The capacity of the Wanaka town water supply is inadequate to cope with the expected growth of the town and needs to be upgraded.
Queenstown Lakes District Council engineering services general manager Mark Kunath briefed members of the Wanaka Community Board this week about the upgrades required.
The town's western Wanaka pumping station, which is located beside the Waterfall Creek walking track by Rippon Vineyard, was first in line for upgrading.
The pumping station feeds water to an existing reservoir in the treeline above the residential street Bills Way.
The reservoir would also have to be upgraded, "possibly doubling in size", to service growth needs, Mr Kunath said.
