The appeal court in French Polynesia has convicted and fined the president Edouard Fritch and his predecessor Gaston Flosse for abusing public funds.
As current and former mayors of the town of Pirae, the two arranged for the town administration to pay for the water supply to the upmarket Erima neighbourhood, where Flosse lived.
Flosse set up the scheme and Fritch allowed the abusive billing process to be continued.
The appeal court has upheld their conviction, fining each $US10,000 and ordering the two to jointly settle the water bill of $US820,000.
The court also ruled that Flosse, who is 89, would be ineligible to hold public office for five years.
Flosse described the court verdict as scandalous and crazy while his defence argued that the matter dated back to the 1980s and should no longer be considered.
Because of earlier corruption convictions, Flosse had been barred from public office for five years from 2014.
This year, he tried to run in the municipal elections in Papeete but failed to meet the registration requirements to be a candidate.
Fritch, however, was re-elected mayor of Pirae.
The two politicians fell out after Flosse lost power, and last year Flosse was fined $US20,000 for making defamatory statements about Fritch.