A $2.5 MILLION water treatment plant for Mole Creek will make up part of TasWater's push to remove boil water alerts from the state.
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The treatment plant was initially met with resistance from members of the Mole Creek community, some of whom raised concerns about chemicals in the water supply.
Meander Valley Mayor Craig Perkins said although there were still come concerns surrounding the development, he believed TasWater followed compromised with consultation.
"There was (resistance) and TasWater worked with the community to come up with an alternative solution," Cr Perkins said.
"I understand that was going to take less capital investment to get it going."
Cr Perkins said some residents indicated they may still draw water from the area's streams, but the water body was bound to follow through with works.
"The Department of Health requires treating drinking water to go into towns, TasWater had to put it in," he said.
"There were views on different systems and bits and pieces that could have gone in - like filters and the like - but they were not acceptable under TasWater requirements.
"It's fair to say some people in Mole Creek are of the view that it shouldn't go ahead, or other alternatives should be considered, but at the end of the day I think they struck a good balance."
The approval for a shed to house the infrastructure was passed through council last year.
There are 25 Tasmanian communities, including Mole Creek, on "boil water" alerts.