Councillors, council staff and contractors observed the "Otta" sealing programme trial on the road near Arrow Junction on Thursday.
A light seal and two different chip seal surfaces were applied.
The light seal has already been used in Central Otago with positive results, the council said.
Oiling the district's unsealed roads was affordable but the council wanted to try "cost effective, more environmentally friendly" alternatives.
The initiative was backed at the council's utilities committee meeting this month.
The programme would cost $210,000 a year out of existing budgets, but was expected to prove cost-effective.
Council roading manager Ian Marshall said the council was testing three different applications on three separate sections of Morven Ferry Rd.
It was hoped less oiling would be used and there would be an extended period of dust suppression, with the new application lasting for at least three years.
