Parts of the old railway and public road formation between Palmerston and Dunback and from Dunback to Macraes and down Moonlight Rd to Middlemarch already offered a variety of cycling options, but at present, they were ''quite unknown'', Palmerston Business Group chairwoman Annette Rosanowski said.
The scenery along the old rail routes and public roads inland from Palmerston was ''absolutely beautiful'' and promoting it as a cycling trail made perfect sense, she said.
Mrs Rosanowski said a number of people were stopping in the ''junction town'' of Palmerston, coming from or heading to the Otago Central Rail Trail.
A cycle trail network around the Palmerston area would open up more opportunities for cyclists and, at the same time, boost tourism in the town.
''We're not trying to copy the [Otago Central Rail Trail] by any means, but they have set a cracking good example of what can be done with a bit of perseverance and teamwork,'' she said.
''We're trying to plan ahead. We're trying to look to the future.
''Hopefully, it may be one of those things that draws people here.''
Following old railway lines and roads, public access was, in most cases, not a problem, she said.
A meeting on June 16 would be an opportunity for the group to decide how to push the initiative.
''At the moment we're considering which is the best approach to take and which option is the best to go further with,'' Mrs Rosanowski said.
''There's real potential for something and it's not limited to one trail. There's an awful lot of possibilities around here.''
Waitaki Mayor Gary Kircher said he was very supportive of a Palmerston, Dunback, Macraes, Middlemarch cycle trail, following a recent report that the OceanaGold mine was interested in firm proposals from the Waitaki District Council.
While the first priority for the council was the completion of the Alps 2 Ocean cycle trail, taking sections of the cycle trail off the highways, Mr Kircher said discussions about options from Palmerston to Middlemarch would continue.