Maniototo Public Library has shared facilities with the school library since 2000, but this week the Central Otago District Council announced it would move into the council service centre in Ranfurly by mid-July.
The decision was made in a private council meeting on February 25.
School principal Patsy Inder and Maniototo Community Board chairman Mark Harris said neither group was consulted or involved in decision-making.
Mr Harris said he supported the call for a review.
''I would have thought [the board would be involved]. It ... affects our community. It does not affect anyone who made the decision.''
Council chief executive Leanne Mash said before the decision, several options were assessed, but a report was kept confidential as it affected staff.
The council wanted to engage with the school over the decision, she said.
A statement from the school board said it had been negotiating more equitable cost-sharing of the library's management, to shift ''unequal weighting of costs from the school''.
In 2013, the Otago Daily Times reported the council funded about a sixth of the operating cost at the time, about $51,000.
The board statement said a meeting in December with council staff left the board with the impression the council would take over library operations in the present location.
The board was ''surprised and deeply disappointed'' at the termination of the agreement for the joint library.
Ms Mash said councils throughout the country faced increased pressure to keep rates increases at an acceptable level.
''This decision was about taking 100% responsibility for ongoing library services now and into the future.
''In the first instance this is not a cost-cutting exercise. There will be some costs in the relocation as we will be adding self-check facilities and additional resources to access the entire online catalogue.
"These are costs we are incurring in all libraries to gradually bring them into line with desired modern service standards.''
The CODC provides $63,210 towards the library at present.
Its proposed budget for 2015-16 year was to increase to $87,000.
All present council library employees - one permanent part-time and several casual - would continue work at the new location, Ms Mash said.
Central Otago Mayor Tony Lepper said the new set-up would be similar to a solution in Roxburgh that was ''popular with the residents''.
Ms Inder said the school library would be ''much, much smaller'' after the split.
Cr Stu Duncan, who represents the Maniototo ward, said he understood it was an emotional issue, but people needed to remember there would still be a library in the town.
If anyone had an issue they could contact him, he said.
The council service centre was about four blocks from the area school.
The librarian and community board member, Sue Umbers, did not want to comment.
The new library will be open from 1pm-4pm, Monday to Friday, compared with 10am-4pm at present.
