"Rentals are running out of water and it's costing people a lot of money."
Thames Coromandel District Council has stopped bulk water suppliers accessing the Whitianga supply, which is closer to many beach settlements. Estimates show there are 8000 houses on tank or bore water in the district.
Mayor Sandra Goudie said it was common sense that water should come from Thames, which has an assured supply.
"If you want water we're not going to compromise the Whitianga water supply so they do have to get it from Thames ... the only other major supply is in Thames where the draw-off isn't the same, so it's logical but it's expensive."
She said it is also part of the cost of doing business for bach owners.
"It has been very dry and not only that we've got peak population well in excess of the resident population. We've got record numbers at the beach and they all want to use water and people get used to wanting to pour it out of the tap ... and our water systems can't cope with that in a number of areas."
-RNZ