The Yukon Environmental and Socio-economic Assessment Board is recommending the green light for plans to revamp the Takhini Hot Springs site.
Owner Garry Umbrich is applying for a water licence to expand the tourist destination and create more natural-looking springs.
The assessment board has “determined that the project will not result in significant adverse effects to water quality.”
The new design will see the construction of three or four smaller pools with temperatures between 40 and 42 degrees Celsius. In comparison, the current pools are between 35 and 39 degrees.
One pool, reserved for families, will be slightly cooler and have chlorinated water.
A sixth pool will be available to rent, Umbrich has said.
There are also plans for a spa surrounded by a four-kilometre walking trail.
The assessment board only makes recommendations; it will be up to the Department of Energy, Mines and Resources land use branch to decide whether or not to grant the licence.
Construction is proposed to occur through the summer of 2018.
The existing facility will remain open until the new facility is completed.