The water supply to Alotau town is under threat following demands by traditional landowners of Goilanai.
Recently, the landowners forcefully shutdown a main water supply pump to town and called on the Milne Bay Provincial Government to pay, what they say, is an outstanding K1 million.
They claim the Provincial Government is delaying responding to them, to stop the due payment.
According to the Bebesiga Family, questions were raised over the piece of land where Water PNG Limited built water reservoirs to serve the township.
However the land was Gazzetted with Lands Minister, Benny Allen, imposing Compulsory Acquisition on the land.
Minister Allen then presented a payment of K1 million in May 2015 for land compensation; however the Bebesiga Family is still waiting for that payment.
The Bebesiga Family told EMTV News, they will shut down the whole water system if nothing positive happens.
They are also calling on the police fraud squad and anti-corruption unit to investigate the matter. They believe the money is currently parked in a trust account, with claims that a second party has the title to the land where the water project is built.
Meanwhile Water PNG has started water rationing for residents in Alotau town.
Residents told EMTV News, a 5 hour rationing schedule is being carried out in parts of the town.
With the closure of taps at the Goilanai bore pumps, the town is currently using water from the main reservoir tank from the top town reservoir.