The authority's capital replacement review is looking at the state of equipment, whether it meets the best criteria for fighting fires and where it should be located.
That includes where a tanker should be housed in the Waihemo area, after the Palmerston one was taken off the road, leading to a protest from the community, demanding replacement.
On Wednesday, the council's finance, audit and risk committee endorsed a decision by chief executive Michael Ross to provide $100,000 from the rural fire depreciation reserve fund to replace fire tankers for the Kakanui and Waitaki (based at Whitestone Contracting's Deborah yard) rural fire parties.
The Kakanui tanker will be considered for an overhaul and be located in the Waihemo area, at a place yet to be decided.
Chief financial officer Paul Hope said the authority's review would have ''a big impact'' on the Waitaki district's rural fire parties.
Waitaki's equipment was handed over to the Otago authority last year, but a lot was approaching the end of its life.
That was because the council had not replaced equipment during the process of setting up the new Otago rural authority, which included making decisions on ownership of equipment and vehicles.
As a result, it was expected most of the remaining $481,000 in the depreciation reserve fund would be used, Mr Hope said.
In return, Waitaki rural fire parties could get newer and more specialised plant.
Waitaki Mayor Gary Kircher said the review was looking at the whole of Otago, and where equipment would best be located to meet needs and demands.
"We want to make sure our district is looked after appropriately,'' he said.
