In a statement the Dunedin City Council said it was proposing but had yet to confirm if it would close the camp after Easter 2025.
However, it was planning to "undertake a significant upgrade of essential electricity and water supply infrastructure".
The timing of the temporary closure would be to avoid high-use times, the council said.
Motor camp lesee Stuart Ellwood said the council wanted to put the electricity supply to the camp underground.
It would also install a new water reticulation service, Mr Ellwood said.
"I’ve been here 17-odd years and it’s been something on the go since I first came here with the intention of getting it done."
While the camp did not have permanent residents, it did have "semi-regulars" and others who stored their vehicles on site who might be inconvenienced by any closure.
"There’s people who stay here for reasonable periods of time."