Sahdae Energy Ltd., Tulita Yamouria Secretariat and the Deline Land Corporation are trying to sell the idea to the Mackenzie Valley Pipeline producers.
Dan Grabke, a spokesperson for Sahdae Energy, said if the Mackenzie Valley Pipeline producers pick up the option of powering the pipeline through hydroelectric power, the dam could be built in six years time.
The proposal calls for a dam at the St. Charles Rapids, halfway between Deline and Tulita.
"It's a very steep river with constant flow near the area of development," said Grabke.
The project has the potential to take the entire Sahtu area and make it a "have region" as opposed to a "have-not region," said Grabke.
If the Mackenzie Valley Pipeline producers get on board, that would mean an anchor customer, said Grabke.
"That would allow infrastructure development to get the communities off diesel," he said.
The group is also proposing a 600-kilometre transmission line to Inuvik.
"We can turn ourselves into a grid with renewable energy supplying ourselves into the future," Grabke said.
The group says the project will cost $500 million to construct.
As far as securing a stable customer for the project, Grabke says the pipeline group isn't saying no.
"We're still in the discussion stage," he said.
The dam proponents say even though the Mackenzie Valley Pipeline presently calls for burning their own gas, powering the pipeline with hydroelectric power is still an option.
"Gas turbine maintenance cost is high. Electric motors can run for 20 years without much maintenance," said Grabke.