Waipahi farmers - pushing for their own rural water scheme - would like at least 600 units, making a proposed scheme viable, according to a report prepared for the Clutha District Council.
The dairy boom in the area encouraged several farmers to approach the council a year ago about setting up a fresh water supply.
Initially, 15 farmers were keen, but a feasibility study has revealed 33 properties would tap into the new supply.
A report on the idea identified different ways of supplying the 600 units needed and two options to expand beyond that to cater for future growth.
The cost of the options range from $1.05 million to $1.51 million, although these estimates have a margin of error of about 30%.
The scheme would involve a bore or infiltration gallery alongside the Waipahi River, next to the West Otago Rd bridge, pumping from there into about 30km of reticulation.
The viability of the scheme, according to the report, depends on getting enough water filtration so the quality of the water is consistent enough for stock.
"The study assumes there is no intention to use it for human drinking water, thus the requirements of the Health Act in respect to drinking water will not apply," the report stated.
Assuming the new scheme was operated by the council, rates for each unit would be between $287 and $311 for the 600-unit operation and between $343 and $366 for the options which took into account future growth.
"These rates suggest the scheme is viable."
The council had made $7000 available to investigate the scheme, but these funds were likely to be exhausted looking at various bore sources on the river.
Any further costs would have to be covered by prospective consumers.
Future progress would require prospective consumers to be proactive, the report stated.
If they agreed to press on, they needed to decide whether the council should own the scheme, commit to specific quantities of water, and debate how it should be paid for, which model was best and what timeframe was suitable.
