Plans are being reconsidered to house international competitors on a cruise ship at the 2012 Olympics sailing events in Dorset.
Organisers are instead looking to build an Olympic village on land in or around Weymouth and Portland, to host up to 400 international athletes.
A total of 600 rooms will be needed and organisers will also ask residents to offer spare bedrooms.
The original plans were to moor a cruise ship in Weymouth Bay.
Negotiations are also taking place with landowners for nine park-and-ride sites to take spectators to the Games.
An intensive traffic management scheme is also being planned for routes between London to Weymouth.
Signs will be erected with information about hold-ups, and "active intervention" patrols will remove breakdowns and vehicles involved in minor accidents.
In June, plans to build an Olympic training site so international teams could prepare for the Games were rejected.
Teams including the US, France and Australia have said they need to be able to train in advance.
The Weymouth and Portland National Sailing Academy has instead said Team GB's facilities can be used upon request, on a first come, first served basis.
Construction of the Team GB training base is under way alongside the completed Olympic venue at Osprey Quay.