Mosgiel resident Alistair Grant approached the Mosgiel Taieri Community Board last month arguing the cemetery should be expanded and reopened.
The cemetery was closed to burial plots in 1997 and ash plots in 2005 and he believed having no cemetery in Mosgiel was "absurd".
Unused adjacent New Zealand Transport Authority (NZTA) land, originally set aside for predicted alterations to State Highway 1 but no longer required, was a good option for expansion, he said.
At a meeting this week, the board received a memorandum from council botanic garden and cemeteries leader Alan Matchett regarding the East Taieri Cemetery Trust, a fund which was transferred by trustees to the council in 2008.
It contained more than $28,000 from burial fees and donations and he suggested it be used to improve the aesthetics of the cemetery, with items such as ornamental fencing, new gates and seating.
However, city councillor Syd Brown suggested that before money was spent on upgrades, it made sense to find out if those funds could be used to buy land and expand the cemetery.
Mr Matchett was asked to prepare a feasibility report, which he said would require "a lot of considerations" including landowners, access, and "the high water table".
"Anything is possible. We have to look at the big picture," he said.
He did not know how much the NZTA land was worth and was unsure how long his report would take to compile because many people needed to be consulted.
Mr Grant was "really pleased" it was being prepared as he had received "nothing but positive feedback" for his idea.
On the issue of flooding, he believed there were ways to resolve the problem.
Chairman Bill Feather said the board had "an open mind" about the cemetery's future.
"The public have come to us asking us to investigate the case and this is the response," he said of the report.
