Carterton District Council is hoping to sweeten profits from the Kaipaitangata Forest.
Plans are under way to convert 20ha to produce manuka honey as part of a joint venture with natural healthcare company Comvita.
The council approved spending $40,000 to establish a small manuka plantation at Kaipaitangata Forest as part of its 2014/2015 annual plan.
The council bought 260 hectares of land to provide a water catchment area for the district.
The forest was harvested more than 10 years ago but a portion was left unharvested because of the difficult terrain and falling log prices prevailing at the time. Now part of the previously unharvested forest will be felled to provide space for the manuka seedlings.