The hatchery is one of two priorities identified by the Central South Island Fish and Game Council to improve the salmon catch and the concept is gaining support.
Fish and game officer Mark Webb said existing and potential sites had been investigated along the lower river.
The council's preference was to use brood stock from the Hakataramea River, the Sanfords hatchery to incubate and rear fry, the disused ICI Watties race to grow the fish on for 12 months and then release them at Bells Pond, Welcome Stream, the Hakataramea River and other sites.
The hatchery proposal is based on the highly successful McKinnons Stream hatchery on the Rangitata River, operated by the Salmon Enhancement Trust under the auspices of the fish and game council.
The hatchery produces fish for a cost of about 40c each, compared with $1.90 to $2.90 for fish from commercial hatcheries.
Last season, the first fish returned and 500 were caught, representing a cost of about $40 each.
A hatchery on the Waitaki River would be set up along the same lines, the council obtaining the necessary resource consents and the hatchery being run by volunteers, with funding from grants and donations to cover operating costs.
The meeting last night endorsed the proposal.
A five-member steering committee was appointed to investigate a hatchery, how it could be funded, where it should be sited and other issues.
