Natural burials could line parts of land designated for the Alexandra Cemetery expansion.
This week, the Vincent Community Board proposed reclassifying a 7.2ha area next to the cemetery to provide room for future growth.
Central Otago District Council parks officer Nicola Rae said there would be "ample room'' for natural burials on the site.
"People choose this option for many reasons. It might be because they are cheaper or because they are more environmentally friendly.''
It was possible a section of the area could designated for such burials, she said.
People were often uncertain about what natural burials were and more education was needed on the topic, she said.
Natural burials allow bodies to decompose faster and often involved biodegradable coffins and planting trees on top of plots.
The reclassified land will not be used as a cemetery for decades.
In 2021-22, a shelter belt will be built that will intersect a neighbouring community garden run by the Salvation Army.
The board decided to extend the garden's lease for five years from June 30, 2017, and offer another lease, of a 1200m plot of land next to Dunstan Rd, from 2018. This would give the Salvation Army three years to establish a garden on the site before having to move.
Garden manager Brian Seymour said he would prefer to move sooner rather than later.
The new site was "quite a bit bigger'' but there were a few things that would need doing, including putting up a deer fence along Dunstan Rd.
The board also decided to formalise the horse grazing that occurred on most of the reclassified area.
Users will pay $1 per year, provided they paid for rates and upkeep.
The council will seek public feedback from early June.
