The introduction of kerbside organic collection bins and a composting facility - originally proposed for 2013 - has been put up for review next year.
Queenstown Lakes District Council solid waste manager Stefan Borowy told the Queenstown Times it would be considered as part of next year's Long-Term Plan (LTP) process.
The council's community plan 2009-2019 proposed that from October 2013 households in urban areas would receive a small bin and a supply of biodegradable bin-liner bags for food waste.
They would also get a 140 litre wheelie bin, to be emptied once a week, for collection of the bags and green waste.
It was estimated to cost $750,000 per annum, with the organic waste to be composted at a new composting facility requiring $3.9 million capital plus $500,000 per annum.
Originally proposed for October 2010, the council chose to defer the project.
The review is just one aspect aimed at boosting efficient resource use in the QLDC's waste management and minimisation plan, which was adopted at Friday's final council meeting for the year.
Mr Borowy's report to the council said the previous waste management strategy in 2003 was successful, and among achieving most targets, created a shift in waste diverted from landfill from 10% in 2006 to 29% in 2011.
He said the key thing in the organics review was ensuring any solution would be affordable to the community, which might mean the difference between a council or privately-owned facility.
"The first stage is to measure costs as much as possible and, if it's created, to do it in the most affordable way."
As part of the LTP process, it will undergo review early next year and be considered by councillors before appearing in the draft LTP.
The public will then have the chance to give feedback on the plan before it returns to the council for auditing, to potentially take on some suggestions and be adopted in June.
