The President of Bougainville says the autonomous region will take legal action over the Papua New Guinea Government's failure to meet its constitutional commitments on financing.
This week a memorandum of understanding was signed on the devolution of powers from Port Moresby.
It has been welcomed by President John Momis but he said whether it had effect depended on funding from the national government.
He said since the creation of the autonomous region in 2005 Port Moresby had consistently failed to meet its constitutional obligations over funding.
President Momis has long promised legal action and said his government still intended doing this.
"We firmly believe that the national government has contravened its own constitution. The Bougainville Peace Agreement is enshrined in the Papua New Guinea Constitution. In other words the national government is bound to give us the funds which are required for autonomy building, to prepare for the referendum, to deliver services in Bougainville."