Tasmanian councils are spending tens of thousands of dollars campaigning against Treasurer Peter Gutwein's plan to take over TasWater.

The Government plans to take control of the council-owned water and sewerage body, something TasWater says may not be lawful.

Mayors stood against the proposal at a recent Local Government Association of Tasmania (LGAT) meeting, moving instead for an advertising campaign aimed at ratepayers.

“It's very important that the ratepayers, who have paid for the infrastructure, have the full side of the story and the full facts as to why councils are voting against Peter Gutwein's hostile takeover bid,” Break O'Day Mayor Mick Tucker told reporters this week.

“There are many ways councils can get the message out, whether it's newsletters we publish or on social media.

“I think the Government has made a grave error of misjudgement in the takeover, I believe the people of Tasmania know when something doesn't add up.”

Meander Valley Council Mayor Craig Perkin said the campaign would not be a personal attack against Mr Gutwein.

“All we want to do is make sure ratepayers are asking the same questions of the Government that we're asking and allow the true facts to come out,” he said.

“We can't say to our community whether it's a good thing or not.”

The Government says councils should not waste ratepayer funds.