems posed by the number and condition of septic tanks of the 470 homes in the area.
The council is putting in $5,000 per residential property which it says will bring down the cost to each household connecting to the scheme from an estimated $28,000 to $10,200.
A public meeting will be held on 7 January to discuss the implications of the scheme.
Wastes and Drainage Manager Andrew Carvell said the population of the coast expands greatly in summer and the council wants to include the wider community in the consultation.
Ruakaka South is one of the last non-reticulated urban communities on the Whangarei coastline, the council says. Schemes have been built in Oakura, Tutukaka, Whangarei Heads and Langs Beach.