Masterton remains the only catchment in the Wellington region that exceeds air pollution limits over winter, prompting Greater Wellington to extend their home insulation scheme.
The council wants Masterton to get rid of their smoky open fires in favour of approved heating appliances.
Under their "Warm Greater Wellington Insulation Scheme," homeowners can put the cost on to their rates bill.
Chairwoman Fran Wilde said the council was concerned about the detrimental effects of smoke.
"Air quality testing has shown that central Masterton is the only catchment in the region that is under the National Environmental Standard for Air Quality, with air pollution regularly exceeding the limits during winter months," said Ms Wilde.