Business owners in Havelock North are sacrificing sick pay and holiday pay for their staff, just so they can stay open.

The Government and Hastings District Council will decide today how to divvy up $200,000 for businesses struggling after the water contamination crisis.

Joanie Williams from Origin Earth said they've had to spend $6000 on their own UV water treatment plant so they can keep making their dairy products.

"We just got forced to bite the bullet, either close the doors or do something practical to help ourselves."

However, she said it comes with a major sacrifice for her 22 full-time staff.

"I can only meet payroll if I don't pay sick pay, or holiday pay to any of my staff. Otherwise there just isn't the money to do it."

Joanie Williams said she's also gone into default with her business property rent, and they've already lost more than $30,000 from the water contamination.

Speaking to Mike Hosking this morning, Prime Minister John Key said it's yet to be determined if the council was at fault, but sometimes things happen to businesses that you just can't get compensation for.

He adds a technicality was the reason the region didn't instigate a state of emergency, which could have provided more insurance cover for businesses.