Delays to a previously-agreed water pipeline upgrade have been criticised by Highlands and Islands MSP Rhoda Grant.
Scottish Water had confirmed upgrade works for the water supply from Tarbert to Hushinish.
But an increase in costs meant the company announced the scheme was shelved last month.
Ms Grant said the water supply was vital and there would be knock-on effects to plans for new housing and better broadband, which was to be installed with the pipe.
She said: “It’s shocking in itself Scottish Water is proposing this massive U-turn, which will threaten the prospect of new housing being built along the route, but also for their chief executive to say to me they will satisfy the tourist demand in the area by sending in tankers of water in the summer.
“Not only has the Scottish Government-owned Scottish Water done a U-turn on the vital works that were to bring the existing consumers a more reliable service and one of a comparable quality with Tarbert, they have also closed an avenue that could have provided high decent broadband provision into the bargain.
“It is simply an insult to the community.”
A Scottish Water spokesman said plans were progressing.
He said: “A constructive meeting took place last week with local stakeholders as part of the review we are carrying out into investment options for this part of North Harris.
“All of our work is funded by our customers and by public borrowing, so we have to ensure we deliver value for money and address the objectives agreed with our regulators and with the Scottish Government.
“Our review is considering all feasible options, including whether more localised investment can meet the needs of customers in North Harris by maintaining or improving existing good quality sources of water in the area.
“The possibility of installing fibre optic cable alongside the proposed water main had been raised with us last year and we indicated we would be willing to explore this with any interested broadband provider.
“No broadband provider or group had pursued this and so there was no plan to lay fibre optic cable as part of the project.”