Nick Mosley said households would each have to fork out $1793.

That cost, he said, was simply too great for many people, especially young families.

North East Water decided last month to go ahead with a septic tank effluent drainage system, rather than sewerage connected to individual households.

Board chairman David McKenzie said construction was scheduled to begin soon, “in parallel with finalising the design and location of the treatment plant”.

Mr Mosley said he was concerned that some other towns in the region had to fork out just $800 to get connected to their new systems.

“That annoys me a little bit. The residents of Moyhu pay rates and taxes and then we have to pay for our own infrastructure as well,” he said.

“You can look on the internet and see that we’re a very, very low socio-economic place — there’s no Alan Bonds here.

“There are a few families with young children where mum’s still at home looking after them. And if they can’t find that money, what happens to them?”

North East Water spokeswoman Ann Telford admitted there was a disparity between Moyhu and schemes at Oxley, Milawa and Glenrowan.

Ms Telford said these three were funded through the state government’s Country Town Water Supply Sewerage Program.

“As part of this program, the Victorian government capped residential customer scheme contributions at $800,” she said.

“Moyhu was funded as part of the Small Towns Water Quality Fund based on a submission by the Rural City of Wangaratta.”

Ms Telford said the $1793 Moyhu connection was the same as a new customer charge when connecting to other sewerage systems in the North East, “and it compares favourably with servicing costs for new development areas in north-east Victoria”.

She said households could set-up a payment plan of up to 20 years.

“The lowest rate payable will be $38.65 per quarter over 20 years,” she said.

Ms Telford said North East Water had also got the Department of Health and Human Services to organise grants for concession card holders for the cost of plumbing connections to the scheme.

“We are planning to bring the DHS grant team to Moyhu to provide more detailed information and help people complete their application forms,” she said.

“We have partnered with the WAW Credit Union who have developed a special low interest loan for people who might struggle to pay their plumbing connections.”