MERGING Tasmania's three water corporations could be the first move from the state government to privatising water, according to West Tamar resident Geoff Dickinson.
Mr Dickinson raised his concerns at the West Tamar Council's annual general meeting in November.
The thrust of his argument was that the council should be wary of the move to water and sewerage amalgamation.
He also asked whether the council would regain $17 million lost in an asset transfer to Ben Lomond Water in 2008.
"I asked the state auditor general if he had the formula re- evaluations detailed for the re- value or devalue of (West Tamar) council assets that were transferred to Ben Lomond Water," Mr Dickinson said.
"He advised me that he could not even tell me if he had the knowledge of such a formula as he was required by law to not provide to anyone such detail, unless asked by a politician at a suitable government estimates situation."
He asked the councillors to approach a politician to "find out how we evaporated $17 million".
"Personally I do not support the amalgamation of any further water bodies as the ultimate outcome is probably the sale of them by privatisation - water you do not sell," Mr Dickinson said.
West Tamar mayor and Local Government Association of Tasmania president Barry Easther said they were expecting reports from the Local Government Association of Tasmania chief executive on how a single water and sewerage authority would be run.
"That work is expected to be available for distribution to owner councils within the next 10 days," Cr Easther said.
"At the same time the work on a possible governance level will also be sent out to owner councils for their consideration.
"What happens after that has not been established, but obviously it will be the December meeting of councils that would be the earliest that those two documents could be considered."
He said a decision would not be reached on the process until January 2012.