The Central Otago District Council will today decide whether to help fund a $160,000 study into an alternative water supply for Alexandra.
A request for at least $40,000 has been made by the Manuherikia Irrigation Co-operative Society, which plans to commission Opus International Consultants to undertake a feasibility study on a proposed Lake Dunstan water scheme.
The Otago Regional Council has pledged up to $80,000 for the study, providing the remainder of the funding is secured.
The society plans to provide $40,000 for the feasibility study and needs the remaining $40,000 from the council.
In a report which will be tabled at a council district development committee meeting in Alexandra today, council business development manager Jonathan Gadd has recommended the CODC spend $20,000 on the project.
Mr Gadd said the Vincent Community Board should then consider funding the remaining $20,000, at its next meeting on May 11.
His report said the proposed Lake Dunstan scheme would effectively replace the Manuherikia and Galloway irrigation schemes, with potential to provide a new source of potable domestic water for Alexandra, Clyde and Springvale.
Mr Gadd said the council was looking into an upgrade or replacement of Alexandra's water scheme.
"Regardless of the outcome of this feasibility study, it is likely that the inclusion of the Lake Dunstan water scheme will result in a stronger outcome for the community of the Vincent ward. Given this, it is most appropriate that funding of this component be determined by the community board rather than at a district level."
Society board vice-chairman Gary Kelliher said serious issues were facing all irrigators who took water from the current scheme.
He said in future there was likely to be less available flow for irrigation at the lower end of the Manuherikia Valley and more demand for storage.