The plan requires residents to either upgrade their existing sewerage system to an advanced nutrient removal system, apply for a resource consent to allow them to continue using their existing system, or connect to a community sewerage system.
The regional council OSET plan is designed to stop nutrient from leaching into the lake, further degrading lake water quality.
"The good thing about this is that about 90 per cent of Tarawera residents are very keen for a new system to go in," she said.
"But at this point in time we have no funding for subsidies for that area."
She said subsidies were calculated on the socio-economic conditions in the area but that should not come into consideration when it came to protecting the district's lakes.
However, anyone connecting to a new system would automatically be entitled to a district council subsidy of $1500 and councillors would lobby both central government and the regional council for further funding.
Mrs Searancke said she felt the best option for residents would be to install low pressure grinder pumps that would take sewage to the main truck line at the Blue Lake and then on to the city's wastewater treatment plant.
She said a public meeting would be held on Labour Weekend when many out-of-town property owners would be available to discuss the proposed plans.
THE OPTIONS
Low Pressure Grinder Pump via Tarawera Rd - $27,000
Low Pressure Grinder Pump via Playne's Farm - $24,500
Conventional gravity system via Tarawera Rd - $44,000
Conventional gravity system via Playne's Farm - $42,000
Upgrade existing to advanced nutrient removal systems - $15,000 to $25,000
* Figures are for individual properties exclusive of GST