Almost 10 years after scrapping a similar service, the Otago Regional Council is investigating the possibility of bringing back a central city bus loop.
The council confirmed yesterday it was conducting a "high level" feasibility study of a central city bus loop service.
In a statement, council support services manager Gerard Collings said the council expected the study would be completed in about two months.
When asked if the service would be free or greatly subsidised, Mr Collings said because the study was still ongoing he could not confirm how any service would be funded, or any other details.
The study would give the council a better understanding of the feasibility of a service in the city the size of Dunedin, he said.
In 2009, the council abandoned a city loop bus route after 17 months because it only attracted, on average, just over one person per trip at its peak.
The 17-month trial cost $405,000 and was funded by the council and the NZ Transport Agency. Bus Users Support Group Otepoti Dunedin co-president Alex King said a central city loop was not something the group had pushed for but any enhancement to current service was supported.
Changes to the bus system in the past 10 years would probably make a new inner-city loop more successful, Mr King said.
"People will be able to come in and hop from one part of the city to another, which could be quite handy."
In some other cities, central city bus loops were free or subsidised and were well used, he said.
"Depending on where the loop might be placed, people could drive in, park their car, get on the loop and then do the reverse."