County Commissioner Tim Boyd said sewer problems are holding back development near the new Bass Pro Shop in East Ridge.
He said there is a significant need for sewer improvement at the Exit One location.
The County Commission plans to support an effort to seek a $525,000 state grant to fund the sewer work.
Officials said there will be a number of applicants for the grant, and it is about a 50-50 chance that it will go to Hamilton County.
There will be no cost to the county since the match will be borne by the Hamilton County Water and Wastewater Treatment Authority.
It will pay a 19 percent match, minus certain credits.
Officials said they are seeking other grant help as well for the needed sewer upgrades.