The irrigation and hydro-electric power-generating potential of sites inland from Dunback is back on the radar.
An investigation in 2006 decided a dam on the river would be uneconomic but a meeting last week, attended by 45 people, resolved unanimously to investigate harvesting water from the Shag River.
Dunback hotelier Don McLenaghen, who organised the meeting, said setting up a small power station on the river was being considered.
A dam was investigated at Pinesite, inland from Dunback, in June 2006 but it was considered too expensive, with irrigation costs estimated at between $10,000 and $10,500 a hectare.
A proposed hydro-electric power station at the dam was considered by TrustPower to be uneconomic but both options were being re-investigated by engineers, Mr McLenaghen said.
