Birmingham's Lord Mayor is reconsidering a plea from campaigners to set up a museum to remember the Elan Valley flooding.
Requests for money to support the new Community Museum in Rhayader were initially rejected by Birmingham City Council leader, Councillor Mike Whitby.
However, the Lord Mayor Coun John Hood has written to the chairman of the Community Arts Rhayader and District (Carad) to discuss possible funding avenues.
Every day, tens of thousands of gallons are transported to Birmingham from the Elan Valley reservoir in Powys.
The valley was flooded 101 years ago when the government of the day used a compulsory purchase order to buy it and evict more than 100 residents.
Coun Whitby (Con Harborne) said a community museum in Rhayader to preserve artefacts dating back to the valley's flooding would be "of limited direct benefit" to the city's residents.
The Lord Mayor's letter to Peter Cox says: "To move the situation forward I am quite happy to meet with you or the Mayor of Rhayader to discuss collaboration between Rhayader and Birmingham and how funds may be raised for the museum."
Mr Cox said: "We are delighted the Lord Mayor has had the chance to consider how important this historic opportunity is to the people of Birmingham as well as to the people of Rhayader."