Dunedin City Council has rejected a $300,000 Rugby World Cup fanzone that had been proposed for the Octagon.
The concept of the official fanzone was presented at the council's meeting on Friday, with more than $100,000 to be spent on a large screen and thousands more on tables, chairs and live performances.
But the Dunedin Mayor, Dave Cull, says that was too much money for the city to spend.
Mr Cull says the community has already gone into unprecedented debt to build the city's new stadium in time for the Rugby World Cup, and is reluctant to spend hundreds of thousands of dollars more on a fanzone.
He says the council is investigating more financially viable options and will make a decision next month.