An economic working group comprising representatives from Otago's six councils has worked with the Ministry of Business, Innovation and Employment (MBIE) to develop the Otago Regional Economic Development Framework.
The framework aims to help the councils work together to identify strategic priorities and projects to deliver economic development across Otago.
That includes finding areas in which the councils can co-operate to increase productivity, access and retain talent, improve housing and the sustainable use of the region's assets.
A report on the framework, to be considered at next week's Dunedin City Council meeting, confirmed the regional approach could be supported with funding from the Provincial Growth Fund.
A letter from Fletcher Tabuteau, the Parliamentary Under-Secretary for Regional Economic Development, confirmed each region was eligible for $200,000 per year for two years to support such initiatives.
The regional working group had already prepared an application to the PGF for the funds, the report said.
The money would pay for two new advisers to help implement the new approach, one based in Central Otago and the other in Dunedin, covering inland and coastal Otago between them.
Enterprise Dunedin economic development programme manager Fraser Liggett said the application outcome was "subject to a wider Wellington decision-making and timing" process, which he expected would take about two months.
One regional economic development project was already under way - a construction labour forecasting project, looking at projects and the types of industry skills needed across Otago - and work on other specific projects was getting under way.
"These proposals will be further worked up throughout the remainder of the year."
The framework has already been endorsed by the Otago Mayoral and Chief Executive forums and presented to the Clutha, Queenstown Lakes and Clutha district councils, as well as the Otago Regional Council.
The DCC and Waitaki District Council would both consider the report at meetings on Tuesday.
