Akaroa residents fear their home will be known as 'Poo Bay' if the Christchurch City Council decides to discharge treated wastewater near where they live.
The residents met at a hearing on Tuesday over the upgrade of their wastewater system.
The town's treated wastewater is currently pumped into the harbour and the system needs improvement.
"It is old and in a historically and culturally sensitive place and needs to be rebuilt and relocated," the Christchurch City Council said.
The Council offered four options for the wastewater disposal scheme and asked for submissions from the public.
The options include a longer ocean outfall pipeline into the harbour or three land-based discharge options, including in Robinson's Bay where Chris and Annette Moore run a bed and breakfast.
Between July 21 and August 23, the council received 341 submissions with 70 people asking to be heard over four days.
"This inner bays option, if it becomes a reality the chances of getting true value for 15 years on investment in our business and property is nil - that's the reality for us," Chris said.
"We are concerned that Robinson's Bay will become known as Poo Bay," Annette added.
The Moores say if Robinson's Bay is chosen the wastewater storage ponds will be built 100 metres from their house.
Suky Thompson, Robinson's Bay community member says she wants to see the wastewater treated to the point it's drinkable.
"Akaroa has terrible drinking water shortages every summer," she told Newshub.
"And what we want to see is our wastewater treated to that standard where it is scientifically and culturally acceptable for it eventually to go back into the supply."
A decision on what to do with Akaroa's wastewater is expected by the end of the year.