Bougainville's government says it's taking the Papua New Guinea government to the Supreme Court over the non-payment of funds to the autonomous region.
Under the Bougainville Peace Agreement, signed at the end of the civil war nearly two decades ago, Port Moresby is compelled to make annual payments to the regional government.
But the Bougainville government says it has not received any of the budgeted money this year, which the vice president, Raymond Masono, says is crippling services in the region.
The president, John Momis, has threatened to take the dispute to the courts for months, and now Mr Masono says the government is following through on the threat.
Mr Masono told Jamie Tahana the government has hired a lawyer, and hopes to have a ruling within months.