The cheapest solution also looks the best to upgrade Omarama's water supply to meet drinking water regulations.
The Waitaki District Council is nearing the end of upgrading 17 water supplies, estimated to cost more than $20 million, to deliver water to about 20,000 consumers that meets drinking water standards introduced by the Government in 2005.
A proposal to the Ahuriri Community Board on Monday recommends a $340,000 option to upgrade the Omarama's water supply, the lowest cost of five options, the most expensive being almost $500,000.
The proposal is to sink a bore at the existing source close to the Omarama Stream at the entrance to Omarama Station near SH8.
The existing source, a gallery intake, cannot supply the expected growth in demand and has variable water quality.
Water and wastewater engineer Oscar Smit said a new source of water was investigated and two identified - a bore next to the existing intake or on the road reserve in Broken Hut Rd, just south of the town.
An assessment had been made on whether to proceed with installing production bores at the existing location or carry out exploratory drilling in Broken Hut Rd.
''The assessment ... shows that the existing source location is preferable to carrying out exploratory drilling, given the potential risks and costs for both sites,'' he said.
The quality and quantity of water established from a test bore at the existing site showed the source would meet needs, the only drawback being potential contamination or damage from floods or the state highway.
However, if the bore was not totally free of contamination, an ultraviolet treatment system could be installed later to meet drinking water standards.
Work has started on connecting Kakanui to the Oamaru water supply. The $870,000 cost included laying a 9km-long water pipe, along with an 8km waste pipe to handle sewage, connected to the Oamaru treatment plant.