The group planning the market has asked the Waitaki District Council for permission to use the area next to the former railways goods shed, which fronts Wansbeck St.
The weekly market, to be held on Sundays, would start in September and use the area until April next year.
The group is seeking approval from the council's committee of the whole, which meets on Tuesday.
Council corporate services manager Carolyn Carter said in a report recommending the land be available for the market, the preferred site was the car parking area on the corner of Tyne and Wansbeck Sts next to the goods shed.
Other users of the space would be respected and the market recognised it might have to move within the area if any tenant for the goods shed required the space or if the Harbourside strategic plan, now being drafted, identified an alternative use for the site.
The area and an appropriate rental for the site would be determined in negotiation with the council's property division.
"The market will be a fledgling enterprise initially and may not be able to readily pay a competitive rental for the site. However, longer term, this could change," she said.
No rent was at present being received for the site.
The Waitaki Development Board, which is helping establish the market, said it was planned to open it on September 4 to coincide with the Rugby World Cup festival.
Subsequent markets would be held on Sundays for the duration of daylight saving.
The board would assist with funding to set up the market.
The council bought the former goods shed and yard when it was no longer needed by NZ Rail.
It viewed the site as important to development of the Oamaru harbour and Historic Oamaru areas as a link between the two.
