Commissioners who considered the first large-scale power project for the West Coast of the South Island have reportedly decided in favour of the scheme.
West Coast MP Damien O'Connor is quoted in a local newspaper as saying the commissioners have approved an extension of a small dam on the Arnold River near Greymouth. The decision has not yet been issued.
Greymouth Mayor Tony Kokshoorn says he is confident it will go ahead, although he has yet to see documentation.
The $185 million Trustpower project would produce 46 megawatts of electricity - enough to supply the entire West Coast.
Trustpower says it has not yet received confirmation.