From Te Ariki people would walk to Tapahoro campsite for night two of the walk and then to Tarawera Falls, over the hill to Lake Okataina, or out to Kawerau.
Rotorua Lakes Council Lakes Community Board chairman Phill Thomasssaid a feasibility study with iwi as the principal participant would be an ideal start.
"I think the locals who live at Tarawera also need to be involved with this study as there could be increased loads on public facilities as well.
"I count myself extremely blessed to have gone to the top of Mt Tarawera a couple of times as it is an amazing place and a fantastic experience and for others to have that experience would be great.
"I hope it would also spur the Department of Conservation into more pest control around those lakes as we do have a problem with pests out there.
"But, I imagine it would definitely become an iconic walk in New Zealand if it went ahead," Mr Thomass said.
Te Tatou o Te Arawa chairman Te Taru White said it was a great idea.
"You can't hide all of this natural beauty and history and we can work on the infrastructure to make sure this can happen.
"You can imagine the spirit, the wairua, of the story and history of the area.
"It's wonderful our local iwi are working on great ideas such as this."
Rotorua mayor Steve Chadwick said Tarawera was a special place of environmental, cultural and historic significance "and we support iwi's vision for the area".
"Council has been aware of, but not involved, in plans to restore this unique natural area and consider its tourism potential.
"Tarawera is a real jewel in Rotorua's crown and the birthplace of New Zealand tourism and a new 'great walk' at Tarawera would be a good eco-tourism fit for our district.
"I look forward to the results of the feasibility study," she said.
Lake Tarawera 'Great Walk'
- Funding for a feasibility study for a Tarawera "Great Walk" has been approved
- It will find out if a three-day "alpine" walk around the lake will be possible
- It will look at the possibility of new camp sites and accommodation options
- Controlled, guided access of the summit would be part of the study
- The trail would go from The Landing to Hot Water Beach/Te Ariki and on to Tapahoro camp site to Tarawera Falls/Humphries Bay or over to Lake Okataina