When pioneering sheep farmers arrived in Tarras in 1858, the landscape was a vast expanse of wind-blown golden tussock, which was blanketed by snow in winter.
Gold was discovered in the Lindis River in 1861, and a strike at Bendigo a year later drew hundreds of miners to the district.
Towns, shops, water races and stamping batteries followed. But by 1888, it was mostly over, although some mining operations continued into the 1940s - Tarras was left to the farmers, their merinos and the rabbits.
Today, it is home to fewer than 300 residents, a golf club, church, school and preschool.
Recently, landowners have carved up larger properties into vineyards and lifestyle blocks supporting diverse horticultural activities, and the first winter-grazing dairy herds have arrived.
But there's a sense Tarras has been left behind other Central Otago towns.
When the Otago Daily Times visited farmer Pete Jolly in mid-winter, he was enthusiastic about the changes a proposed, reliable water scheme could bring by 2013. He was one of the driving forces behind a committee formed in 2006 to investigate irrigation options and helped steer the Tarras Community Trust and Tarras Water Ltd through the public consultation and regulatory processes.
He is keenly anticipating the release of the company's second prospectus by the end of this year.
"Yes, it will change Tarras forever, but the benefits will be huge because this is a district going nowhere ... It will look like spring all year round." Mr Jolly said.
Tarras gets its drinking water from bores or springs, while non-potable irrigation water is provided by the Lindis Irrigation Scheme's open races.
John Morrison, a peony grower and secretary of both the Lindis scheme and Tarras Water, says there are three main problems with the present scheme.
First, the Lindis scheme relies on water supplied under historic mining privileges, which expire in 2021.
Second, the Lindis River is over-allocated and runs low during droughts. Third, there's a "very real threat" that unless the community takes the initiative, the Government could impose an unworkable minimum flow regime.
In January 2010, Tarras Water Ltd got Otago Regional Council consent for a $36 million scheme, capable of irrigating up to 9000ha from the Clutha River. The scheme will provide shareholders with water for irrigation, firefighting, domestic and stock supplies, frost-fighting and light industrial purposes.
As part of the process, a report was commissioned from Aqualinc Research Ltd, which concluded the scheme would contribute $18 million to regional gross domestic product and create 257 jobs.
Sheep farming accounts for about 86% of the 9000ha to be irrigated by the Tarras scheme. A 2009 study by Karl Barclay, of Agfirst Consultants, projected, once water came on, sheep farming could drop to 43%, while dairying would increase to 5%, dairy grazing to 15% and arable to 20% (each of those last three activities from a starting point of zero).
The estimated cost of the scheme is high - about $7000-$8000 per hectare, including on-farm irrigation development costs, so landowners are looking for ways to get a return on their investment.
In other districts, when water goes on, dairy cows have followed because, although conversion costs are high, dairying is viewed as the most profitable land use.
However, Landward Management land economist Ray Macleod and dairy management specialist Martin Treadway said that, based on New Zealand benchmarks, farmers would not get much spare change from $6.5 million if they did a full sheep-to-dairy conversion for a herd of 650.
That figure was a "break-even situation" and included land costs but excluded about $1 million in Fonterra shares.
No dairy farm conversions have been announced in the Tarras district, but, with a conversion under way at nearby Hawea Flat, it does not take a huge leap of imagination to consider someone might soon want to build milking sheds, develop transport links to east coast dairy factories or even build an Upper Clutha dairy factory.
However, recent price improvements in the red meat and wool sectors could convince Tarras farmers to stick with traditional sheep and beef farming.
Within these sectors, there are new choices to be made at Tarras. Could farmers snub the specialist wool sheep breed merino and switch allegiances to the dual meat and wool crossbreed Romney?
Malvern Downs Station farmer Robbie Gibson is considering just that. He's also recently taken on winter dairy grazing but on dairying itself, he has suspended his judgement until he sees the share prices in Tarras Water's prospectus.
Mr Jolly, a sheep farmer, believes tradition may continue to influence farming "so long as it is economic", but he understands following generations may want to try something new.
He understands people are scared by reports of "dirty dairying" but points out that "everyone who signs up to Tarras Water Ltd will have to sign an environmental plan that will be audited annually".
The Aqualinc report laid out opportunities not just for dairying but for sheep and beef, seeds and grains, orchard fruits such as apricots, nectarines and cherries, and vineyards.
Tarras already has diverse, small-scale horticultural activities such as peonies, olives and saffron. With more water, similar lifestyle ventures could increase.
Finally, if landowners are concerned about water scheme costs, they could sell parts of their farms to pay for it.
Clearly, there's been much for Tarras landowners to weigh up over the past five years and many decisions are still to be made. But the response to Tarras Water Ltd's release of shares looks promising.
Already 70% of property owners have signed up for rights to buy, although not all may carry through their intentions or take their full entitlement.
Tarras Water could build a scheme to 70% but obviously wants to build to its full permitted capacity, so it has been negotiating to sell the balance of share rights to a "dry" shareholder.
"If Tarras Water doesn't go ahead, this district will be under pressure. Existing land users will struggle. And that's before the D word [dairying] is mentioned," Mr Jolly said.
What next for Tarras Water?
• By October 31: the trust receives design and price bids from three contractors selected following a call for tenders in June. The preferred • contractor will then be chosen.
• November-December: funding package with guaranteed maximum prices will be included in the second prospectus and released to shareholders.
• By March 31: If enough share subscriptions are received, the trust will "hit the go button" and begin building the scheme for completion in 2013.
Scheme numbers
• 7630 - number of hectares and shares in the scheme
• 5319 - share rights taken up (70%)
• $34 - price for right to one share per ha
• $180,846 - total raised in share rights so far
• $4000 - estimated cost for one share/ha
• $3000 - estimated additional cost for on-farm irrigation infrastructure per ha
He has also taken options to buy 700ha worth of shares in Tarras Water Ltd and begun investigating pivot irrigation systems but has suspended farming decisions until more details of the scheme are released next month.
With the high sunlight hours, Mr Gibson predicts dry Tarras would be able to grow grass as well as anywhere in New Zealand.
Tarras' climate has been regarded as too dry for growing cereals so the area has traditionally been associated with sheep and beef. But the soils could produce high volumes of cereal crops such as barley, wheat, oats and triticale, Mr Macdonald says.
Before moving to Wanaka in 2007, Mr Macdonald ran an intensive cereal cropping operation in Southland for more than 35 years.
Mr Macdonald said water would come at a cost and a crop-focused operation would have challenges but he believed the scheme presented great opportunities for farmers to do things differently.
They arrived with a dream of growing peonies and began planting in 1999. They now have about 8000 plants and export about 90% of the flowers.
Mr Morrison has plans for growing other crops, but is waiting for a reliable water scheme before finalising plans.
Seven seasons after planting their 350-tree olive grove, the Ardgour Valley growers are starting to reap rewards from their 8ha block.
Oil production has doubled as the trees mature and this year they harvested about 2 tonnes of fruit and produced 220 litres of oil.
The couple also run a bed and breakfast, Ms Schrieber is a travel agent, and they grow and sell raspberries and vegetables.
They feel it is inevitable they will take some shares in the Tarras scheme to obtain a secure water supply once the Lindis scheme expires in 2021.
He has taken up share options and estimates the share purchase could cost him between $40,000 and $60,000, before he puts in the infrastructure on his 17ha property.
To make it worthwhile, he'd have to consider intensifying his land use.
There are 2000 vines (1800 pinot noir, 200 reisling) on his 6000sqm boutique vineyard. The Lindis irrigation scheme water is available, cost effective and he can store it.
