Mayor Jason Smith said the balance tank was a necessary part of the wastewater system.
"This balance tank has been planned for some time. We've been waiting until we needed the additional capacity before we built it. That time has now arrived."
KDC has recently developed a model of the wastewater network so growth scenarios can be simulated and plan and prioritise interventions within the network.
It is also finalising a long-term strategy for the overall scheme, including network, treatment plant and disposal area, outlining the sequence of steps needed to continue to increase the capacity of the scheme.
As part of this strategy, KDC is also investigating the expansion of the disposal systems by using the treated effluent on the Mangawhai golf course. A design and rough order of cost have been completed and details are available on the KDC website.
The balance tank will be funded by growth, through development contributions, and partly by current users, though loan and depreciation reserves.