The proposal, which suggests pumping sewage from the Pounawea Camping Ground to Owaka, was discussed at a meeting of the Clutha District Council's district assets committee on Thursday.
In a report to the committee, district assets manager Jules Witt said the problems with "grey-water discharge" from the council-owned camping ground at Pounawea emerged four years ago. Grey water is wastewater generated from domestic activities such as laundry, dishwashing and bathing.
Mr Witt said an initial assessment indicated the Owaka sewerage system - twin oxidation ponds and the Biofiltro system - had "significant additional capacity" available.
Initial contact had been made with several property owners along the route and there was general support for the project and a "willingness to work towards the best outcome for the community", he said.
The proposal was supported by the district assets committee which voted to recommend the council increase the camping ground's budget to $310,000 for the construction of a new pump station and pipeline to Owaka.
Clutha Mayor Bryan Cadogan said pumping sewage to Owaka was the only viable option to prepare Pounawea for the future.
Mr Witt said it was important to remember this was not a compulsory sewerage scheme like Tokoiti and Benhar, but a voluntary scheme. With a history of high groundwater levels in Pounawea, the scheme might be attractive for some property owners who had repeated issues with their systems, he said.
Voluntary connection to the scheme is estimated to cost almost $15,000 per property.
Cr Hamish Anderson said it was a "wonderful opportunity" for the community to address sewage issues in a "timely manner".
Under the proposal, the system would initially be available to properties alongside the direct pipeline route. Extensions would only go ahead if there was sufficient interest to warrant a pipe extension.
Both the Pounawea and the Owaka communities will be consulted to gauge support for the proposal, and it will be considered by the Clutha District Council at its meeting on November 1.
The council will also consider whether the Pounawea public toilets near the foreshore should be connected to the new system.
