Officials are assessing a proposal by the Far North District Council to split from the Northland Regional Council.
If successful, the council would become a unitary authority, with the powers of both district and regional councils.
Local Government Commission chief executive Donald Riezebos says if it decides the plan would improve local government in the area, a draft plan will be prepared and public submissions will be sought.
There are five unitary authorities in the country - Auckland, Gisborne, Marlborough, Nelson and Tasman.
