WEST Wimmera Shire Council will investigate the possibility of using water from Iluka Resources' mineral sands mine at Douglas.
The council wants an alternative or additional water source for Edenhope, Harrow and Apsley.
Councillors and chief executive Mark Crouch have opened discussions with Iluka representatives on the issue.
Iluka is scaling back operations at the mine and no longer needs its bulk entitlement of 5000 megalitres a year, which comes from Rocklands Reservoir.
Mr Crouch said Edenhope, Apsley and Harrow were on bore water. "There are issues around the quantity of bore water available and also the quality," he said.
"Discussions with Iluka are a move to find an alternative water source.
"Whether it is practical or even feasible, I'm not sure yet.
"Initial discussions with Iluka have opened to further discussions about the project."
Mr Crouch said Iluka was open to canvassing the idea.
He said council would meet GWMWater representatives next week to discuss the option further.
"Until we sit down with them, I'm not sure of the plans at this stage," he said.
"We need to work out with them if it is even possible and if it would be a priority for them."
Mr Crouch said he had no idea of how much the project would cost.
He was not aware of any other potential users aiming to tap into the Douglas mine pipeline.
GWMWater stakeholder services and governance general manager Andrew Rose said managing director Mark Williams would discuss the project with council.
"It is still early days and we are keen to hear what they have to say and help explore any options," he said.
"So far only informal discussions have been had, but following more formal talks, we will look at what options are available.
"We also need to talk to Iluka and see what their desires are and what long-term plans they have before making any decisions."