Ongoing negotiations over the future of the Wide Bay Water Corporation threaten the reputation of the entire region, according to a local MP.

The state member for Maryborough Anne Maddern says there needs to be some resolution on the situation. A situation has unfolded after the Fraser Coast Council made an attempt to save $4 million by taking over the local water body last November. The buy-out failed when the Queensland Treasury revealed council would not be exempt from a $65 million stamp duty.

Ms Maddern says there will be economic impacts if it is not sorted soon: “It is impacting, I mean if you have a developer or investor looking to come into our community, and we desperately need those people, what is happening between the Wide Bay Water and the Fraser Coast Council does not instill a great deal of confidence in a potential investor and that concerns me greatly,” she said.

Fraser Coast Mayor Gerard O'Connell says the bid is still on, he’s only waiting for word from the Treasury, saying “what we've seen is the Treasury taking a different view at this point in time... we've asked them to consider it, I'm waiting to hear back.”

Wide bay Water is charged with supplying water and sewerage services to the Fraser Coast region, maintaining the health of Lake Lenthall and running the WetSide Water Education Park, among other duties.