"I hope the government does follow through on its promise to 'work with councils and ensure that local participation is evident in the critical next phase'," McDouall said.
"As legislation goes through it may be that a select committee process is the only opportunity for the public to provide feedback on the reforms."
In August and September, the council assessed the model and what it would mean for Whanganui, received feedback from the community and forwarded questions to the government about the proposals.
"Along with many other councils, we consistently said we wanted more time to consult with our community on these critical decisions. I am not satisfied that today's announcement provides all the answers we need and I'm sure the people of our district will feel the same way.
"There are still questions to be resolved. For example, we sold community assets including some forestry assets to help meet the cost of our new wastewater treatment plant. Will we be compensated for this?"
McDouall said he was concerned there hadn't been any clarity on how the new structure proposed to meet the requirements of the Te Awa Tupua Act
"And if our Three Waters are administered from another centre, how will we ensure our local voice is heard and that the entity will be responsive, and appropriate investment is made in Whanganui?
"One of the most valuable things about local government is its connection with communities and its direct accountability to the public and we still believe that the best decisions for any locality are those made locally."
The government estimates up to $185 billion is needed to upgrade New Zealand's water services over the next 30 years to ensure that critical water infrastructure meets standards.
"I understand that the status quo is not an option, but Whanganui District Council has always been clear it wanted the best outcome for Whanganui – for our people and our environment," McDouall said.
"We have invested in our Three Waters infrastructure so we are well ahead of many other territorial authorities in this respect, so we will want to be appropriately compensated and to be part of all consultative processes as the reform continues."