Administrators have revealed that a small outback SA council spent $1 million on legal fees in four years.

Coober Pedy, a town of 1,700 people, was managed by a highly dysfunctional council until it was placed in administration over a year ago.

The government-appointed administrator now running council operations and decisions says most of Coober Pedy Council's immense debt stems from an electricity deal that it entered without a competitive tender process.

The council also spent a lot on legal fees.

“Our legal bills over the past four years have been close to $1 million, very significant for a small council like Coober Pedy,” says council administrator Tim Jackson.

The two last legal issues the council was involved in ended up in the South Australian Supreme Court.

One was a planning-related matter that went before the courts just a week before the administration period began.

“In the second or third week I was here, we had a major data breach,” Mr Jackson said.

The breach saw classified documents made available to all councillors. Some accessed them, leading the council to seek assurances that the documents would not be retained.

“One wasn't prepared to give us that assurance and as a consequence we ended up before the Supreme Court,” Mr Jackson said.

A permanent injunction was imposed, and the council was awarded legal costs.

Mr Jackson said Coober Pedy Council was tied up in in legal issues for several years leading up to the administration.

“The council's just been embroiled in legal matters, as part of the council's operations over the past five years,” he said.

One of the ongoing issues is that Coober Pedy Council manages its own water system.

Authorities are now pushing for the South Australian Government to take control of the ageing water system.

“SA Water representatives are assessing local water infrastructure and continue to work through this process,” a government spokesperson said.

South Australian Local Government Minister Stephan Knoll says Coober Pedy Council will remain in administration.

“My mind remains open on how long the administrator stays there,” he said.

“I know that the councillors that we elected remain engaged.

“My focus, as I know is Tim Jackson's focus, is merely what's the best for Coober Pedy and for the council.”