A proposed class-action lawsuit has been filed over the safety of a drinking water system near Penticton, B.C., as residents of the rural area prepare to vote Saturday on whether to foot the $33-million loan needed to repair it.

The Sage Mesa water system, which serves about 250 properties, is privately owned, but has been under the control of the provincial comptroller since 1990.

In recent years, the system has failed to meet basic water treatment guidelines set out by Interior Health, and approximately 60 homes are under a permanent boil water advisory.

The Regional District of Okanagan-Similkameen, which has been contracted out to run the system since 2009, said it has been approached by the private owner to take over the system fully, but it would require a referendum to authorize the loan to cover the cost of repairs.

In the regional district’s FAQ about the proposal, it estimates that federal and provincial grants could cover up to 75 per cent of the costs, but also note it has no sense of how likely it is those grants would be received.

If no grant money is received, residents estimate ratepayers would have to shell out around $1,200 a month each over three decades to pay off the loan.

“The $33 million divided by 242 people, borrowed and amortized over 30 years is just too much to handle. I mean, we will lose our house,” resident Nicole Clark said.

She filed a proposed class-action lawsuit in B.C. Supreme Court against the owner, Sage Mesa Co., and the province of British Columbia at the end of March. The lawsuit alleges the defendants have known about issues with the water system since at least 2012, and that failing to provide safe water breaches B.C.’s Drinking Water Protection Act.

WATCH | Residents worry about cost of water:

Sage Mesa residents face massive increase in water bills

Most people don’t rate their water bill as one that stresses them out. But for people living in a neighbourhood just outside Penticton, it’s another matter. A privately-owned system is sending people big bills to keep the water flowing. CBC’s Tiffany Goodwein has more on why they’re paying so much and the impact.

Clark told CBC News the potential cost to residents is so great, she’s delayed her retirement.

“I’ll be 65 [next year], my husband will be 70, we both will be continuing to work because without that employment income, after the mortgage payment and water bills, we will have about $600 a month for gas, groceries, dog food, all the things.”

She’s the sole plaintiff listed so far, and the class action has yet to be certified.

Clark said she doesn’t feel like she has any good options heading into Saturday’s vote. She said emotions from residents range from anger and frustration to fear and uncertainty. 

The lawyer representing the plaintiffs, Aden Thompson-Klein, said the province’s response has been that it won’t fund the repairs.

“They have a duty to repair it, they have a duty to provide clean drinking water for users, but their approach has simply been that they won’t do it and they are hoping someone else will,” he said.

The province told CBC News it could not comment on the situation as the matter is now before the courts.

The regional district said preliminary results of Saturday’s referendum will be revealed after 8 p.m. the day of, on its website and social media. Official results will be declared on April 15.