The Royal Albatross Centre will put to the side a neighbourly water squabble and potentially spend millions on a tidal-powered desalination plant.
The centre last year trucked in more than 700,000 litres of water for its operations, which cost about $35,000.
It was largely used for flushing toilets and drinking water.
Historically, water was supplied by its neighbour, tourist venture Natures Wonders, but this was cut off 16 years ago.
The two operations are in dispute over whether a Dunedin City Council agreement for Natures Wonders to supply the centre with water still applies.
Taiaroa Head operations manager Hoani Langsbury said with the desalination plant project it could ''move forward''.
''That [the dispute with Natures Wonders] has still got to be dealt with, but at the moment we're just getting over it.
''It's better just to worry about our own solution and we'll just put that to the side.''
The plan was for a small 2.8m-long, 2.5m-high plant to be installed slightly around the coast from the blue penguin viewing platform at Pilots Beach.
This would take trucks off the road and create ''probably the best water in the city from really clean salt water'' at the bottom of the cliff, he said.
This project would initially cost between $380,000 and $480,000 and be powered off the grid, he said.
However, there were plans to create a tidal-powered electricity generator just off the coast to power it.
It would probably cost between $1million and $2million, Mr Langsbury said.
''The long-term goal is for a self-powered plant. It's good environmentally and ecologically and fits really well with the ethic of the Otago Peninsula Trust.''
The concept was in the early stages, but members of the trust had spoken to engineers.
Even if the council decided its neighbour was required to give the centre water, this would not meet its growing requirements, he said.
''The makeup of the water has high magnesium and iron, so would need to be conditioned anyway.''
Recent hot weather slightly increased the amount of water the centre needed, as on hot days the albatrosses were sprayed with water.
The desalination plant would need consent from various agencies but could be in operation by the next high tourist season.
