The disused building on Moor Top Lane in Guiseley was designed in an ornamental style to resemble a castle turret.
It was once used to pump water from a nearby tank reservoir which supplied the town with drinking water.
Since it fell into disuse, the land has been used to graze horses.
An application has been submitted to Leeds City Council to convert it into a two-bedroom dwelling with the intention of saving the building from falling into disrepair.
Local residents are said to be in support of the plans as long as the building's character is retained.
The pumping station is not a listed building, and it is believed to be Victorian or early Edwardian, although an exact date of construction is not known.
The council's planning team are currently assessing the proposals.