The need for an upgraded water supply has placed the brakes on further development at the Alexandra airport.
In a report to today's Central Otago District Council meeting, council property and facilities manager Mike Kerr recommends a new water supply for the airport.
A new and reliable water supply was needed to allow resource and building consents to be granted for commercial hangar and hangar/apartment development, he said.
The current water supply was from a bore that provided only a ''minimal flow'' for the terminal's ''modest needs'', Mr Kerr said.
In May, the council was told the airport was on the cusp of a bright future but up to $500,000 needed to be spent to realise its potential, which the council approved in principle, aiming to have the airport self-funding.
Mr Kerr's report this week said increasing interest in building hangars meant an upgraded water supply was important.
A $45,000 bore on airport land pumping water to tanks at the terminal for hangar owners to draw from was one of the three water supply options.
A $51,000 bore beside Airport Rd pumping water to tanks was the second option and the third option, recommended by Mr Kerr, was connecting to the town supply, 3km away on Dunstan Rd, at a cost of $54,000.
A connection fee and water connection availability fee could be charged to hangar owners. Hangar owners had indicated they would contribute more than $10,500 and if 14 more hangars were built, the capital cost of the water supply would be fully recovered.
''Confirmation of an adequate water supply will enable ongoing development and rental income growth,'' the report said.
