Tatiara District Council will look to transform Bordertown's "old Shell depot" after being provided a draft licence agreement for the land.
Originally the council was proposing to only have the area north of the water tower licensed but the proposal now includes the water tower, stopping short of the railway station building and storage shed.
Council has been trying to secure the land for a number of years, with discussions with the Department of Planning, Transport and Infrastructure (DPTI) taking longer than expected. This was due to a request for an extension to the licensed area.
Council's director development and environmental services Rocky Callisto said the request has now been agreed but the draft agreement does come with special conditions.
"The special conditions highlight the rail infrastructure on the land and easements registered on the title," Mr Callisto said.
"DPTI does not guarantee that there are no contaminants, pollutants, toxic noxious or dangerous substances in or under the licensed area."
The licence covers a five-year period, and requires the council to maintain the area in a "good, neat and tidy" condition and free from accumulation of waste and any pollutants or contaminated substances.
Mr Callisto mentioned the area could be used for hard stand parking, along with other purposes which could potentially beautify the area.
"The permitted use does allow an area for hard stand car parking (with no picnic tables etcetera), with the balance of the land used for landscaping, beautification and screening only," Mr Callisto said.
"If there was a proposal to change the use to a more sensitive land use (i.e. playpark, picnic area), or essentially anything that invites public interaction, we will need to have an environmental audit undertaken.
"Depending on the extent of the audit this cost may be in the vicinity of $20,000."
The potential transformation of the land could potentially be similar to the plans set for Keith's railway area.
Keith's railway area is set to be turned into a parking area for larger vehicles, along with the addition of art and vegetation to "beautify" the area.
It has taken years for the council to secure the land, but extensive consultation has been going on for years to discuss the potential use for the area.
"There has been an extensive consultation process with Bordertown on the Move and the community over a number of years to determine the future use of the land," Mr Callisto said.
A decision on what the land should be used for will be discussed in the near future.