The move comes as councils in the region try to establish how they might best operate amid burgeoning costs.
Central Otago District Mayor Tamah Alley said the two councils were leading the charge in tackling the complex issue of water services as a region.
"Gore and Central Otago can show what’s possible when councils work together," Ms Alley said.
"This isn’t just about ticking off government requirements — it’s about building a future-focused, sustainable model for our region.
"This will be a huge conversation for our communities, and we need to have the best options possible out for consultation."
Gore District Mayor Ben Bell said there was community concern about rising costs.
"As it stands, water costs are projected to increase five-fold in the Gore district by 2034," Mr Bell said.
"This is simply unacceptable and it’s why we’ve taken action to get the ball rolling."
The proposed collaboration was built on extensive financial modelling and it could be delivered at pace, Mr Bell said.
"We’re excited to work alongside Central Otago District Council and look forward to other councils joining us.
"Together, we can make a real difference for our communities," he said.
Southland MP Joseph Mooney said the partnership between the councils was an example of the government’s model in action.
"I welcome the news that Gore District Council and Central Otago District Council will partner together to deliver water services in the southern region, and I echo their call for more councils to join forces."
Dunedin city councillors were this week less enthusiastic about the possibility of regional co-operation taking the form of a regional council-controlled organisation.
The council approved a shortlist for analysis and the options on it were continuing to deliver water in-house, setting up a council-controlled organisation for the city and being part of a multi-council entity.
A staff report had referred to a regional multi-council council-controlled organisation, but councillors changed this to entity.
There was some discussion about the council being potentially not interested in pursuing a firm regional structure while leaving open co-operation opportunities such as shared service delivery.
In the end, the council kept a multi-council entity on the shortlist.
Deputy mayor Cherry Lucas said the council should keep its options open and Cr Kevin Gilbert said councillors should not look to prejudge the matter.
