In 1978, history was made on the dam when Ken Warby piloted a jet-powered boat hitting 511.13 kilometres an hour, which became the world water speed record and it still stands to this day.

Mr Warby and his son, David, are now on the verge of completing a new boat to be called the Spirit of Australia II.

Although he has come close in recent years to returning to Blowering, he has suffered a number of set backs which has seen those attempts fail to materialise.

However, his record has stood for an astonishing 36 years.

Earlier this month he told the ABC of his intention to return to Tumut and Blowering Dam.

Tumut mayor Trina Thomson, who saw the record set by Spirit of Australia, said it would be a fantastic opportunity for the town if another world water speed record was attempted on Blowering Dam.

"Tumut is incredibly proud of the fact that we can claim the world water speed record on Blowering Dam," she said.

"Our understanding is that they are considering putting another boat on Blowering Dam.

"(However) there are so many things which need to be addressed before the boat goes onto the water.

"It's something quite incredible from our past to provide us with a potentially significant event for the future," Councillor Thomson said.

The original run in the Spirit of Australia was powered by a Westinghouse J-34 jet engine.

In order to reach the incredible speeds, the classic Westinghouse J-34 jet engine has been replaced and an extensive international search was undertaken to find a new power plant.

The Rolls Royce Orpheus 803, an engine which was used in the Italian Fiat G-91 fighter jet fits the specifications - being able to produce enough thrust without being too heavy.