The Queenstown Lakes District Council is seeking proposals for a 2.6m space of "prime" Queenstown lakefront - in the new Earnslaw Park toilet block.
Community services manager Paul Wilson said the council was looking for a "big idea" to fill the small space, which had been set aside to be used as a business or service kiosk, he said.
The new public toilets would be constructed on the site of the existing toilets and open in time for the 2013 Queenstown Winter Festival.
The council's expressions of interest document said the toilets would be of a "modern and attractive design", with 10 "all gender cubicles" and two wheelchair accessible toilets provided.
They would be cleaned four times a day by the council and would be rated "zero tolerance to graffiti".
"Within the building, facing southwest on to Earnslaw Park, will be the kiosk space."
The kiosk area would be separate to the toilets and include a separately metered single phase power supply, a telephone line, a water tap and basin and space for fixed signage.
The council previously rejected a proposed cafe on the park, due to public opinion considering that unnecessary, but it elected to seek proposals for the small kiosk space, which would take up a small portion of the toilets' service alley.
Possible future businesses included a news stand, florist, art/craft retail - or a fruit stall, the latter Mr Wilson described as a "colourful example".
"No doubt there are other uses we haven't even thought of," he said. The Queenstown Trail ends there ... a bike hire business or a guiding bike business to operate from there [is an option].
"It's a great site with lots of potential.
"It's just something a bit different for Queenstown."
All proposals would be considered in terms of how they increased the amenities of Earnslaw Park, with criteria including "the compatibility of the proposal with public toilets", Mr Wilson said.
Once proposals had been received the council would consider if they were appropriate for the site given the reserve status of the land and the likely public benefit of the proposal.
"If the council receives a proposal that it considers worthwhile, then it will seek public submissions on the intention to grant a lease as set out in the Reserves Act 1977," the document said.
Mr Wilson said any issues concerning the potential activity located beside public toilets would be dealt with through the regulatory process.
If the council elected to accept a proposal following the submission process, a lease would be negotiated and the council would work to enable the business to operate on or before June 20.
"If having considered public submissions, the council elects not to proceed with the granting of a lease, then the request for proposal process will terminate."
The request for proposals will close on December 21.