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For more than seven years the club has tried to install a sewerage system.
However, uncertainty over ownership of the land, which was once owned by the Otago Harbour Board, meant it could not apply to connect to wastewater.
The Dunedin City Council has been providing a portable toilet for the club during the summer seasons.
City council property services group manager Dave Bain- bridge said the council was now negotiating with the club about a lease, which meant it would be able to connect to wastewater.
The 1989 Local Government Amendment Act indicated the land could have been transferred to either the regional or city council, depending on various factors, he said.
At some point the Otago Regional Council applied, but this was declined.
Within the past three months the city council applied and was successful.
There was a "lack of oversight in 1989, and a lack of clarity since''.
Club commodore Warwick Graham said the lease agreement was what the club had "been wanting for seven years''.
"For the kids it's been pretty hard using a Portaloo and no shower.''
He had received complaints from parents about the lack of facilities.
Once the lease was finalised the club would work through the process of creating a wastewater system, which would cost about $35,000.
For this it would fundraise and apply for grants.
He expected the initial lease cost would be "very affordable''.
A drainlayer was now creating a site plan, after which the club would get quotes and work with the city council's drainage department.
"There's still a bit of a process to get through. It won't happen before the summer, but it would be nice to have it done some time during the season.''
Shortly before he received the call from the city council, trustees were "threatening to move the trust to another club'' because of the issue.
"That would have been the nail in the coffin.''