Plotholders will be asked to volunteer to help with the construction project, which will start with the preparation of the plot including digging and levelling.
The toilet will be built on part of plot 14, with the agreement of the plotholder.
Investigations have shown that building the toilet from scratch will cost £850 in materials - not including the concrete and sand needed for a solid base.
Buying a pre-fabricated shed to the same dimensions would cost about £400 - but the shed would need to be adapted with a strengthened floor and roof and an internal lining.
The door to the building also needs to be at least three-feet wide to allow for wheelchair access.
The committee has not yet agreed to release funds for the project, but has agreed in principal and has determined that cost-free preparation work can begin.
Other toilets for PHGAS have been built aftter securing funding.
The toilet at Lower Penns Road, due to open this month, was gven a £500 grant by Paignton Carnival Committee.
PHGAS committee has agreed to investigate what funding may be available for the new project.