Clyde's growth has been stalled by the need for a sewerage scheme to replace septic tanks but residents need to say whether they want the town to expand.
''Those two matters have to be considered together. Does the community of Clyde wish the town to grow?
Those are separate but related issues,'' the Central Otago District Council's planning and environment manager Louise van der Voort told the council yesterday.
Council infrastructure services manager Jon Kingsford said the degradation in groundwater quality in and near Clyde was concerning.
Nitrate levels had increased over a short period of time.
''We don't know if that's a blip, a trend, or something else,'' he said. To fully understand the issue, the council needed to have a complete understanding of all the ''drivers''.
The matter was raised with the Vincent Community Board two years ago.
The board was told the quality could be degraded as a result of septic tank discharges and it resolved to explore wastewater management options.
A Clyde wastewater treatment plant, to be completed by 2027, costing about $13 million, is included in the council's long-term plan.
The issue was also discussed during hearings on the council's district plan review discussion document.
Seven Alexandra real estate firms joined forces then to support Clyde Claim Ltd's request for its land on the outskirts of the town to be zoned residential. Clyde was close to being ''fully developed'' within its current residential zoning, the submission said.
Ms van der Voort told the council yesterday the town's future wastewater needs and the performance of septic tanks would need to be considered as part of the district plan review and the discussions about a sewerage scheme.
One application for a subdivision had already been declined because of the density of septic tanks, she said.
