She said she has yet to receive a response from the Auditor General.
"It is with regret that I must decline to participate in any discussions or decisions regarding the RWSS until such time as I receive a decision from the Auditor General confirming it is appropriate for me to participate in such discussions or decisions."
A spokesman for the Office of the Auditor General confirmed they had received an application from Mrs Hewitt under the Local Authorities (Members' Interests) Act to take part in decisions about the dam.
"We are aware of the issues regarding Cr Hewitt's potential conflicts of interest," he said.
"We are working through these issues with the Council and Cr Hewitt, and we are currently waiting for some further information to support her application."
He said it was not appropriate for the office to comment any further.