Their home would either be fully submerged or on the lake's edge but despite this, the couple welcome the proposal.
"I'm perfectly happy to move, as long as it's the right price ... If they offered us a measly price, I'd just lie in front of the bulldozers," Mr Vallance said.
He said the way the area is shaped and its close proximity to Masterton makes the site appealing.
"We're actually sitting in a big, natural dam - that's why they like it. I have a gut feeling this is the one they are going to go for. This is on the town's doorstep and water is becoming such a huge issue. There's not enough water.
"They say the dam is necessary after all the drought issues and would be progressive for Wairarapa.
"For us, it's just a lifestyle block and I think progress for the area like this is fantastic. I think a lake here that people can water ski and swim, I just think it's great for the area ... having this great supply of water must be good for everybody."
"If it's fair to us as a property owner and it's going to create progress for our area, I'm all for it," Mrs Rodgers-Vallance said.
The pair said the only issue they had is that if they want to move in the meantime, it may affect their ability to sell.
"What we would like to know is whether it's going to go ahead or not. We'd like to know as soon as possible. It would be nice not to be left in limbo for a long period of time," she said.
Nearby farmer John Owen, who uses 10ha of land on the road as a grazing block, said he is also not concerned about losing the land.
"But there's some beautiful land up the valley. It seems a shame to flood it all. That must be a bit upsetting for them [property owners] because some of them would have been living there for quite a while," Mr Owen said.
He said if the dam is to go ahead, the land would be bought off his daughter and son, who are the trustees.
