The Hutt City Council will consult with the Lower Hutt community on higher levels of rate increases and borrowing in a bid to curb water leaks.
It comes after the council agreed to significantly invest in water infrastructure.
The draft long term plan will prioritise spending $1.5 billion over 10 years in a move to safeguard drinking water, storm water and waste water.
There are currently 839 confirmed active leaks in Lower Hutt, which needs to drop down past 280 for Wellington Water to be able to respond to small-sized leaks within 20 days.
Lower Hutt mayor Campbell Barry said water and transport made up 83 percent of the council's spending priorities.
"Wellington Water has advised they could deliver up to $2.5b in water infrastructure over the next 10 years, but without reform or central government funding that is completely unaffordable for our ratepayers."
The proposal would see a rates remission of up to $250 a year for low-income households.
The draft plan shows almost a 17 percent rates increase from the start of July.
Barry said the rates hike would not be appreciated by the community, but was for the greater good.
"Elected members take no joy in proposing this level of rates increase. But what we aren't willing to do is kick the can down the road on desperately needed investment in water and transport infrastructure. Nobody wins in the long run if we do that," he said.
"The situation this summer is not sustainable year on year. While pipe renewals are the only long-term fix in stopping leaks, we need to be doing everything we can to avoid an acute water shortage in the short term."
The public will have their chance to provide their feedback on the draft long term plan from 2 April to 3 May.
Elected members will consider the feedback on 1 July.