Currently the council makes $107,000 in dividends from Ben Lomond Water.

The reason for the potential $432,000 revenue boost comes from the way the funds will be distributed after the 2013-14 financial year.

The beginning of this period will see the end of priority dividends given to councils which made a profit from their water and sewerage and the start of an asset based dividend - in line with an asset transfer deal made in 2008, when control was given to the three governing bodies.

Councils will no longer be paid according to how much they made from their facilities and will, instead, gain revenue from the value of facilities transferred to the water and sewerage bodies - Ben Lomond Water in the North.

The end of priority dividends will cause a leap from the council's $107,000 to $344,000 in the 2013-14 financial year.

If predictions are correct and the proposed merger does save $5 million in water and sewerage governance costs then councils will see another increase to $539,000 on their asset-based revenue.

The Northern Midlands Council has been a supporter of the move which has caused controversy within some councils, which stand to make a loss from the process.