The money being set aside in the capital for new water pipes is not even half what Wellington Water wants for the next decade.
It is one of the major problems that are to be discussed at the Wellington Water Committee meeting on Friday.
These include an investigation into a potential discharge of sewage - which in January changed the colour of water in the Cook Strait and triggered a 'please explain' letter from Greater Wellington Regional Council.
Funding problems are also posing "extreme residual risks" for two wastewater plants in the city.
Funding offered only half what's needed
Over the past few months' councils in the Hutt Valley, Porirua and Wellington, along with the regional council have announced their plans for water spending for the next decade in their long term Plans.
Wellington Committee Meeting documents show it is a combined investment of $3.63 billion on capital works and $1.46 billion on operational works.
The capital works investment is 48 percent of what Wellington Water has recommended for the timeframe.
Operational works budget proposed by councils is 84 percent of what Wellington Water recommended.
Wellington Water has warned funding below recommended levels will "exacerbate the critical risks faced by the region as well as create new risks."
The documents said the funding proposed by councils meant the water provider could not provide a programme of work that delivered on all the region's strategic priorities.
The papers also detailed the constraints that councils were facing due to other funding pressures in their budgets.
Porirua mayor Anita Baker expressed those funding concerns to RNZ.
"We are planning to spend $1.2 billion over the next 10 years and that's more than 60 percent of the council's budget just on three waters and that's not even half of what's needed."
Baker said reform was needed to help the councils.
"We can't borrow anymore, most of us (councils) we're getting to the top of our lending."
She said water was the one thing keeping her awake at night
Treatment plants
One of the issues set to be canvassed at the meeting is the lack of funding for wastewater treatment plants.
The documents stated a lack of funding proposed at Wellington Water's recommended levels for the Moa Point plant's electrical control systems meant there were likely to be high to extreme "residual risks" at the facility over the next few years.
Residual risks are any risks that remain after action has been taken to reduce them.
The water provider is warning there were same high-to-extreme residual risks at the Western Treatment Plant in Karori during the same period.
Moa Point discharge
Wellington Water is also investigating a possible sewage discharge near the Moa Point Treatment Plant on Wellington's South Coast.
On 26 January, Wellington Water were notified through social media of a "discoloured plume" in the Cook Strait near Moa Point that happened three days earlier.
According to a 'please explain' letter from Greater Wellington Regional Council - which is the regulator for water - it has asked Wellington Water what the cause of the plume was and if it is sludge, how much was released from the plant.
The regional council asked Wellington Water to respond to this letter by 9 February. RNZ has requested the details of this response.
Water shortage
The water committee will also discuss a letter sent Wellington Water and Wellington councils which asked them to come up with a plan to stop a summer water shortage, similar to what the council has faced this summer.
Over the past few months Wellington, the Hutt Valley and Porirua have been under water restrictions with the threat of more severe rules coming into force.
This has largely been due to nearly half of the region's water being lost through leaky pipes.
Taumata Arowai chief executive Allan Prangnell has penned a letter to councils and Wellington Water, saying they needed to change their plans to head into next summer with confidence.
The committee meeting starts at 10am on Friday.