An independent councillor says forcing developers to provide a water supply will impact the population of Kenmare.
Councillor Johnny Healy Rae was responding to a clarification by Kenmare Municipal District (MD) management that developers of multi-unit projects in the town must now also provide water.
He had called for planning to be granted for such housing projects, even if the would-be developer can't arrange an independent water supply.
Councillors were told the council may have no option other than to refuse planning permission for housing projects in Kenmare, if developers can't satisfy this condition.
Cllr Healy Rae says this will prevent homes from being built in Kenmare, resulting in couples being unable to settle down or raise families in the town.