The observation tower is proposed to be built on the corner of Southhampton St East and Hastings St South, along with a reservoir funded separately to Water Central through budget allocated for the drinking water strategy.
The reservoir would cost $13.85m.
Under the plan, another reservoir, on Frimley Park, almost on the Hastings Girls' High School boundary, would also be built, costing $13.8m.
Hastings District Council has been tight-lipped on the proposal, asking for Hawke's Bay Today to allow their consultation process to "duly run its course", so people can be "informed in a constructive way".
Acting chief executive Bruce Allan said: "We are quite keen to make sure that those that are most affected are told in a way that's actually more personal to them because they're closest to where the reservoirs will be."
"It's just courteous to be able to give them the opportunity to hear it first."
The proposal is scheduled to go for public consultation by February/March of next year but could be as early as this year.
He said it would be "nice to have" and will acknowledge "a lot about what's happening in the water space".
However, he said no budget provisions have been made for Water Central.
"The costs and other details presented in the public excluded paper on Water Central are based on the concept-level details only. They indicate some possible options of what could be achieved."
Hastings mayor, Sandra Hazlehurst said: "Staff have provided us with some information on the water storage facilities and potential ideas for developing them, however, we must work our way through the process before we can be clear about the costs".
"As with all parts of the water strategy (and all other projects), once there is clarity we will share that information with our residents.
"This is about investing in delivery safe drinking across our whole district including our seven small communities," Hazlehurst said.
It is understood an option for a larger building, that could hold 50 instead of the aforementioned five staff, for about $17m was put forward but subsequently rejected.