Ferndown Golf Club in Dorset has secured planning permission from Dorset Council for a 30,000m3 water storage facility on its site.
The club says the reservoir should have no harmful impacts and is likely to generate its own eco-system.
A planning agent for the club said: “The proposals represent a means of being able to collect and store surface water which can then be used in periods of dry weather instead of relying on mains water.
“The benefits of harvesting and using surface water are significant in economic, environmental and in social terms.”
The club revised its original plans after discussions with Natural England, moving the reservoir away from Parley Common.
The approved site will result in the loss of some low-quality pine trees but will include newly created heathland habitat.
Water will be collected from rainfall and nearby streams, with systems in place to regulate levels and supply irrigation for the course during dry spells.
The reservoir will be largely screened by existing trees to the south of the course, and the nearest homes are located north of the site on Greensome Drive.
The project has received backing from Ferndown Town Council.
Ferndown Golf Club, a 100-year-old club, will use the reservoir to water the course.