The dam was built on Bridge Hill, Alexandra, in 1909 to supply water for gold-mining and its future management will be discussed at a Vincent Community Board meeting on Monday.
Complaints from residents about the amount of raupo in the dam and the lack of water in nearby Lanes Dam, which is fed by Aronui, were the catalyst for the discussion.
Central Otago District Council parks team leader Ian Mann has recommended the Aronui Dam Conservation Area, at present managed by the Department of Conservation, be vested in the council's stewardship.
Doc managed it as a conservation area, which was different from the way it would be managed as a ''high amenity area'' under the council, Mr Mann said.
The council had an easement in place to source water from the Aronui Dam to supply Lanes Dam.
''Local residents and the Jolendale Park Charitable Trust, who maintain an area of approximately 1.5ha directly adjoining the Aronui Dam, value this area as a unique and important open-space area within the Alexandra township,''
Mr Mann said in a report to the board.
Those people were ''increasingly frustrated'' by what was perceived as a lack of ownership or commitment by either Doc or the council in controlling raupo and preserving the amenity area.
If the council took over responsibility, it would enter into a management agreement with the Jolendale trust to carry out any maintenance the trust thought was needed to enhance the amenity value of the dam area for the benefit of the whole community, he said.
Residents in the area had donated $5000 for maintenance work on the dam and raupo clearing would be carried out over three days in late December.
Mr Mann said more investigation would have to be carried out on the structural integrity of the dam wall, before the council took responsibility for it.
Doc records showed that after the Aronui Dam was no longer needed for gold-mining, it was used to store water for the town.
In more recent times, it had been used as a water source for Lanes Dam, which was ''a high-valued recreation area'' under council management, Mr Mann said.
