Southern councils have been discussing the need for the South Island to work more collaboratively for about a year and have now proposed the formation of the "South Island Strategic Alliance" (SISA).
At a combined meeting of Local Government New Zealand zones 5 (upper South Island councils) and 6 (lower South Island councils) last month, the concept was endorsed in principal, along with a terms of reference, which it recommended councils adopt.
Tasman Mayor Richard Kempthorne told that meeting there was general "very strong support" for the proposal and no opposition.
It would go to all 27 South Island councils, including the Christchurch City Council, although Mr Kempthorne admitted it would have the least to gain from the alliance because of its size and other issues it was dealing with.
The terms of reference will be considered by the Otago Regional Council at a meeting of its finance and corporate committee tomorrow.
Council corporate services director Wayne Scott recommended the council endorse and adopt the proposed terms of reference for the alliance.
A report to the meeting said the grouping would be a "coalition of the willing" rather than any structured governance or management structure. Its membership would be mayors, chairmen and chief executives, or their delegates, of South Island councils.
It would meet twice a year and each council would fund its own participation.
"It is simply an opportunity to advocate for councils in the South Island on key issues."
SISA would have no decision-making authority but might make recommendations to central government after developing agreed positions on matters of national importance and major Government initiatives.
Its main aim was to "maximise sustainable development opportunities" for all of the South Island including investigating opportunities for achieving cost efficiencies by sharing responsibilities and services, through one-stop shops and centres of excellence.
Other objectives were to recognise and utilise the strengths of each region for the "greater good" of the South Island and New Zealand as a whole and help co-ordinate and encourage beneficial inter-relationships and connections between economic activities or services across the alliance and, the terms said.
Its benefits included the opportunity to decrease service costs, a stronger voice on central government issues, more efficient administration of local government legislation and sharing of specialist or professional services "strengthening the autonomous role of individual members within the alliance".
The Ashburton District Council had approved the terms and other councils were expected to consider the terms in the next few weeks.