Councillors and farmers John Douglas and Margie Ruddenklau voted against the motion.
Eighteen Southland towns have sewerage schemes and the full sewerage charge would reduce by $115 per rating unit, but many farmers do not have sewerage connections.
In practical terms, a Tuatapere residential ratepayer, with a capital value of $125,000, will pay $108 less than they would have.
That ratepayer’s hike will be four percentage points less than previously expected, from a 19 to a 15 per cent rise.
The council is looking to increase its rate take to pay for an extensive bridge replacement programme and other ageing infrastructure.
Under the money redistribution move, a Te Anau residential ratepayer with capital value of $510,000, will save $86 on what had previously been proposed; from 10 per cent to a 15 per cent rise.