A study is set to examine Stranraer's potential as a major marine leisure destination.
The proposal involves the development of a watersports activity centre overlooking Loch Ryan.
It follows the success of a coastal rowing championships this year which brought thousands of competitors and spectators to the town.
The international contest was organised and hosted by Stranraer Watersports Association working alongside a range of other local groups and organisations.
It has now applied for council funding to look at options for developing a training, education and regatta centre on the shorefront.
A grant of £65,000 has been earmarked from the local authority's town centre capital fund.
If confirmed, the money would be used to undertake a feasibility study to help identify a suitable site, draw up designs for the building and provide an indication of the likely costs involved.
"The championships demonstrated that Loch Ryan is an ideal location for watersports delivery," said a report to councillors.
"The unique compact layout already supports multiple activities such as sailing and rowing with great success and already benefits from the secure storage, slipway, boathouse provided on the waterfront.
"This project has the potential to significantly contribute to the development of Stranraer as a marine leisure destination."