It would also look at having specialist brigades for different emergencies, such as vegetation fires and structure fires.
Mr Dunne has invited public submissions.
Following the Masterton meeting, in the Frank Cody lounge, the minister said he was hearing "loud and clear" the need for change.
In Wairarapa, he said it was hard to draw a distinct line between urban and rural duties.
He said it was apparent there was a very strong commitment to volunteers in Wairarapa, and a wish they were not "burdened" to the point they were discouraged from joining.
Wairarapa principal rural fire officer Phill Wishnowsky said a good example was more than 50 per cent of Castlepoint Fire Force's call-outs were for matters other than fires.
"That's the changing world - but no one has been legally mandated to do that.
"It's about time it got defined."
He said many rural volunteers were self-employed and earnings suffered if they were called out for a hefty fire.
Wairarapa deputy principal rural fire officer Grant Detheridge-Davies said the existing hierarchy for Wairarapa rural volunteers is reporting to a board of stakeholders, made up of representatives from the three councils, the Department of Conservation and forestry owners.
Urban volunteers, such as crews from Featherston and Carterton, come under the New Zealand Fire Service.
He thinks the final make-up of the fire service could be a mixture of the options, "not just one, or two or three".
He said another unknown would be the area covered.
"Whether we are just Wairarapa, or Wairarapa-Manawatu, that hasn't been looked at yet."
-The Wairarapa Rural Fire District covers approximately 600,000 hectares, from Pukaha Mount Bruce to Cook Strait.
There are eight volunteer rural fire forces, five volunteer fire brigades and a fire service at Masterton.