The Wellington City Council has decided to finance an engineering study of the costs and benefits of establishing and running its own culinary water treatment system.
The city will add $5,000 to a $15,000 grant it has received to pay for the research and an environmental assessment.
Johansen and Tuttle is the engineering firm that will perform the study.
Mayor Ben Blackburn said the city has enough water shares to serve the city.
The most likely site is beside an existing water tank in the city.
Blackburn said the plant would not have to be large, but it would be a small, state-of-the-art facility adequate for the city's needs.
Wellington now gets its treated water from the Price River Water Improvement District.