The Central Otago district in New Zealand will have to spend NZ$7 million (£2.6 million) in order to upgrade its water quality to new national standards.
According to the legislation, water supplies in the district will have to receive ultraviolet light treatment in order to meet new requirements, the Southland Times reports.
The Health (Drinking Water) Amendment Act states this must be achieved by July 2012, with the district able to apply for subsidies from central government.
A report published last year found it would cost a further NZ$6 million to rid the local water supply of lime, which is not included under the new legislation as the presence of lime is not a health and safety issue.
Earlier this month, New York governor David Paterson claimed New York required $50 billion ($£28 billion) investment in its water and wastewater infrastructure to help maintain lakes, rivers and streams in the state.
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