The trial will be used as a test case to evaluate the viability of a wider community transport programme for Otago as well as informing future development of connections between Oamaru and Dunedin.
Otago regional councillor Kevin Malcolm said the Oamaru community had "waited and waited" for bus services.
This was a short duration trial and it was now up to the community to "jump in behind it" to make it work, Cr Malcolm said.
"Council’s now backing it and rightly so.
"The community needs to jump in and make sure it works and works enduringly."
The Otago Regional Council approved the provision of $25,000 funded through a targeted rate from the area.
The council’s decision yesterday builds further on a proposal initiated by Oamaru resident Trevor Goodin, who convened a public meeting in the North Otago town last month to discuss local public transport options.
That meeting led to the establishment of the Oamaru affordable bus steering committee to support a transition from the existing Oamaru-Dunedin health shuttle to a non-profit community transport service.
Mr Goodin and the steering committee have envisioned putting on an Oamaru-Palmerston shuttle to connect with the regional council-funded buses to Dunedin.
However, council staff recommended the trial go further and "adopt a flexible model that allows the service to respond to community feedback and adopt different trip patterns, such as full Oamaru-Dunedin trips, Oamaru-Timaru trips, and local travel within Oamaru".
Cr Elliot Weir said it was admirable that the community had taken the initiative.
Cr Lloyd McCall said he hoped it would lead to "all Otago" being connected.
Oamaru had "stepped up extremely well", Cr Alexa Forbes said.
Chairwoman Cr Gretchen Robertson said the decision represented "local government at its best".
"It’s really pleasing to see council taking that attitude of supporting community-led initiatives, where we get far better bang for buck and far better outcomes because the services the community wants are driving themselves, literally in this case, which is absolutely amazing."
The trial is hoped to be operative by the end of the year, or early in the new year.
Following the meeting, Cr Andrew Noone, co-chairman of the council’s public and active transport committee, said a community transport trial connecting Oamaru and other areas was raised by submitters during recent Otago Regional Public Transport Plan consultation and that feedback was included in the plan.
"ORC aspires to create better public transport connections across Otago, connecting areas such as Balclutha with Dunedin and Alexandra, Clyde and Cromwell with Queenstown. We’re looking forward to working with the Oamaru community to make the most of this trial."
