A relocated water reservoir at Omakau should provide the town with better water pressure and an increased capacity for the future.
The Central Otago District Council's reservoir tanks behind the Omakau Catholic church were cracking and needed replacement, CODC planning and environment manager Louise van der Voort said.
Rather than upgrade the old tanks, which could not take any more water, the council decided to relocate the reservoir to part of the Omakau Recreation Reserve, she said.
The proposed site was closer to the town, with better elevation, which would provide better water pressure, she said.
The council has applied to itself for land-use consent to establish a water reservoir comprising six interconnected 30,000 litre tanks, on the ridge immediately to the southeast of the Omakau Golf Club.
Tanks would be visible and protrude on the skyline when viewed from roads in and around Omakau, as well as from some parts of the Otago Central Rail Trail.
Submissions on the proposal are being sought before June 26.
If the matter proceeds to a hearing, an independent commissioner will be appointed.