Queenstown Lakes District Council says shelving plans to upgrade a one lane bridge at Kawarau Falls is a clear signal that the Government is ignoring regional roading.
It has been told the project won't go ahead for at least three more years.
The bridge over the Kawarau River was built in the 1920's and is one of only two ways in or out of the resort. Traffic has to queue to cross the river.
The Transport Agency says there is not enough money to fund another bridge until at least 2015.
The council says it will keep lobbying the agency.