Treasurer Peter Gutwein said the legislation prevented TasWater from being privatised, establishing it as a government business enterprise and taking control away from the 29 councils that presently own it.

The legislation keeps TasWater’s financial returns to local councils at the current rates during the transition period between July 1, 2018 and June 30, 2025, after which councils will receive 50 per cent of profits.

The draft legislation is already subject to a parliamentary committee in the Legislative Council that is open to public submissions.

“This is an opportunity for anyone who has a view to have their voice heard,” Mr Gutwein said.

Local Government Association Tasmania president, mayor Doug Chipman said he was still waiting to see terms of reference for the parliamentary inquiry.

“We’re certainly looking forward to seeing the legislation tabled so we can talk to the members of the Legislative Council about our concerns, first and foremost of which is the legality of it,” Cr Chipman said.

A TasWater spokesperson said the legislation was “a disgraceful attempt by the government to pervert due process”.

“The legislation threatens to financially penalise councils should TasWater challenge the takeover,” they said.

Opposition Leader Rebecca White said there had not been enough time for public consultation.

“There are not the protections there in this bill that we would like to see that those things the government says are actually true,” Ms White said.

Submissions can be sent to two@parliament.tas.gov.au.