The Government is helping fund a two-year project to investigate the feasibility of remediating treated timber.
It's contributing $163,000 to the project carried out by Scion, a Crown research institute that specialises in research, science and technology development.
The grant, provided through the Waste Minimisation Fund, was announced by Associate Environment Minister Scott Simpson on Sunday.
Timber treated with chromated copper arsenate becomes a hazardous waste material when sent to landfill because it can leach arsenic into the ground.
"To date, there have been no practical remediation options available to this problem, so I am delighted that Scion believes they may have one and that I am able to support them in testing its feasibility," Mr Simpson says.
This study could provide New Zealand with an opportunity to divert CCA-treated timber from landfills, he says.
The project is based in Rotorua.