The district's mayor, Graham Smith, said parking and infrastructure were already issues in the district, and he would like to ensure Mackenzie can manage tourists in the future.
The Mackenzie District encompasses popular tourist destinations such as Lake Tekapo, Twizel, and Aoraki Mount Cook.
"It's about giving our tourists a good experience," he said.
Smith said the study would be "absolutely crucial" as the district needed to set its vision for the future.
If the application is successful, the fund will be used to carry out a study about a strategy for the future, but the Mackenzie District will have to make further applications if it wants to implement it.
The Ministry of Business, Innovation and Employment said on its website the fund was to "enhance economic development opportunities in regional New Zealand".
The fund will provide up to $3 billion dollars for New Zealand's regions across the next three years.