The Government has developed the $2 billion 'Better Off' fund as part of Three Waters reform to help pay for projects which help build resilience to climate change or natural hazards, enable housing development or support community improvements.
Before making a decision, the council consulted the community on whether to apply for the funding with the majority of people who answered the survey being in favour.
Waipā District Council, alongside Matamata-Piako, South Waikato, Ruapehu and Thames-Coromandel District Councils are part of local government action group Communities for Local Democracy (C4LD) and together strongly oppose the reform.
Waipā was advised that applying for money doesn't signal support for the reforms and that it can continue to oppose them.
Nonetheless, some councillors said when the decision for the application was made on Monday that opting to accept the money was difficult, given the council's position on the reform. Two councillors voted against the funding.
A further round of funding, including $15.73 million ring-fenced for Waipā projects, has yet to open.
Council has yet to decide whether or not it will be involved in the second funding round.