They put a proposal to NSW Planning Minister, Bob Carr to use these boats in a new and novel way. They proposed a series of Botel Marinas in close proximity to lucrative poker machine venues along the NSW banks of the Murray River. They received unanimous local support for this idea. Soon after having bought 34 prefabricated steel pontoon components and the the two kit homes, the local council and seven government departments reneged.
Waterhouse could have built and sold the houseboats as originally planned. However, Carr deliberately and maliciously maladministered the project. A number of politicians lied about the vessels in the NSW Parliament. They had the backing of local newspapers and they often misreported the project. TV8 presented a deceitful Special Newshour Report. Waterhouse lost their home and life savings.