Otago Regional Council has cleared the way to consider financial support for a Central Otago irrigation scheme.
The council has voted in favour of amending its long term plan to allow for investment in the proposed Tarras scheme, overturning a recommendation from its hearing panel.
Tarras Water Ltd is seeking council investment of about $3.5 million by taking up some of the initial shareholding.
The plan is to take water from the Clutha River to supply 40 properties covering about 6000 hectares in the district which lies between Cromwell and Wanaka.
Company chairman Peter Jolly says the council decision allows it to carry on with its plans.