The Central Otago District Council is to apply to the Lottery World War 1 Commemorations, Environment and Heritage Committee for a grant to pay for a feasibility study on the Eden Hore Fashion Collection.
The grant will cover options for housing, curating and displaying the collection.
During a meeting of the Community Services Committee this week, council economic development manager Warwick Hawker said he hoped a decision on funding for the study would be made by May next year.
If approved, funds would be available soon after, and a brief for the study would then have to be created.
The council had also received indications there were various government and non-government sources of funding which could be used to construct a facility to house the collection, he said.
Cr Malcolm Topliss suggested funding for the collection could be self-generated, once it is displayed.
Mr Hawker said the collection was a ''big issue'' which council needed to ''delve into properly''.
It had to ensure the collection did not become a ''millstone'' around the community's neck, he said.
It was reported last week that the council sought up to $54,000 for the feasibility study into the 276-item collection, which it bought for $40,000.
The collection is regarded as the largest private collection of 1970s to early 1980s fashion in the southern hemisphere and is insured for $92,750.
The garments were collected by Naseby farmer Eden Hore and displayed at his property, Glenshee.
When he died, Mr Hore left the collection to his nephew, John Steele, and Mr Steele's wife, Margaret.
They lived at Glenshee until last year, when ill health prompted them to sell the farm.
