John Breen said the 2307m peak was among a cluster in the Hector Mountains, all unnamed, which could be seen from throughout Central Otago.
He said the opportunity to enhance the district's illustrious gold mining history was too important to pass up, and encouraged residents to make proposals to the New Zealand Geographic Board.
Mr Breen had been considering possible names for the peaks for years, although the issue recently came to light when a Cromwell man suggested the highest peak be named Hillary Peak.
Cromwell Community Board member Gordon Stewart is one of four people to have submitted a formal proposal to the board to name a geographical feature after Sir Edmund Hillary.
Mr Stewart said he received support on the proposal from Sir Edmund's widow, Lady Hillary, who last year wished him good luck.
More than 70 people have formally submitted in support of the peak being named Hillary Peak, while four opposed it.
Mr Stewart's idea was questioned by Mr Breen, who said, while the naming of a peak after Sir Edmund was noble, a more appropriate name for the Hector peak could come from the district's gold mining history.
"If you want to be picky about it, Sir Edmund didn't have a lot to do with this area.
"Good views of the peaks come from the Manuherikia area and Ida Valley . . .
"I've had those peaks named in my mind for a long time and I think there needs to be public debate about it," he said.
Mr Breen said the peak could be named after a "famous" Bannockburn dredge, the Lady Ranfurly, which had high gold returns, or even Old Cromwell, which was partially lost to lake Dunstan when the Clutha was dammed for hydro electricity generation.
He said other appropriate names included Hartley and Reilly, well-known gold mining identities in the district.
"It's a good opportunity to enhance the gold mining heritage of the whole Central Otago district," Mr Breen said.
He had not made a formal proposal to the geographic board, but said he was prepared to "put my money where my mouth is" and lodge one.
A closing date for nominations is likely to be in 2010 when the board will meet and notify the public of its preferred proposal, after which it will be open for public consultation
