An NT$370 million water-supply project for an aquaculture zone in Chiayi County has collapsed before completion — bad news for both the county government's finances and the fish farmers of Yizhu.

• The county government had planned to build a freshwater supply system to address over-extraction of groundwater and land subsidence in the Yizhu aquaculture zone, but the project was called off in the face of strong opposition from residents.
• Residents feared that the wide-mouthed wells used to draw water would endanger the levee and worsen land subsidence. They rose up in opposition after construction began, and the work was ultimately halted and the contract terminated.
• The root of the problem was that the county government failed to consult residents living near the water-intake point and build consensus before completing the design and awarding the contract.
• The cost of the halt was considerable: the construction contractor is seeking more than NT$6 million in compensation, and more than NT$10 million in central government subsidies has also been clawed back.
• The audit office identified five major shortcomings — including inadequate communication, failure to build according to the plans and drawings, and failure to terminate the contract in accordance with regulations — and called for a comprehensive review.

Outlook: The county government has decided not to re-tender the project and has completed the contract termination. In the short term, an alternative solution to the over-extraction of groundwater and land subsidence appears unlikely.