New parents who use traditional nappies may be paid £30 per child under a scheme being considered by Oxfordshire County Council.
The proposal by officers is being discussed at Wednesday's environmental committee.
Staff from the council's Waste Management Group hope a scheme could be in place before Real Nappy Week in April next year.
Oxfordshire homes produce 12,000 tonnes of nappy waste a year, costing about £300,000 in disposal charges.
Incentive payments to parents would be funded by the savings in disposal costs.
Green councillor Craig Simmons, who recently became a parent, attended a meeting on the issue earlier this year and suggested a number of proposals.
If the idea gets the go-ahead, it would be managed by a local nappy laundering company.
The Waste Management Group would monitor it and help to promote the scheme in ante-natal classes and maternity wards.
District councils in Oxfordshire would also be asked to contribute to the cost of promoting the scheme.
Waste management officer Adam Symons said in his report: "The use of reusable nappies has environmental benefits including the reduction in resources required for manufacture of disposable nappies.
"These benefits more than outweigh the environmental impacts of laundering reusable nappies."
The council's Waste Management Group would monitor how cost-effective the scheme was after 18 months.
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