The Papatowai camping ground, 24km southwest of Owaka, has become a victim of its own success, with soaring visitor numbers testing its infrastructure, particularly its ability to safely dispose of sewage.
Doc is advertising for proposals to develop and manage the camping ground once the lease expires on November 1.
Otago conservancy acting-community relations manager Ken Stewart said Doc wanted the site's character retained to ensure any development was within the concept of "a basic Kiwi camping experience".
Potential operators would be asked to prepare proposals to overhaul the camping ground's waste systems and carry out other development.
The next stage of the process would involve applying for a lease for the camping ground, which is a Doc-managed recreation reserve.
Mr Stewart said Doc acknowledged the facilities, which were built in the 1980s, were not designed for the level of use the camp had received at peak periods in recent years.
"This has resulted in waste systems and resource consent issues. Because of this, proposals that are submitted need to address waste treatment and compliance."
The camp will remain closed until the new lease is issued, meaning it will be closed this summer.
"When it reopens depends on an acceptable proposal, whether the Minister of Conservation agrees to grant a lease on terms acceptable to the successful proposer, and how long it would take the lessee to bring the camp's facilities up to the necessary standards."
The site of almost 2.5ha already has a three-bedroom house, garages and gardens, an ablution block, kitchen, power points, tent sites and barbecue facilities.
Proposals for upgrading and managing the camp close on October 8.
