A group of Palmerston and Dunback people have applied to the Ministry of Tourism to receive funding for a feasibility study on a cycle trail between Palmerston and Middlemarch.
No funding amount for the feasibility study had yet been lodged, cycle trail group spokeswoman Jane Matchett, of Palmerston, said yesterday.
The group planned to raise 50% of the cost locally.
The route would probably follow part of the former railway corridor between Palmerston and Dunback, with some variations to a trail beside the Shag River, where a small number of landowners did not support the cycling trail going though the former railway formation on their properties.
The Palmerston-Middlemarch route would allow a hilly cycling experience to be added to the Middlemarch to Clyde Otago Central rail trail, Mrs Matchett said.
A cycling trail from Hyde to Palmerston could be considered as an alternative route, she said.
The "add on" to the Otago Central Rail trail could favour the Palmerston route.
Palmerston and East Otago needed to look ahead for business and tourism development when the OceanaGold mines at Macraes eventually closed in the 2020s, Waitaki District Councillor for the Waihemo ward Kathy Dennison said yesterday.
A cycling trail linking with the Otago Central rail trail and the Seasider trains at Palmerston could be a good option, she said.
A decision on funding for the Palmerston cycling trail feasibility study is expected from the Ministry of Tourism in February, Mrs Matchett said.
