A combined, treated water supply appears to be possible for Palmerston, Dunback and Goodwood.
The Waitaki District Council has recommended all three supplies should become a single water supply with three zones, Waihemo Community Board chairman Rod Philip said.
Water would be sourced and treated at Palmerston, and from there distributed to the three areas.
If the proposed scheme gets the go-ahead, there should be room for new water consumers.
The Dunback and Goodwood water schemes have been closed to new customers for some years.
