Milburn, which already boasts a handful of key industries, is poised to become Clutha's industrial hub with a proposed change to the district plan calling for a new industrial zone to be created there.
The Clutha District Council's review of its district plan suggests the zone be created in the area north of Milton which already boasts the Otago Corrections Facility, Milburn limeworks, new Calder Stewart headquarters and City Forests' processing plant.
The proximity of the area to rail and ports, plus its remoteness from major towns and built-up areas, makes it a prime site.
The council recently spoke to interested parties about key issues in the plan review and meets on Wednesday to adopt a document which will then be released for further response.
A crucial feature of that document will be the plan for an industrial zone to handle future industrial development in that area.
The idea had attracted submissions and interest from various groups, some who opposed the idea outright and others who welcomed the move.
In its decision, the council said it liked the idea of refining the existing rules, which had allowed some development already, while looking at introducing a new industrial zone in the area.
The zone would include all of the Milburn area, just north of Milton, through to the phosphate deposits at Clarendon, just south of Waihola.
The council believes it needs to develop a structure plan to ensure infrastructure is "appropriately provided for".
While it acknowledged some submissions opposed the idea, it said it was swayed by the fact the area was "clearly an attractive location for medium to large-scale industrial and commercial development".
Because of this, the council said it was inevitable development and its associated pressures would continue in that area.
"Under these circumstances, council's experience indicates that the effects on natural and physical resources are generally best managed through the creation of a zone and rules that specifically address those effects."
It considered the potential effect on the district's quality of agricultural land but said that was not a significant issue given the largely rural nature of the district.
"This area is considered reasonably well suited to industrial and commercial use, given that it is flat, is situated on major transportation routes and is relatively close to key population, infrastructure and services while being reasonably remote from more sensitive uses."
While it was pushing for the new zone, the council said it did not want to "force" developers to locate to the area.
"There will still be the ability for developers and property owners to undertake activities elsewhere."