A row between businesses in the West Coast town of Franz Josef and the Westland District Council over precautions for a major earthquake is heading for the Environment Court.
Mediation between the businesses and council to try and solve the issue of an earthquake red-zone in downtown Franz Josef has been unsuccessful.
The Westland District Council proposed the red zone plan to minimise the risk to people, if there was an earthquake on the Alpine Fault, and it means businesses inside the redzone can continue to operate, but are not allowed to expand.
Five businesses have appealed to the Environment Court against the decision.
Lawyer for the owners Graeme Todd said mediation had failed and the case would now go to the court.